VZCZCXYZ0002
RR RUEHWEB

DE RUEHBO #3583/01 2681504
ZNR UUUUU ZZH
R 241504Z SEP 08
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 4903
INFO RUEHBR/AMEMBASSY BRASILIA 8400
RUEHPE/AMEMBASSY LIMA 6586
RUEHCV/AMEMBASSY CARACAS 1055
RUEHLP/AMEMBASSY LA PAZ SEP PANAMA 2378
RUEHQT/AMEMBASSY QUITO 7263
RUCPDOC/DEPT OF COMMERCE WASHDC
RHDIFCC/FCC WASHDC

UNCLAS BOGOTA 003583 
 
SENSITIVE 
SIPDIS 
 
EEB/CIP FOR TFINTON; FCC FOR JGIUSTI; COMMERCE FOR JANGLIN 
 
E.O. 12958: N/A 
TAGS: ECPS ECON EINV EAID PREL CO
SUBJECT: AMBASSADOR GROSS LAUNCHES NEW ERA IN BILATERAL 
TELECOM COOPERATION 
 
REF: BOGOTA 2523 
 
¶1. (SBU) SUMMARY. As part of a broader effort to expand 
economic relations with Colombia and complement the pending 
U.S.-Colombia Trade Promotion Agreement (reftel), Ambassador 
David A. Gross, U.S. Coordinator for International 
Communications and Information Policy, launched a new 
bilateral dialogue on telecommunications and information 
technology with Communications Minister Maria del Rosario 
Guerra on September 18.  In addition to the government talks, 
which covered bilateral and multilateral issues for 
coordination and resulted in agreement to share best 
practices on spectrum allocation, Ambassador Gross met with 
private industry to discuss investment climate issues and 
presided over the launch  of the USAID-supported Last Mile 
Initiative connectivity project in Santa Marta.  Local press 
positively covered both the conclusion of the bilateral talks 
and Ambassador Gross's trip to Santa Marta. END SUMMARY. 
 
Promoting Telecom Investment 
---------------------------- 
 
¶2. (SBU) Kicking off his three-day visit, Ambassador Gross 
met with U.S. telecommunications and information technology 
companies to obtain their views on Colombia's market 
potential and challenges.  Representatives of Unisys, Cisco, 
Hewlett-Packard, 3M, DirectTV, Avantel, and Alcatel-Lucent 
told Ambassador Gross that Colombia's telecom and information 
technology markets offered great potential in light of the 
improving security situation and strong economic policies of 
the Uribe Administration.  Several companies specified that 
they expected the broadband market to grow rapidly and 
provide numerous investment and export opportunities for U.S. 
firms. 
 
¶3. (SBU) However, the companies also identified significant 
challenges including a trend toward government institutions 
ignoring international arbitration decisions, the absence of 
Colombia as a party to WTO agreements on government 
procurement, and increasing competition from inexpensive 
Chinese equipment.  Company representatives encouraged closer 
USG collaboration with industry on providing technology 
training opportunities for Colombian officials in order to 
better promote U.S. technology to compete with Chinese and 
other competitors. 
 
Telecom Dialogue: Mechanism for Closer Cooperation 
--------------------------------------------- ---- 
 
¶4. (SBU) Ambassador Gross, accompanied by the Charge d' 
Affaires, Senior Advisor Timothy Finton, Federal 
Communications Commission Deputy Director for International 
Affairs John Giusti, Commercial Counselor Margaret 
Hanson-Muse, and Deputy Economic Counselor William Popp, 
launched the new bilateral dialogue on telecommunications and 
information technology with Communications Minister Maria del 
Rosario Guerra on September 18.  Minister Guerra, accompanied 
by Vice Minister Daniel Medina, Communications Regulatory 
Commission (CRT) Director Cristhian Lizcano, and senior 
staff, presented the GOC's strategy to lower telecom costs, 
increase access, and promote investment.  Minister Guerra 
highlighted the industry's rapid growth in Colombia (double 
the GDP growth rate), regulatory changes to promote 
technology investment (including elimination of the 
value-added tax on computer technology), and new 
"e-government" initiatives to increase public access to 
information, government services, procurement solicitations, 
etc. 
 
¶5. (SBU) Ambassador Gross outlined USG experiences with 
spectrum allocation, government policies to promote 
interconnection and steps to increase public access to 
information technology, including broadband deployment.  On 
spectrum policy, FCC representative Giusti agreed to the 
Colombian request to provide FCC views on the technical 
portion of the spectrum allocation handbook under development 
as well as to exchange information on other areas of spectrum 
and communications policy. Ambassador Gross also briefed the 
Colombian delegation on USG efforts to promote Internet 
Freedom while protecting the rights of all users, including 
protecting children from objectionable material. 
 
