Korek Accuses Iraq’s Telecom Regulator of ‘Unlawful’ Campaign as Shutdown Looms

Company says CMC lacks authority to cancel settlement agreement, warns measures could damage Iraq’s reputation among foreign investors

Korek logo. (Image: Korek)
Korek logo. (Image: Korek)

ERBIL (Kurdistan24) — Korek Telecom has accused Iraq’s Communications and Media Commission (CMC) of pursuing an “unlawful, unprofessional and unjust” campaign against the company and its shareholders, after the regulator announced that it was continuing procedures to shut down Korek’s telecommunications network.

In a statement issued Sunday, Korek said it was “deeply saddened” by the CMC’s latest announcement, which outlined measures to be taken against the company, arguing that the action was part of a series of what it described as “harsh measures” driven by the political direction of the commission’s leadership.

The company said it was not surprised by the latest development, claiming it had become accustomed to successive measures taken against it by the regulator. Korek said it had welcomed the temporary suspension of such measures after a judicial committee was established under Order No. 251244 on May 27, 2025, and issued recommendations that were subsequently approved by the former prime minister.

Based on those recommendations, Korek said the CMC’s Board of Commissioners issued a decision on September 22, 2025, approving the implementation of the committee’s recommendations and the signing of a settlement agreement between the company and the commission.

According to Korek, the agreement was tied to granting the company a license to provide fourth-generation (4G) mobile services under conditions comparable to those granted to Iraq’s two other licensed mobile operators.

The settlement agreement was signed on September 23, 2025, Korek said, with its implementation conditional on the company being formally notified that the 4G license had been granted.

The company alleged that an administrative obstacle was subsequently introduced, preventing the completion of procedures needed to finalize the licensing agreement and delaying implementation of the settlement.

Korek said correspondence continued between relevant government authorities until June 2, 2026, in an effort to remove the obstacle. However, it alleged that the CMC remained opposed to the proposed solutions, eventually issuing a decision on June 2 to terminate the settlement agreement.

The company claimed that the decision was intended to allow the CMC to proceed with a plan to leave a single national company among Iraq’s mobile operators.

Korek also said the CMC continued publicizing its position against the company through media platforms while its challenge to the decision was pending, before issuing its latest statement warning subscribers about the planned shutdown.

Korek challenges CMC’s authority

Korek argued that the head of the CMC’s executive body does not have the authority to cancel the settlement agreement, saying the agreement had been approved by higher authorities and was not concluded solely through a decision of the commission.

The company questioned whether the regulator had considered the consequences that what it described as “unlawful, unprofessional and unjust” measures could have on Iraq’s reputation among foreign investors.

Korek also said it holds a final and enforceable judicial ruling awarding it hundreds of millions of dollars in compensation against the CMC over measures taken against the company in previous years.

Despite holding the judgment, the company said it had delayed enforcement out of respect for government authorities that had sought to resolve the dispute and secure a fair outcome.

Korek called on Iraqi Prime Minister Ali al-Zaidi to intervene and ensure what it described as justice for the company in response to the alleged mistreatment.

The company pledged to continue defending the rights of its shareholders and pursuing legal avenues to secure what it considers a just resolution, expressing confidence in the country’s leadership and judicial institutions.

CMC says Korek failed to meet obligations

The CMC, meanwhile, said Sunday that it was continuing procedures to suspend Korek Telecom’s network, citing the expiry of its contract and the cancellation of the settlement agreement following what it described as the company’s failure to fulfill its contractual, legal and financial obligations.

The commission said its actions were based on the powers granted to it under Section Nine of Order No. 65 of 2004 and applicable Iraqi legislation.

It said it had already taken the necessary legal, financial and administrative measures against Korek, including placing seizure orders on its movable and immovable assets in accordance with the law.

The CMC said the ongoing process would include shutting down all components, equipment and systems belonging to Korek’s network.

It also called on Korek subscribers—including individuals, government institutions and private-sector entities—not to renew their subscriptions, recharge their balances, sign up for new services or make further payments to the company, warning that customers could suffer financial losses if the network is completely shut down.

The commission urged subscribers to retain their Korek SIM cards and not hand them over to any party, saying any future instructions concerning the cards would be announced through its official website and platforms.

The CMC further instructed Korek employees and contractors to preserve the company’s assets and protect personal, financial and legal information, warning that unauthorized disclosure, copying or distribution of company data could result in legal action.

Property owners hosting Korek telecommunications towers were also instructed to protect the towers and equipment and prevent company employees or contractors from accessing, dismantling or removing equipment without formal authorization from the commission.

The CMC maintained that all measures against Korek were being taken within its legal authority and were intended to protect the public interest, safeguard subscribers’ rights and ensure proper regulation and continuity of Iraq’s telecommunications sector.