Developing broadband in frontier markets: opportunities and challenges in the Kurdistan Region of Iraq
| DOI | https://doi.org/10.1108/DPRG-09-2016-0043 |
| Pages | 126-138 |
| Published date | 13 March 2017 |
| Date | 13 March 2017 |
| Author | Marolla Haddad,Carlo Maria Rossotto |
| Subject Matter | Information & knowledge management,Information management & governance,Information policy |
Developing broadband in frontier
markets: opportunities and challenges
in the Kurdistan Region of Iraq
Marolla Haddad and Carlo Maria Rossotto
Marolla Haddad is ICT
Policy and Regulatory
Specialist at Transport
and ICT Global Practice,
World Bank Group,
Washington, DC, USA.
Carlo Maria Rossotto is
Lead ICT Specialist at
Transport and ICT Global
Practice, World Bank
Group, Washington, DC,
USA.
Abstract
Purpose –This paper aims to explore how the Kurdistan Region of Iraq (KRI) can leverage broadband,
as a frontier emerging market, to diversify the economy and promote growth, job creation and
productivity. The objective is to analyze the challenges and opportunities of the broadband market and
propose policies to boost its development and achieve medium to long-term economic benefits.
Design/methodology/approach –The paper uses qualitative and quantitative tools to study the legal
and regulatory environment, market structure, competitive dynamics and available services and
infrastructure in the KRI. The data and information analyzed were obtained through field research,
primary data collection and consultation with government institutions, telecom operators and IT
companies.
Findings –Obstacles to broadband development in the KRI are barriers to competition, the need for
clearer and more transparent policies and regulations and a fragmented market. However, when the
right conditions are in place, KRI has the potential to emerge as a regional hub for international
broadband connectivity and significantly expand local broadband access.
Originality/value –This paper presents a first-of-its-kind baseline analysis of the telecom sector in the
KRI. Very little information is available on the KRI market, which also has not been previously studied
separately from the Iraqi market. Based on the fieldwork, the paper relies on region-specific data to
analyze the particularity of the market and identify reforms within the prerogative of the regional
government.
Keywords Broadband networks, Competition, Middle East and North Africa, Economic diversification,
Kurdistan region of Iraq, Submarine cables
Paper type Research paper
1. Introduction
The Kurdistan Region of Iraq (KRI) is a federal and semi-autonomous region in Iraq whose
economy is highly dependent on the oil sector (World Bank Group, 2016a). The Kurdistan
Regional Government (KRG) has developed a set of objectives in its 2020 vision to ensure
that “all people will enjoy the benefits of freedom, health, welfare, and economic security
and opportunity” (Ministry of Planning, 2013). At its core, the vision aims to deliver the
necessary social and physical infrastructure and develop a diversified economy relying on
the private sector.
In recent years, the drop-in oil prices as well as the increasing security threats have
exacerbated the vulnerabilities in the KRI economy and led to a deep fiscal crisis. The
major structural issues facing KRI are high dependency on the oil sector, an excessive role
of the public sector in the economy, dependency on imports and a weak financial system
and dependency on cash-economy (World Bank Group, 2016a). The World Bank,
therefore, recommends that the government address both the imminent fiscal crisis and the
Received 14 September 2016
Revised 2 November 2016
Accepted 4 November 2016
A version of this paper and
the fieldwork upon which it is
based were conducted as part
of a World Bank analytical
work on the economic growth
prospects of the KRI managed
by Sibel Kulaksiz (Senior
Economist, Macro Economics
and Fiscal Management
Global Practice); an executive
summary of the diagnostic is
available at: http://documents.
worldbank.org/curated/en/992
661468195837755/Executive-
summary
PAGE 126 DIGITAL POLICY, REGULATION AND GOVERNANCE VOL. 19 NO. 2, 2017, pp. 126-138, © Emerald Publishing Limited, ISSN 1463-6697 DOI 10.1108/DPRG-09-2016-0043
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