cell phones in Iraq

from Time Magazine bq. When U.S. authorities in Iraq picked three companies last month to build a wireless telephone network for the country, they were pleased that no Americans were among the winners, a fact they hoped would silence those who charge that the Bush Administration is handing reconstruction contracts only to business cronies and campaign contributors. But some telecom-industry insiders complain that the winners of the licenses, which cost just $5 million but could eventually be worth as much as $1 billion a year, benefited from ties to prominent Iraqis on the U.S.-backed Governing Council. The majority partner in the consortium that was awarded the southern-Iraq license, for instance, is Dijla Telecommunications Corporation, a Baghdad outfit headed by Ali Shawkat, the son of Mudhar Shawkat, a senior adviser to Iraqi National Congress President Ahmad Chalabi. Coalition officials and the Shawkats denied to Time that the family's connections were behind the decision to grant Dijla the license. But others contend the deal reeks of cronyism. "The mobile contracts were all politically divided," says an Iraqi emigre who returned as a consultant for a telecom firm. "It's the same as Saddam's time. It's about who you know." Actually, this is a bit more complex than it seems on the surface... There are two basic standards for cell phone technology - CDMA and GSM CDMA is the better of the two by far and is the one used in most of the US. GSM is the one used by 90% of the Arab nations (and Old Europe). GSM was chosen - even though it's faults are known - to match the phone system in use in the area. For a great discussion of the two standards, check out Steven DenBeste's website here

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This page contains a single entry by DaveH published on November 17, 2003 10:36 AM.

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