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DE RUEHAH #0915/01 2001318
ZNR UUUUU ZZH
P 181318Z JUL 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 1181
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
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RHMFIUU/CDR USCENTCOM MACDILL AFB FL
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RUEKJCS/SECDEF WASHINGTON DC
RUEHVEN/USMISSION USOSCE 2703

UNCLAS SECTION 01 OF 02 ASHGABAT 000915 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB 
PLEASE PASS TO USTDA DAN STEIN 
ENERGY FOR EKIMOFF/THOMPSON 
COMMERCE FOR HUEPER 
 
E.O. 12958: N/A 
TAGS: PREL ECPS EIND AJ TX
SUBJECT: TURKMENISTAN:  MINISTER OF COMMUNCIATIONS WELCOMES 
POSSIBLE COOPERATION WITH USTDA 
 
REF: ASHGABAT 901 
 
¶1.  (SBU) Sensitive but unclassified.  Not for public 
Internet. 
 
¶2.  (SBU) SUMMARY:  During a July 17 meeting with the U.S. 
Trade and Development Agency (USTDA) Regional Director for 
Europe and Eurasia, Dan Stein, Minister of Communications 
Hojagurbanov acknowledged Turkmenistan's need to strengthen 
its communications and information technology sectors.  To 
that end, it is embarking on a crash course of 
capacity-building projects with international financial 
institutions.  Turkmenistan is seeking to de-monopolize its 
cellular phone market and is working on laying additional 
fiber optic lines.  Hojagurbanov welcomed the possibility of 
a USTDA program.  Stein will provide proposals in about two 
weeks, possibly including projects in Emergency Management 
and Communications and e-Government.  Both sides would 
benefit if Minister Hojagurbanov would also participate in a 
study tour.  END SUMMARY. 
 
ACTIVELY TRYING TO DIVERSIFY THE CELL PHONE MARKET 
 
¶3.  (SBU) Stein met with Hojagurbanov and Chairman of Turkmen 
Telecom Annadovlet Muhammedov (who serves concurrently as 
Deputy Minister of Communications) on July 17.  Hojagurbanov 
said that there are almost one million cell phone subscribers 
in Turkmenistan, with projected service jumping to 1.5 
million subscribers in the next year.  The minister said that 
Turkmenistan is trying to attract other cellular service 
providers, in addition to domestic company Altyn Asyr and 
Russian firm MTS which are currently servicing Turkmenistan's 
market.  To that end, the government is reviewing proposals 
from Russian and European firms.  Hojagurbanov said that MTS 
will sponsor the university education of 20 students in St. 
Petersburg. 
 
WE ARE A LITTLE BEHIND, BUT ARE WORKING HARD TO CATCH UP 
 
¶4.  (SBU) With President Berdimuhamedov's support, the 
Ministry is purchasing Wi-Max, 3G, and other state-of-the-art 
Internet technology from companies such as Cisco Systems. 
The Ministry also works with Siemens, Huawei, and Eurasia 
Limited, which provide training in Turkmenistan and have 
"good relations" with the Ministry.  Hojagurbanov 
acknowledged that "We are a little behind, but we are working 
hard to catch up."  He also said, "We cannot stay behind the 
rest of the world -- we have to catch up." 
 
FIBER OPTIC LINES BUILT WITH FOREIGN ASSISTANCE AND 
INDEPENDENTLY 
 
¶4.  (SBU) Hojagurbanov said that the Ministry is working with 
the Islamic Development Bank to build an 
Ashgabat-Balkanabat-Turkmenbashy fiber optic line.  The 
Chinese EXIM Bank supplied credit for other fiber optic lines 
and development of the cellular phone system.  Turkmenistan 
built the Ashgabat-Dashoguz line without outside assistance. 
The Ministry will extend a fiber optic line which is in the 
process of being laid from Turkmenabat to Imamnazar to 
Afghanistan.  The Minister said that Turkmenistan and the 
Government of Azerbaijan are also working together to review 
the costs and benefits of laying a trans-Caspian fiber optic 
line. 
 
READY TO CONSIDER ALL PROPOSALS 
 
¶5.   (SBU) Minister Hojagurbanov said that Turkmenistan needs 
both practical experience and theoretical  instruction, in 
 
ASHGABAT 00000915  002 OF 002 
 
 
areas as diverse as tariff issues, and training operators, 
engineers, and management.  He said that he was aware that 
the telecommunications sector in the United States is very 
progressive, and welcomed any program proposals that Stein 
might offer, especially grants and study tours for 
specialists. 
 
NEXT STEPS 
 
¶6.  (SBU) Stein said that USTDA would provide concrete 
proposals in about two weeks to the Ministry.  Information 
technology-oriented study tours to the United States include 
visits to Washington, DC and Silicon Valley.  Before the 
group would depart, USTDA would send a specialist to help put 
together a presentation on Turkmenistan's technology sector. 
Stein suggested that Turkmenistan might also be interested in 
a project on Emergency Management and Communications, which 
would cover government response and emergency communications 
technology used during natural disasters, terrorist acts, and 
other unexpected actions.  Stein also discussed e-government 
applications for internal government communications or for 
use in delivery of services to citizens. 
 
¶7.  (SBU) COMMENT:  The success of USTDA's hydrocarbon sector 
training program has garnered some strong support for the 
agency within Turkmenistan's government.  That fact, combined 
with Hojagurbanov's recognition that he is starting from a 
low bar in improving Turkmenistan's IT sector makes it likely 
that he will follow up on any USTDA proposals.  Both the 
United States and Turkmenistan would likely benefit from his 
participation in one of these study tours, as well.  END 
COMMENT. 
CURRAN