The Iraqi unit of Kuwait-based telecoms firm Zain will appeal a $262 million government fine for breaching its license, its chief executive said on Tuesday.

"Yes, definitely we will appeal," Zain Iraq CEO Emad Makiya told Reuters. "They have no right to issue such a penalty."

A fine was imposed on Zain by Iraq for putting 5 million SIM cards in the local market without permission, the country's Communications and Media Commission said earlier on Tuesday.

 "Zain used 5 million chips (SIM cards) and airdropped them to the market ... without the knowledge or permission of the CMC," Ali Al-Awsi, a member of the CMC board of trustees, said. "We know that there were chips put on the market without our knowledge." - Reuters