VZCZCXRO2174
PP RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #3633/01 3211146
ZNY CCCCC ZZH
P 161146Z NOV 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 0417
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003633 
 
SIPDIS 
 
FOR NEA/I ECON ASSIST PASS TO TF-BSO 
 
E.O. 12958: DECL: 11/16/2028 
TAGS: EAID ECON ECPS KINT IZ PGOV PREL
SUBJECT: COMMUNICATIONS MINISTER NOT KEEN ON INDEPENDENT 
TELECOMS REGULATOR 
 
REF: STATE 113842 
 
Classified By: ECOUNS Michael Dodman for reasons 1.4 (b, c). 
 
¶1. (C) Summary: Iraq Minister of Communications Farouk Abdel 
Qadir told ECOUNS on November 5 that "Iraqi people suffer 
from poor quality of service," so the Ministry of 
Communications (MoC) must provide not only infrastructure and 
clear laws, but also strict monitoring of service quality. 
Admitting Iraq's difficulty in making the transition from 
central planning to a liberal market system, Abdel Qadir at 
once contradicted himself, espousing strong central MoC 
control of the telecoms sector.  The MoC is working closely 
with the Multi-National Force Communication and Information 
Systems Directorate (MNF-I CJ6) to develop a near-term 
strategy to build on Iraq's present infrastructure.  Abdel 
Qadir cited the Egyptian telecommunications model as a 
suitable model for Iraq, with licensing and operations 
handled by one entity, "bringing balance to the system." 
Echoing the Minister's point, Deputy Minister Amer Bayati 
said the Communications Media Commission (CMC) should only 
control frequency assignments, allowing the MoC to control 
all other regulatory, monitoring, licensing, and 
infrastructure responsibilities.  These statements do not 
bode well for Iraq's three telecommunications laws which are 
to be voted on soon in the Council of Representatives (CoR). 
Accordingly, we will encourage the GOI to allow the World 
Bank to review these laws as soon as possible.  End summary. 
 
¶2. (U) Participant list: 
 
Iraq: 
- Farouk Abdel Qadir Abdel Rahman (Tawafuq/IIP) -- Minister 
of Communications 
- Amer Bayati -- Deputy Minister of Communications 
- Kassim Hassani -- Director General for Internet Services 
 
United States Embassy: 
- Michael Dodman -- ECOUNS 
- Roy Therrien -- ESTH Officer (notetaker) 
 
¶3. (SBU) Iraq Minister of Communications Farouk Abdel Qadir 
told ECOUNS on November 5 that the ministry's main goal is to 
attract foreign investment and private companies to work with 
the ministry to improve Iraq's telecommunications service. 
"Iraqi people suffer from poor quality of service," said 
Abdel Rahman, so the ministry must provide not only 
infrastructure and clear laws, but also strict monitoring of 
service quality.  Otherwise, "Iraqi companies will not 
operate like western companies."  Abdel Qadir alternated his 
stance, at once espousing strong central MoC control of the 
telecoms sector while equally lamenting Iraq's difficulty in 
making the transition from central planning to a liberal 
market system.  Agreeing with ECOUNS' views on the importance 
of market competition to drive improved service and the 
introduction of advanced technologies, Abdel Qadir concluded 
that that was why the ministry needed expert planning 
assistance to formulate the ministry's long-term 
telecommunications strategy. 
 
¶4. (SBU) Deputy Minister Bayati said the MoC has a "clear 
vision" for the country's telecommunications system: 
"Eventually, all services will be provided by the private 
sector," he said, with the MoC's role limited to ownership of 
the major infrastructure, licensing, and regulation.  Noting 
the ministry is working closely with the Multi-National Force 
Communication and Information Systems Directorate (MNF-I CJ6) 
to develop a near-term strategy "to build on our present 
infrastructure," Abdel Qadir said what the ministry needs 
most is "expert consultancy" to help them build a long-term 
strategy.  He claimed the Task Force for Business Stability 
Operations (TF-BSO) has offered this kind of planning 
assistance to the MoC.  (Note:  MNF-I CJ6 conducted their 
first joint planning session with the MoC on November 10, 
focused on outlining near-term infrastructure improvements to 
quickly build service capacity as well as the importance of 
including private sector competition for building and 
operating infrastructure.  TF-BSO has provided two 
consultants and two engineers under contract supporting MoC 
strategic planning efforts. End note.) 
 
¶5. (SBU) Claiming Coalition Provisional Authority (CPA) Rule 
65, which established the Communications Media Commission 
(CMC), "was not done very well," and "weakened the MoC," 
Abdel Qadir cited the Egyptian telecommunications model as a 
more suitable model for Iraq.  "The Egyptian MoC handles both 
licensing and operations, bringing balance to the system," he 
said.  Unable to collect licensing fees, the Iraq MoC depends 
on the Ministry of Finance (MoF) for its budget.  "Under the 
previous regime, we provided IQD 47 billion to the MoF," he 
 
BAGHDAD 00003633  002 OF 002 
 
 
said.  "Now we need money from MoF just to pay our salaries." 
 Overlooking ECOUNS' explanation of the importance of having 
balanced regulatory and operational functions to provide 
improved telecommunications service, Deputy Minister Amer 
Bayati said the CMC should only control frequency 
assignments, allowing the MoC to control all other 
regulatory, monitoring, licensing, and infrastructure 
responsibilities.  "We are building not only physical 
infrastructure, but also legal infrastructure," he said.  "We 
are giving more control to private companies day by day, but 
growth must be gradual." 
 
¶6. (C) Comment: The irony of these statements by the MoC's 
most senior leadership does not bode well for Iraq's three 
telecommunications laws which are to be voted on soon in the 
Council of Representatives: the MoC Law, CMC Law, and the 
Chief Information Officer Council Law.  Accordingly, we will 
encourage the GOI to accept the World Bank's offer (reftel) 
to review these laws before the CoR vote to ensure they 
include provisions for an independent regulator. 
CROCKER