Internet Prices in Kurdistan: Recent Developments

Kawa A. Junad, CEO of the largest Internet service provider in Iraqi Kurdistan, which boasts 85% market share, argues that Newroz Telecom has been playing a key role in reducing the Internet prices by connecting Kurdistan to Turkey via a fiber optic cable.
Commenting on the connection Junad said: “That was a turning point in the history of the Iraqi telecom market because until that moment, everything was a monopoly, including the market in Kurdistan.”

He continues: “Based on that connection, there was a huge discount on the bandwidth given to companies and subscribers at that time. 1 Mb previously cost more than US $1,400, and now it only costs US $20. Without that interconnection, it would not have been possible. Unfortunately in Iraq, this is still the case.”

“If you’re in Iraq, 1 Mb is still US $1,200 – this is the most expensive rate in the world, more expensive than Cuba, and perhaps very few people know that. It is because in Iraq, they still have a monopoly and they don’t allow any private sector company to make deals with neighboring countries, including connecting to Kurdistan. They are very strict about that, and the internet penetration is only 2%.”

“By opening up the bandwidth Kurdistan reached 10% and the goal is to reach 35% and probably 50% by the end of 2015,” concludes Junad.