VZCZCXRO9997
OO RUEHDBU RUEHIK RUEHLN RUEHPOD RUEHPW RUEHSK RUEHSL RUEHVK RUEHYG
DE RUEHBUL #2920/01 2631043
ZNR UUUUU ZZH
O 201043Z SEP 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1620
INFO RUCNCIS/CIS COLLECTIVE
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE

UNCLAS SECTION 01 OF 03 KABUL 002920 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR S/SRAP, SCA/RA, SCA/A, EEB/CIP 
DEPT PASS AID/ANE 
DEPT PASS OPIC 
 
E.O. 12958 N/A 
TAGS: ECPS EAID PREL PGOV AF
SUBJECT: Afghanistan: Building Cell Towers and Developing Telecom 
Capacity and Fiber Optic Infrastructure 
 
REF: 08 Kabul 2020 
 
¶1. (SBU) Summary: Minister of Telecommunications and Information 
Technology Amir Sangin said he supports ISAF plans to locate 
cellular phone towers on U.S. Forward Operating Bases (FOBs), and 
thinks state-owned Afghan Telecom should own the towers, renting 
space to other service providers.  He complained USAID road 
subcontractors cut a portion of new fiber optic cable in Afghanistan 
which links the country to Pakistan, but set out suggestions for 
avoiding future occurrences.  He requested USG technical assistance 
in developing the ability to market fiber optic services.  Sangin 
reiterated support for a risk insurance fund for cellular operators 
and said earlier plans to privatize Afghan Telecom are on hold for 
at least three years given the current security situation and global 
financial crisis.  Discussing other aspects of his portfolio, 
Minister Sangin noted the need for outside help in developing 
Afghanistan's postal service -- which he said now reaches all 
provinces regularly except Helmand and Nuristan -- and instituting a 
national identity card plan for which he hopes the U.S. will provide 
initial financing.  Embassy's Interagency Telecommunications Working 
Group is working to support the increased cell phone towers, aspects 
of the fiber optic cable issue, and ways to provide advisors to 
Afghan Telecom.  Embassy will follow up on assistance requests 
working with USAID in concert with ISAF and others.  End Summary. 
 
Towers on FOBs: Good Idea, But Who Will Own Them? 
--------------------------------------------- ---- 
 
¶2. (SBU) Minister of Telecommunications and Information Technology 
Amir Sangin told Coordinating Director for Development and Economic 
Affairs, Amb. E. Anthony Wayne, September 17 he has not had frequent 
discussions with ISAF regarding plans to locate cellular phone 
towers on U.S. Forward Operating Bases.  His understanding of the 
state of play of talks between ISAF and Afghanistan is that ISAF is 
considering providing state-owned Afghan Telecom with cellular 
infrastructure, but allowing commercial providers to rent space on 
the towers.  Ambassador Wayne said the USG is working to ensure 
commercial providers have opportunities to use the towers.  (Note: 
ISAF plans to lease towers-on-wheels from a private contractor.  The 
cellular provider will likely be a U.S. company operating on Afghan 
Telecom infrastructure.  Once the towers are operational, commercial 
providers also may be able to place their equipment on them.  End 
note.) 
 
¶3. (SBU) Sangin said any plan should designate ownership of the 
towers to ensure routine maintenance.  He said Afghan Telecom 
ownership would be "a good start," but private telecoms should have 
space for their own infrastructure and pay rent to Afghan Telecom. 
He agrees with the idea discussed in earlier conversations with 
visiting State officials that television and radio providers be 
allowed to mount equipment on towers and added that community radio 
stations should not be charged for this service.  Sangin suggested 
working with Afghan Telecom would be simpler than ISAF negotiating 
directly with multiple telecoms and would expedite tower 
construction and operation.  (Note: ISAF plans to lease the towers 
will prevent clear ownership in the short-term.  Both Embassy and 
ISAF will work with the Ministry and Afghan Telecom to develop an 
agreed way forward.  End Note.) 
 
Risk Insurance Still a Option 
----------------------------- 
 
¶4. (SBU) In response to a query from Ambassador Wayne, Sangin said 
the Ministry still supports risk insurance to help rebuild towers 
destroyed by insurgent attacks.  However, as he has said before, the 
Telecommunications Development Fund (TDF), which is intended to 
support service expansion to underserved areas, cannot be the sole 
source of funding -- private operators must also pay a premium. 
Minister Sangin suggested one-half of one percent of revenue would 
be sufficient.  This step, Sangin continued, would allow use of the 
national TDF for a program that would mainly benefit the south of 
Afghanistan and would demonstrate the Afghan Government is not 
simply subsidizing profitable telecoms companies, which will help 
avoid criticism from a Parliament which perceives the companies make 
large profits. 
 
