Iraq Telecommunications Report Q2 2016
BMI View: As BMI forecast in Q3 2015, the presence of IS in Iraq continues to be a major short-termchallenge for mobile operators. However, in liberated cities such as Tikrit operators are beginning toreport an improvement in ARPU and relatively better operating conditions. Political instability,compounded with lower oil prices, is also straining the consumer's ability to spend. Despite thesechallenges, we are positive on the long-term growth potential of mobile and 3G services, but remainsceptical on the substantial uptake of Mobile Financial Services, given regional trends in the Middle Eastand North Africa.Latest Updates & Industry Developments
The mobile market contracted by -32%% y-o-y in Q4 2015 as the security situation continues to take itstoll.
Both Zain and Asiacell's revenues recovered slightly in Q4 2015. Take up of 3G services throughout 206may help to further stabilise ARPUs over the coming quarters. The take-up of Mobile Financial Services,launched by both Zain and Asiacell may however experience challenges.
Iraq's fixed-line and broadband penetration rates remained low at 4.9% and 3.2% respectively at the endof 2015. 3G will drive access to affordable broadband connectivity over the coming years.
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