The US plans its own mobile tender

Batelco unexpectedly launched its mobile roaming service last week, allowing the country's few cellphone owners to make and receive calls around the world.

But the authorities were concerned that a renegade service provider could upset its own plans to put Iraqi mobile licences up for tender next week.

Since Batelco had not applied for a licence of its own, the Coalition Provisional Authority (CPA) has asked the firm to shut down its roaming facility.

The firm said it had already spent $5m (�3.1m) on infrastructure in Baghdad and did not want to stop.

'We want to work'

The company insisted it was in the process of putting its Iraqi operations on a legal footing.

It insisted it had asked the CPA for a licence, and that it planned to invest over $50m in the country.

It launched its service last week without permission, it said, because there was no authority in existence to grant licences.

"We don't want to create enemies... We are here to help," said regional operations manager Rashid al-Snan.

"There is a huge demand for the service. We would like the opportunity to continue to work."

Tender time

As for fully licensed mobile services, the CPA said these would take "weeks rather than months".

Mobile services were banned under Saddam Hussein - except for a handful of top officials - and about half of the country's landlines were knocked out of service during the US-led invasion.

Next week's tender, which closes in mid-August, remains open to all bidders, even Batelco, CPA said.

A number of firms, mainly based around the Middle East, have already said they will be participating.

But the CPA has not yet decided whether Iraq's future mobile network will be based on US technology, or on the more popular European GSM standard.