Afghan Telecom: No Privatization, For Now 
----------------------------------------- 
 
¶5. (SBU) After an unsuccessful 2008 tender process, Afghan Telecom 
will not be privatized for at least three years, Sangin said.  The 
current security situation scares off many potential attractive 
investors, while others cannot obtain capital due to the global 
financial situation.  As many prospective buyers are Russian, Sangin 
said future heavy usage by ISAF and Afghan military customers makes 
 
KABUL 00002920  002 OF 003 
 
 
him hesitant to sell Afghan Telecom for data security reasons.  He 
also cited concern that the leading companies interested in buying 
Afghan Telecom are Russian.  Still, to prepare for privatization, 
the Ministry will add new features such as d-cell broadband and 
expand the copper cable network. 
 
 
Fiber Optic Cable Not in Service Everywhere 
------------------------------------------- 
 
¶6. (SBU) Sangin outlined multiple setbacks in building a nationwide 
fiber optic cable, which physically connects to networks in 
Uzbekistan, Tajikistan, and Pakistan, as well as Iran.  The Uzbek 
network operator refuses to agree on a contracted price for network 
traffic and is demanding a three fold increase, thus the connection 
may not be operational by October 1 as planned.  Sangin said this 
situation underscores the urgency for Afghanistan to develop 
multiple connections to international networks. 
 
¶7. (SBU) The Minister also noted a USAID road contractor 
accidentally cut the cable near the Pakistani border, severing the 
network's connection to Pakistan a few days after it was completed. 
Sangin said the Ministry of Public Works was not aware of the USG's 
plan to build a road near the cable and had not warned the 
contractor laying the cable.  Ambassador Wayne said USAID met three 
times with the Deputy Minister and provided the cable contractor 
with road design drawings.  The Afghan Ministry's contractor has not 
provided USAID with drawings of the cable location or the 
coordinates of the cut, as requested.  USAID issued a stop-work 
order along a 27 kilometer section of the road to ensure the cable 
is not cut again.  It has offered to dig trenches for the cable 
along the roads it is constructing.  Sangin said the cable 
contractor had provided the necessary information to the USAID road 
contractor, and suggested it had not been shared with USAID 
management.  (Note: We will follow up with the contractor to ensure 
he received this information.  End note.) 
 
¶8. (SBU) Despite construction challenges, Sangin seeks donors to 
support an additional cable from Kabul to western Afghanistan 
crossing through the central part of the country.  The additional 
line would create a double loop in the country, helping ensure 
continued service even if the cable was cut in other places.  Its 
construction would also mean economic benefits in some of the 
poorest, least developed parts of Afghanistan.  Ambassador Wayne 
said he would discuss the idea within the Mission and with ISAF and 
evaluate its compatibility with other projects. 
 
¶9. (SBU) Ambassador Wayne added the Embassy and USFOR-A are both 
interested in commercially leasing cable space, but Afghan Telecom, 
which owns the cable, lacks capacity to negotiate commercial 
arrangements.  USFOR-A has offered to provide an advisory team to 
Afghan Telecom to help it negotiate commercial agreements.  Sangin 
found the idea attractive, noting the Ministry needs an expert to 
negotiate international and commercial agreements, but also thought 
over the longer term an advisor supported by USAID or a U.S. 
civilian agency would avoid a conflict of interest with the 
military, which is likely to be the largest customer for Afghan 
Telecom in the near term.  (Comment: Embassy will work with USFOR-A 
as well as others to follow up on these items.  In addition, the 
Embassy Telecom Working Group, which encompasses civilian and 
military representatives, is examining the various options for 
placing mobile towers on FOBs and strengthening Afghan 
telecommunications capability.  End comment.) 
 
Moving on a National Identity Card, Other Projects 
--------------------------------------------- ----- 
 
¶10. (SBU) The European Commission has expressed support for a 
computerized national identity card program, Sangin said, as an 
anti-fraud tool in future elections.  He sees value in the idea, 
even if it may take a number of years to include every Afghan.  Such 
a system, which would store information in a national computer 
system, would undercut individuals' current ability to buy new 
identity cards.  Sangin will present this proposal to an upcoming 
Joint Coordination and Monitoring Board meeting.  Ambassador Wayne 
suggested relevant Ministry staff meet with USAID experts for advice 
and help develop a list of potential donors.  Sangin said the plan 
will cost $15 million in the first year and $10 to $15 million per 
year for two additional years.  He suggested individuals should pay 
a fee and the receipts be used to lower the cost of the program.  He 
made it clear he hopes the U.S. will help fund the start up of this 
project. 
 
¶10. (U) Sangin added that France's La Poste has developed a plan to 
modernize and restore the Afghan postal service that will also be 
 
KABUL 00002920  003 OF 003 
 
 
presented to donors for funding. 
 
EIKENBERRY