Korek to pay $1.25 billion to lift telecom restrictions: Iraqi commission

16-10-2024
Rudaw
A+ A-

ERBIL, Kurdistan Region - Iraq’s Communications and Media Commission (CMC) on Wednesday said it has reached a deal with Korek Telecom to settle outstanding payments totaling $1.25 billion, allowing the company to resume full operations after nearly a year of restricted service.

Zahra al-Bachari, head of the Iraqi parliament’s transport and communications committee, told Rudaw that per the agreement, "Korek Telecom will pay $1.25 billion to the Iraqi Media and Communications Authority over a period of six years."

For nearly a year, subscribers to Korek, a company headquartered in Erbil, have been unable to make or receive calls and to send or receive messages from domestic and international mobile carriers.

The CMC blocked Korek Telecom’s communications with domestic and international carriers, citing unpaid financial obligations. Concurrently, domestic carriers, including Asiacell and Zain, received official letters from the CMC instructing them to sever network connections with Korek due to "financial, legal, and technical matters."

"Korek has officially expressed agreement to repay the accumulated money," said Bachari, adding that repayment will lead to the lifting of restrictions.

The payments initially were to be sent to the Iraqi finance ministry, she said, but the ministry refused and asserted that the CMC was responsible based on a decision from the Iraqi Supreme Judicial Council.

Korek Telecom has not commented on the agreement.

Korek was warned by the CMC in October 2023, when the commission stated the company's operating license had expired, and that it had failed to pay "large sums" of owed money. 

Korek responded at the time that it had with regulations imposed by state institutions and called the CMC's actions "illegal," while also expressing a willingness to resolve the issues according to the law and to cooperate communications with the CMC.

Nahro Mohammed contributed to this report.


Comments

Rudaw moderates all comments submitted on our website. We welcome comments which are relevant to the article and encourage further discussion about the issues that matter to you. We also welcome constructive criticism about Rudaw.

To be approved for publication, however, your comments must meet our community guidelines.

We will not tolerate the following: profanity, threats, personal attacks, vulgarity, abuse (such as sexism, racism, homophobia or xenophobia), or commercial or personal promotion.

Comments that do not meet our guidelines will be rejected. Comments are not edited – they are either approved or rejected.

Post a comment

Required
Required
 

The Latest

Khor Mor gas field in Sulaimani province's Chamchamal district. Photo: Dana Gas

Dana Gas begins arbitration against Enerflex over Khor Mor project delays

The UAE-based Dana Gas on Tuesday announced that its consortium Pearl Petroleum has begun legal proceedings against Enerflex, a gas industry supplier, over performance issues it claimed led to delays at a Khor Mor gas field expansion project in the Kurdistan Region.