VZCZCXRO3987
RR RUEHROV
DE RUEHKH #0986/01 1151357
ZNR UUUUU ZZH
R 251357Z APR 06
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC 2474
INFO RUCNIAD/IGAD COLLECTIVE

UNCLAS SECTION 01 OF 02 KHARTOUM 000986 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV ECPS ECON SU
SUBJECT:  Southern Sudan:  Cell Licensing First, 
Questions Later 
 
REF: Khartoum 00634 
 
¶1. (SBU) SUMMARY:  Under Secretary for Communications and 
Postal Services Elijah Biar Kuol told Acting Consul 
General Juba (A/CG) that the Government of Southern Sudan 
(GoSS) could no longer wait for a resolution in the fight 
over their right to issue telecommunication licenses 
(reftel).  Kuol said that the National Telecommunications 
Commission (NTC) had not been cooperative, that Mobitel 
had not added capacity, and that the South could no 
longer afford to continue without basic communications. 
Therefore, it issued a license to the locally owned 
GemTel, which has now installed equipment in Juba and 
Yei, and which will start selling SIM cards in early May. 
Kuol expects a court challenge to this move, but believes 
the GoSS will win because of the "one country, two 
systems" established in the CPA.  Kuol said the GoSS 
would accept whatever the court decides.  END SUMMARY. 
 
--------------------------- 
Mobitel, NTC Non-Responsive 
--------------------------- 
 
¶2. (SBU) Kuol explained that the NTC has licensed four 
telecommunications companies in Sudan, but only two -- 
Sudatel and Mobitel -- operate in the South.  Sudatel is 
now exclusively a landline operator, so Mobitel is the 
only choice for cellular communications.  Kuol said that 
the GoSS is happy with the service provided by Sudatel, 
and would not sell additional landline licenses. 
Mobitel, which has so far not been able to provide the 
reliable cellular service essential for growth in the 
South, claims that the issue is network capacity.  They 
have not, however, moved to expand that capacity within 
the past year despite repeated requests from the GoSS. 
 
¶3. (SBU) The GoSS had wanted to review the existing NTC 
licenses to see if they could compel the operators to 
improve service.  Kuol reasoned that if a company, or set 
of companies, are given exclusive access to a market, 
their license should stipulate requirements for that 
market.  NTC has refused to share the contract. 
 
------------------ 
Desperate Times... 
------------------ 
 
¶4. (SBU) The GoSS has now decided to move ahead and 
license a cellular company itself for operations in the 
South, a move the NTC has called illegal.  Kuol realizes 
issuing the new license before the issue is resolved is 
an extreme move, but he feels communications problems 
have become such a threat to development and the 
functioning of the government, that doing so is 
justified. 
 
¶5. (SBU) The GoSS said it would continue to honor any 
licenses granted by the NTC before the signing of the 
CPA, so Mobitel is welcome to upgrade its equipment and 
remain.  Kuol did indicate that if Mobitel sought to 
expand its business to new areas, this would be 
considered a new operation, and require a license from 
the GoSS 
 
-------------------- 
Local Boys Make Good 
-------------------- 
 
¶6. (SBU) The company that has stepped in is called 
GemTel, which worked with the SPLM during the war.  Kuol 
would not go into detail on the ownership or origins of 
the company, and only stated that it was a Southern 
Sudanese business that has worked with the SPLM for years 
and knew how to do business in the South. 
 
¶7. (SBU) GemTel has spent the past two months installing 
and testing equipment in Juba and Yei.  Kuol has tested 
its system and says that coverage is good throughout both 
cities.  He says that there are a few technical 
difficulties to be worked out, and one dead spot in Juba 
to correct, but the company will be ready to start 
selling its SIM cards in May.  It plans to have initially 
10,000 subscribers, 5,000 each in the two cities.  GemTel 
will then take these earnings and invest them in 
expanding capacity and establishing a new network in 
Malakal.  GemTel plans to eventually offer coverage 
throughout the South.  Kuol noted that the GoSS was able 
to make this progress despite U.S. sanctions which apply 
to many cell phone technologies. 
 
¶8. (SBU) Because of the way in which GemTel has been 
 
KHARTOUM 00000986  002 OF 002 
 
 
licensed, it is doubtful that it will b able to sign a 
roaming agreement to allow GemTel customers to use its 
phones in the north.  They will, however, attempt to sign 
roaming agreements with all the surrounding countries, 
especially Kenya and Uganda. 
 
STEINFELD