At a Glance 

• Iraq's CMC is fully suspending Korek Telecom's operations and infrastructure.
• CMC will seize all Korek property over an unpaid $1.5 billion debt. 
• Users and institutions must stop all financial transactions and balance recharges immediately. 

Iraq's Media and Communications Commission (CMC) announced it will completely shut down the telecommunications company Korek Telecom and seize all its assets due to critical contractual violations and financial breaches.

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Key Statement and Focus Area

• The Media and Communications Commission is actively implementing all necessary legal and regulatory measures to fully suspend the operations of the Korek Telecom network.
• According to the CMC, this comprehensive process involves shutting down all infrastructure, technical components, devices, and systems belonging to the company to ensure total compliance with judicial and legal decisions.

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The commission stated in a statement on Sunday that it has initiated strict legal and financial measures against Korek Telecom following the expiration of its contract.

The regulatory body has seized company's movable and immovable assets, citing the company's breach of contractual terms and failure to fulfill its legal and financial obligations.

Acting under the authority of Section 9 of Order 65 (2004), the commission stated the enforcement actions were necessary to "regulate the telecommunications sector" and "protect subscribers' rights" after a previous settlement contract was canceled.

The statement noted the commission issued an urgent directive warning all individual subscribers, government institutions, and private companies to immediately halt all financial transactions with Korek Telecom, including balance recharges and new service renewals.

The commission emphasized that these restrictive measures are crucial to protect users from financial losses ahead of an imminent, complete shutdown of Korek Telecom's services.

The CMC advises Korek Telecom subscribers to keep their SIM cards to protect their rights, noting that future instructions will be posted on its official website.

“The Commission confirms that it will continue to issue instructions and regulations regarding the implementation mechanism of these measures and determine their specific timelines,” the statement emphasized, urging subscribers to follow the official website and official platforms of the CMC to stay informed of any updates or instructions issued in this regard.

Furthermore, the CMC orders all Korek Telecom employees and contractors to protect all company property, legal records, and financial data.

Staff must not leak or copy unauthorized data, as any violations will lead to direct legal liability under current laws.

Landlords must cooperate with security forces by blocking Korek staff from accessing, dismantling, or moving any equipment without formal commission approval.

The CMC orders property owners hosting telecommunications towers to safeguard all equipment or face full legal liability for any damages.

FYI

The Iraqi Communications and Media Commission took legal action against Korek Telecom following a prolonged dispute over approximately $1.5 billion in unpaid licensing fees, regulatory fines, and missed debt restructuring deadlines.

In late 2024, the CMC granted Korek a financial settlement contract to restructure its debts. However, the agreement collapsed because Korek failed to clear its obligations.

Korek Telecom claimed the CMC artificially blocked the deal by refusing to accept tax documents from the Kurdistan Regional Government (KRG).

Korek has rejected the CMC’s enforcement measures, labeling the cancellation of their settlement contract as an "illegal and coercive" move designed politically to force the operator completely out of the Iraqi market.

The CMC stated that its actions against company comply fully with Order 65 of 2004 and existing Iraqi legislation.

The regulator maintained these legal measures are necessary to safeguard public interest, user rights, and telecom sector stability.

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