Regulation

Iraq's CMC to shut down Korek Telecom’s network – Korek asks PM to stop it

Iraq's CMC to shut down Korek Telecom’s network – Korek asks PM to stop it

Iraq's Communications and Media Commission (CMC) kicked off legal proceedings on Monday to shut down the network of Korek Telecom, who is fighting the move, accusing the CMC of overstepping its authority.

Korek Telecom – which operates in Iraq’s Kurdistan Region – and the CMC have been sparring since 2023, when the regulator ordered Korek to pay US$800 million to resolve an ongoing dispute over outstanding unpaid fees. Earlier the same year, the International Chamber of Commerce’s (ICC’s) International Court of Arbitration ordered Korek to pay US$1.65 billion in damages to Iraq Telecom Limited (ITL) and International Holdings over a cancelled deal by ITL to buy 44% of Korek in 2011 amid allegations of corruption and fraud.

Korek and the CMC agreed on a settlement deal last year regarding the telco’s financial debts. However, this past June, the CMC cancelled its contract with Korek and suspended its operations, saying the telco had breached the contract and failed to meet its legal and financial obligations.

On Sunday, the CMC issued a statement saying that it was taking legal, financial, and administrative steps against Korek, including placing a hold on its movable and immovable assets, and implementing procedures to decommission all network components, devices and systems belonging to the company.

The CMC statement also advised all Korek customers – including businesses and government institutions – not to renew subscriptions, top up balances, sign up for any new services from Korek, or pay any outstanding dues, to avoid financial losses related to the shutdown.

That said, the CMC also told Korek subscribers to keep their SIM cards until the regulator decides what to do with Korek’s network assets.

The regulator also warned Korek employees and contractors to preserve all the company's property and personal, financial and legal data, and not to illegally leak, copy or distribute and data or documents.

The CMC statement also asked owners of the real estate hosting telecoms towers to guard the towers against theft, tampering, or damage, as well as to prevent Korek employees or contractors from touching any of the equipment without CMC authorisation.

According to Iraq-based news site Rudaw, Korek issued a statement on Sunday in response to the CMC announcement, saying the regulator lacked the authority to cancel the settlement deal, “as that settlement was approved by higher authorities and was not the result of a decision by the Commission itself.”

Korek also called on Iraqi prime minister Ali al-Zaidi to intervene in the case, the report said.

The CMC statement said its actions are in accordance with Order (65) of 2004, the legislation that established the regulatory agency to oversee development of Iraq’s telecoms sector, ensure fair competition and protect the rights of subscribers.



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