March 2011 - Asiacell - the first and largest private Iraqi telecommunications company and the only mobile telecom company providing coverage for all of Iraq - has announced that it has no intention of resuming interconnection with millions of unlicensed Zain lines, unless the Iraqi Communication and Media Commission (CMC) issues a decision to that effect.

The CMC had requested all Iraqi telecom companies, in a letter dated 17 February 2011, to stop interconnection with all unlicensed lines, to which Asiacell adhered and discontinued connectivity with millions of SIM cards. As a result, unlicensed Zain subscribers were unable to make or receive off-net calls to Asiacell lines.

Asiacell has said that it had not taken any action toward disconnection prior to receiving the Commission’s letter, despite being fully aware of Zain’s legal infractions when it was fined, and in spite of the significant financial losses it suffered as a result of Zain’s distribution of millions of unlicensed SIMs in Iraq. Asiacell has clarified that its decision to wait until it received official orders before taking action was based on its commitment to protecting the public’s best interests.

Furthermore, Asiacell has revealed that all its lines are licensed by the CMC, denying that it has ever released in the market any unlicensed SIMs. Asiacell also affirmed that it operates in the interest of its customers, seeking to provide them with top quality services and in compliance with the laws, regulations and specifications of the CMC. The Company said that it has never violated the laws in order not to inflict even the slightest loss on its customers, who have reached today some eight million subscribers across Iraq’s 18 provinces.

Looking to the future, Asiacell has pledged better, more advanced services to its subscribers, while affirming its commitment to the CMC law, which clearly stipulates that all decisions issued by the CMC Director General stay valid until otherwise stated. Consequently, and in accordance with the law, Asiacell did not have the jurisdiction to act differently, contrary to Zain’s preferred course of action. “Any decision becomes effective immediately despite any appeals that might have been submitted to contest it,” said the Company.

The Company is currently considering legal action against Zain for the most recent damages to its reputation in its market. Asiacellhad earlier urged the CMC, in a letter, to put an end to Zain’s repeated infringements and to expedite the process of having all other telecom companies cease interconnection with unlicensed Zain lines in order to clarify the situation to Iraqi customers.