Iraq Telecom - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• Telecommunications, or telecom, involves the electronic exchange of information across vast distances, encompassing voice, data, and video transmissions. It is a comprehensive term that spans various technologies and communication infrastructures.
• Increased spending on 5G infrastructure deployment and a surging demand for high-speed connectivity services are set to drive the growth of Iraq's telecom market. Major telecom companies like Nokia and Huawei have firmly established their presence in Iraq. By making significant investments in R&D, these companies are driving market growth and demonstrating a strong commitment to innovation.
• In July 2022, the United Nations Development Programme (UNDP) entered into a new Memorandum of Understanding (MoU) with Iraq's Council of Ministers Secretariat (ComSec) to bolster Iraq's digital services and enhance its e-governance capacities. The emphasis of this MoU lies in leveraging information and communication technology to revamp governmental processes, enhance citizen services, and propel the digital economy.
• The Iraqi government curriculum embraced digital transformation, as confirmed by the Communications and Media Commission (CMC) in February 2024. The CMC endorsed this and also encouraged US tech firms to broaden their operations within Iraq.
• During the US attacks, Iraq's telecommunications infrastructure suffered significant damage. The destruction extended to the primary telecommunication gateway switches, cutting off Iraq's long-distance calling connections globally.
• Rural areas in Iraq face severe internet service challenges. Many areas in Iraq are still using 2G technology. Even in areas with 3G, service quality remains subpar. In the Kurdistan region, the local government limited electricity to just 12 hours a day in the summer, hampering broadband access. While most cafés offer complimentary internet, the quality is often lacking.

Iraq Telecom Market Trends

The Demand for Fixed Broadband Services is Rising

• Major market players are rolling out high-speed broadband services, aligning with the government's ambitious agenda to extend broadband coverage, bolstering 3G, 4G, and 5G networks. In October 2023, Iraq's government announced the cabinet's approval of a project to establish a 5G mobile network in the country. The license to oversee this initiative will be granted to the state-owned Al-Salam Telecommunications Company.
• The reliability of internet speeds significantly drives broadband adoption among businesses in Iraq. Unforeseen Internet outages can disrupt corporate communications and productivity, given that enterprises heavily rely on the Internet for tasks like making phone calls and accessing applications. Moreover, the transition from cable to fiber-optic Internet has notably reduced latency issues, particularly evident in activities like downloading or uploading high-definition content, further propelling Iraq's broadband adoption rate.
• According to Ookla Speedtest Global Index, Iraq ranked 123rd with a median fixed broadband download speed of 33.99 Mbps in May 2024. The demand for fixed broadband services is growing significantly, creating new growth opportunities for the telecom market.
• For over 1,500 years, the Silk Road, an ancient trade network, connected the East and West, fostering the exchange of goods and ideas. In November 2023, an Iraqi fiber optic provider unveiled its modern iteration - The Silk Route Transit Network. This network is poised to bolster Iraq's industrial, retail, and service sectors, acting as the linchpin for a myriad of projects demanding fiber optic connectivity, e-governance, and data centers. Notably, these initiatives aim to steer Iraq's economy towards greater diversification, reducing its historical reliance on the petroleum sector.
• As per the International Telecommunication Union, 82% of urban residents were internet users, compared to 51% in rural areas. With a rising urban population and increasing demand for robust internet connectivity, the market is poised for significant growth. Further, Iraq is constantly witnessing growth in urbanization. According to the World Bank, Iraq's urban population share increased slightly from 70.89% in 2020 to 71.35% in 2022. Such a trend is expected to grow over the coming years owing to the rapid technological advancements in the nation, fueling the market growth.

The Demand for OTT and PayTV Services is Growing

• Key drivers shaping the country's OTT and Pay TV landscape include rising internet penetration, government initiatives for digitalization, and a dynamic cable market. The government champions digital technologies to spur economic growth and bolster competitiveness. Moreover, the smartphone and household TV ownership uptick highlights diverse content preferences among various age and gender groups.
• In April 2024, Accedo and Brightcove, in collaboration with Al Sharqiya Group (Sharqiya), announced to enhance Iraq's media landscape by launching one of the country's pioneering Subscription Video-On-Demand (SVOD) platforms, complemented by live linear channels, under the 1001 OTT streaming service.
• As reported by Digital TV Europe in 2021, Netflix led the pack among subscription video-on-demand (SVOD) platforms, boasting over 3.5 million subscribers in the Middle East and North Africa. Projections from the same source indicate that Netflix's subscriber base is set to surpass 5.4 million by 2027 in the region. Further, the number of subscribers for Shahid and Starzplay were around 50,000 and 30,000, respectively, as of 2022.
• The International Telecommunication Union reported that mobile-cellular subscriptions in Iraq have increased over the years. In 2022, the country had 43.7 million subscribers, up from 37.2 million in 2019. The rise in mobile-cellular subscriptions signifies more individuals having access to the Internet and devices that can stream content. This expanded the potential of OTT and PayTV services in the country.

Iraq Telecom Industry Overview

• March 2024: Ooredoo Group, in collaboration with MediaKind and with support from Microsoft, ventured into the OTT streaming industry with the launch of 'Go Play Market.' This move underscored the pivotal role of strategic alliances and innovation.
• January 2024: BT signed an agreement with BGC, bolstering the latter's operations in Iraq and propelling its digital evolution. Under this partnership, BT will establish a robust network linking BGC's offices, processing plants, and three gas fields. Moreover, BT's services will enhance connectivity to hyperscalers and facilitate the seamless deployment of cloud-based applications, including Microsoft 365.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support