 
 
¶6. (SBU) Shifting to multilateral issues, Ambassador Gross 
presented U.S. views on restructuring of the International 
Telecommunication Union (ITU), commending its positive role 
fostering telecommunications adoption around the world but 
noting that the USG would welcome a return to a more 
bottom-up approach to the institution as well as a 
reevaluation of the ITU's appropriate role in standardization 
and satellite issues.  As for the future of the OAS regional 
telecom council, CITEL, Ambassador Gross and Minister Guerra 
agreed that it was important to maintain a forum for American 
countries to address telecom and information technology 
issues together.  With regard to the International 
Telecommunications Satellite Organization (ITSO), Ambassador 
Gross requested that the GOC support USG proposals at the 
forthcoming Assembly of Parties to improve transparency, good 
governance, and confidence-building within the organization, 
including through the selection of an accountable new 
Director General.  Minister Guerra agreed and said she also 
hoped the U.S. and Colombia could continue to coordinate 
closely within the International Mobile Satellite 
Organization (IMSO).  (NOTE: Ministry of Communications 
International Affairs Advisor Joaquin Restrepo told Econoff 
September 22 that the GOC supported the IMSO amendments 
proposed by the U.S. but that it was unlikely that Colombia 
would be able to send a delegation to the next assembly 
meeting. END NOTE.) 
 
¶7. (SBU) Minister Guerra and Ambassador Gross concluded the 
dialogue with a roundtable attended by Colombian 
telecommunications associations and a representative of the 
U.S.-based Telecommunications Industry Association (TIA). 
Representatives of the call centers association, software 
industry, mobile phone industry and small business technology 
association all emphasized the strong growth outlook for 
Colombia's communications industry.  They identified the need 
for more foreign capital and investment as the most important 
factor in expanding the sector.  Ambassador Gross recounted 
steps taken in the U.S. to encourage investment, reduce 
costs, and efficiently allocate spectrum without hurting 
existing users.  The industry representatives welcomed the 
U.S.-Colombia Bilateral Telecommunications Policy Dialogue as 
a valuable mechanism for promoting coordination and 
investment.  Ambassador Gross and Minister Guerra agreed that 
the bilateral governmental talks and the discussions with 
industry were valuable and should continue on an annual basis 
to be hosted next in Washington in 2009. 
 
Fostering Internet for All Colombians 
------------------------------------- 
 
¶8. (U)  Following the dialogue, Ambassador Gross visited the 
north coast town of Santa Marta September 19 to help 
inaugurate the Last Mile Initiative, a public-private 
partnership between USAID, U.S. companies (Avantel, Intel, 
Microsoft, Cisco, Google, Polyvision, and Exxon-Mobil), the 
Ministry of Communications and Santa Marta local government. 
Together with Minister Guerra, company representatives, and 
Santa Marta Mayor Juan Pablo Diaz Granados, Ambassador Gross 
launched free wireless internet connectivity in the city's 
central historic district as well as high-speed connectivity 
of the city's justice house to facilitate faster access to 
legal services for the community and training in conflict 
resolution for 4,000 community leaders.  With equipment 
purchased by USAID and donated by U.S. company partners, the 
Last Mile Initiative will eventually connect 325,000 
individuals and institutions including schools, hospitals, 
justice houses and local government offices in 50 
municipalities in Colombia. 
 
Positive Press Coverage 
----------------------- 
 
¶9. (U) Over 20 local journalists covered Ambassador Gross and 
Minister Guerra's press conference concluding the telecom 
talks.  Leading print outlets El Tiempo (Colombia's largest 
and most influential daily, centrist, circ. 1.2 million), La 
Republica (business daily, Conservative party-oriented, circ. 
32,000), and Dinero (financial weekly magazine, circ. 
250,000) published coverage of the talks, highlighting the 
dialogue as a new, annual mechanism for promoting sector 
 
 
development and coordinating positions for multilateral fora. 
 Evening television news program "Telepais" also carried 
coverage of the talks and focused on opportunities for the 
U.S. and Colombia to share experiences on spectrum allocation 
and satellite industry development.  Several local press 
outlets in Santa Marta also carried stories of Ambassador 
Gross' inauguration of the Last Mile Initiative. 
 
¶10. (U) Ambassador Gross and FCC Deputy Director Giusti 
cleared this cable. 
NICHOLS