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Diana T Fritz  03/15/2007 02:53:26 PM  From  DB/Inbox:  Search Results

Cable 
Text:                                                                      
                                                                           
      
UNCLASSIFIED

SIPDIS
TELEGRAM                                           April 18, 2004


To:       No Action Addressee                                    

Action:   Unknown                                                

From:     AMEMBASSY ABU DHABI (ABU DHABI 1179 - ROUTINE)         

TAGS:     ECPS, AORC                                             

Captions: None                                                   

Subject:  UAEG TO COLLECT ROYALTIES FROM NEW TELECOM SERVICE     
          PROVIDERS                                              

Ref:      None                                                   
_________________________________________________________________
UNCLAS        ABU DHABI 01179

SIPDIS
CXABU:
    ACTION: ECON 
    INFO:   AMB DCM P/M POL 
Laser1:
    INFO:   FCS 

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: A/DCM: HOLSIN-WINDEC
DRAFTED: ECON: CCRUMPLER
CLEARED: ECON: OJOHN

VZCZCADI983
RR RUEHC RUEHZM RUEHGV RUEHDI
DE RUEHAD #1179 1091103
ZNR UUUUU ZZH
R 181103Z APR 04
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 3993
INFO RUEHZM/GCC COLLECTIVE
RUEHGV/USMISSION GENEVA 0547
RUEHDI/AMCONSUL DUBAI 3940

UNCLAS ABU DHABI 001179 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EB/CIP AND IO/T 
DEPT PASS NTIA AND FCC 
 
E.O. 12958: DECL: N/A 
TAGS: ECPS AORC TC
SUBJECT:  UAEG TO COLLECT ROYALTIES FROM NEW TELECOM 
SERVICE PROVIDERS 
 
REF: ABU DHABI 1155 
 
¶1.  (U) Following the April 12 announcement that the UAEG 
would end Etisalat's monopoly of the telecom sector (ref), 
the UAEG revealed today that it would hold a 60 percent 
equity stake in any new telecom service provider that 
enters the UAE market.  The announcement followed the first 
meeting April 17 of the new Supreme Committee overseeing 
the telecom liberalization program and presided by Minister 
of State for Finance Dr. Mohammed Khalfan bin Khirbash. 
The Committee also discussed setting up a separate and 
independent telecom regulatory authority akin to the FCC in 
the United States. 
 
¶2.  (SBU) The watershed decision to open the UAE telecom 
sector to other providers was announced this week 
coincidentally as MEPI-funded contractors conducted 
training for the GCC states plus Yemen on Trade in Services 
in Abu Dhabi.  A Ministry of Communications employee 
seconded to Etisalat who attended the seminar told Econoff 
that even Ministry of Communications and Etisalat employees 
were surprised by the decision, and heard about it through 
the newspapers.  He posited that the UAEG would license new 
GSM and internet service providers (ISP) first, but require 
them to use Etisalat's existing network infrastructure. 
 
¶3.  (SBU) Comment: The federal budget relies, in large 
part, on revenue transfers from the two largest emirates of 
Abu Dhabi and Dubai.  Etisalat traditionally has 
represented the single major independent source of income 
for the UAE federal government.  The Supreme Committee's 
decision to require new telecom providers to pay royalties 
to the federal government probably is an attempt to strike 
a balance between liberalization of the telecom sector and 
the need at the federal-level for an independent revenue 
stream.  End comment. 
 
Wahba