VZCZCXYZ0007
RR RUEHWEB

DE RUEHMS #0263 0981241
ZNR UUUUU ZZH
R 071241Z APR 08
FM AMEMBASSY MUSCAT
TO SECSTATE WASHDC 9458

UNCLAS MUSCAT 000263 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, EEB/CIP/BA 
STATE PASS USTR FOR JBUNTIN 
COMMERCE FOR ITA THOFFMAN 
 
E.O. 12958: N/A 
TAGS: ECPS ETRD ECON EINT USTR MU
SUBJECT: OMANI TELECOM AUTHORITY REQUESTS WRITTEN COMMENTS 
IN LIEU OF DVC 
 
REF: STATE 30503 
 
¶1.  (U) This is an Action Request; please see paragraph 5. 
 
¶2. (SBU) On March 31, Econoff delivered reftel demarche to 
Engineer Naashiah al-Kharusi, Committee Member, 
Telecommunications Regulatory Authority (TRA).  In 
particular, Econoff emphasized that the telecommunications 
liberalization study, released by TRA for public comment, had 
taken the USG off-guard, especially since the Omani 
government had already agreed to liberalize its fixed-line 
telecommunications sector per its WTO and U.S.-Oman Free 
Trade Agreement (FTA) commitments.  Econoff continued that 
the USG expected to comment on the TRA's proposed 
telecommunications licensing criteria, which have not yet 
materialized. (Note. A licensing criteria expert, funded by 
the Middle East Partnership Initiative, came to Muscat in 
June 2007 to work with the TRA on establishing FTA-compliant 
licensing criteria.  End Note.) 
 
¶3. (SBU) Kharusi acknowledged that she did not give the USG 
advance notice that the TRA was working on a liberalization 
study for public comment.  She further noted that interest in 
this study had been brisk, and that the TRA would continue to 
accept comments from interested stakeholders beyond the April 
1 deadline, given the number of extension requests received. 
On the telecommunications licensing criteria, Kharusi stated 
that the TRA continues to await feedback from its fixed-line 
consultant; it will also take into consideration public 
comments received on the liberalization study. 
 
¶4. (SBU) In the same breath, Kharusi reaffirmed the TRA's 
interest in opening the fixed-line sector.  She remarked that 
the TRA was disappointed with the meager response to the 
opening of the internet service provider (ISP) sector, which 
she attributed to the fact that Omantel remains the only 
company licensed to provide internet backbone services.  With 
the opening of the fixed-line market, Kharusi envisions more 
competition on the ISP front. 
 
¶5. (SBU) Econoff replied that the USG remains very concerned 
that the TRA's path toward telecommunications liberalization 
may not meet its FTA and WTO commitments, and requested that 
Kharusi participate in a DVC with USTR officials at the 
earliest opportunity.  Kharusi initially agreed to a April 14 
DVC with USTR; however, on April 6, Dr. Said al-Riyami, 
Economic Expert and FTA Coordinator for Oman, informed 
Econoff that in lieu of a DVC, the TRA has requested that 
USTR submit its concerns in writing.  Econoff highlighted the 
fact that a DVC would be the most efficient way of gaining a 
better sense of where the TRA's progress stood on developing 
FTA-compliant licensing regulations, but Riyami reiterated 
that the TRA would respond to USTR's concerns through written 
communication. 
 
¶6. (SBU) Comment and Action Request.  The TRA is still not 
ready to release proposed licensing criteria, a result of the 
outstanding consultant's study, originally expected to be 
finished in January.  The TRA also seems intent on requesting 
feedback on proposed regulatory changes from interested 
parties via written correspondence.  Embassy requests USTR's 
views on how to proceed in light of the TRA's reluctance to 
engage via DVC.  End Action Request. 
GRAPPO