Tower sharing the arrangement by which multiple mobile network operators share the same physical telecoms infrastructure is an increasingly important feature of Iraq’s telecoms landscape. By sharing towers, base station equipment enclosures, and power systems, operators can significantly reduce capital expenditure on network rollout, improve coverage in rural and underserved areas, and contribute to the efficient use of Iraq’s limited physical infrastructure resources. For MNOs operating in Iraq, understanding the legal framework for tower sharing, the CMC’s regulatory position, and the key terms of tower sharing agreements is essential knowledge for network development teams and their legal advisers.

Why Tower Sharing Matters in the Iraqi Market

Iraq’s telecoms infrastructure landscape presents specific characteristics that make tower sharing commercially attractive. The country’s significant geographic size, challenging terrain in certain regions, and the cost of deploying power infrastructure in areas with unreliable electricity supply all increase the cost of network rollout. Iraq’s history of infrastructure damage and ongoing reconstruction means that existing tower infrastructure is unevenly distributed. For MNOs with coverage obligations under their CMC licences particularly for rollout into rural governorates, tower sharing with an established operator or tower company can be the most cost-effective path to meeting regulatory requirements. Tower sharing also reduces the visual and environmental impact of telecoms infrastructure a consideration of increasing importance in urban planning contexts.

CMC’s Regulatory Position on Tower Sharing

The CMC’s regulatory framework supports infrastructure sharing as a mechanism for improving coverage and reducing network deployment costs. CMC regulations require operators with significant market power in tower infrastructure typically the incumbent operator or major tower company  to provide access to their passive infrastructure on fair, reasonable, and non-discriminatory (FRAND) terms. The CMC has authority to: mandate infrastructure sharing where an operator refuses reasonable access requests; set reference access terms where commercial negotiations fail; adjudicate disputes between operators regarding infrastructure access; and impose conditions on tower sharing arrangements to protect competition. Operators should be aware that the CMC’s involvement in tower sharing disputes can be invoked by any party, providing a regulatory backstop to commercial negotiations.

Passive vs Active Infrastructure Sharing

Tower sharing in Iraq encompasses different forms of infrastructure sharing that must be clearly distinguished in any agreement. Passive infrastructure sharing the most common form involves sharing physical assets including: the tower structure itself; the base station enclosure or shelter; power supply and backup power systems (generators and batteries); security fencing; access roads; and site leases with the underlying landowner. Active infrastructure sharing a more advanced form involves sharing electronic components of the network including: radio access network equipment (RAN sharing); spectrum addressed separately in spectrum sharing arrangements; and backhaul, the transmission links connecting base stations to the core network. The CMC’s regulatory requirements and the commercial terms differ significantly between passive and active sharing, and the distinction must be clearly reflected in any sharing agreement.

Key Legal Terms of a Tower Sharing Agreement

A well-structured tower sharing agreement in Iraq should address: access rights the precise scope of the infrastructure access being granted, specifying which passive elements are included and the technical parameters; term the duration of the sharing arrangement and renewal provisions; fees, the sharing fees payable by the tenant operator (sharer) to the host operator or tower company, and the basis for fee calculations and escalation; co-location conditions, technical requirements for equipment installation by the sharer, including load specifications and interference management; maintenance responsibilities which party is responsible for maintaining shared passive infrastructure and how costs are allocated; service level agreements, availability and performance commitments for the shared infrastructure; site access procedures,  how the sharer’s engineers access the site for installation, maintenance, and emergency response; and termination the circumstances in which either party can terminate the sharing arrangement and the consequences of termination.

Underlying Site Lease 

Every telecoms tower in Iraq is located on land or a building owned by a third party whether a private landowner, a government entity, or a municipality. The underlying site lease between the tower owner and the landowner directly affects the validity and continuity of any tower sharing arrangement. Key issues for sharers to assess include: does the underlying site lease permit sub-licensing of the site to third parties? What is the remaining term of the underlying lease a sharer taking a ten-year sharing arrangement on a site with a two-year lease faces significant exposure; is there a right of renewal in the underlying lease? What are the landowner’s termination rights? These questions require careful due diligence on the underlying site documentation before any sharing arrangement is agreed.

Tower Companies in Iraq

The Iraqi tower market is in a relatively early stage of development compared to more mature markets where independent tower companies (towercos) own and operate passive infrastructure on a multi-tenant basis. Independent towercos offer significant advantages: professional management of shared infrastructure; standardised sharing terms; and separation of the tower ownership function from network operations. Several tower infrastructure initiatives have been announced in Iraq in recent years, and the model is gaining traction. For MNOs considering tower sharing, the choice between sharing with another MNO and accessing an independent towerco involves different legal, commercial, and competitive considerations.

How Etihad Law Firm Assists

Etihad advises MNOs, ISPs, and tower companies on tower sharing agreements in Iraq from due diligence on site portfolios and underlying leases to drafting and negotiating sharing agreements, advising on CMC regulatory requirements for infrastructure access, and representing clients in infrastructure access disputes before the CMC.