VZCZCXRO7247
PP RUEHDBU RUEHPW RUEHSL
DE RUEHBUL #3767/01 3281522
ZNR UUUUU ZZH
P 241522Z NOV 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 3385
RUEHDBU/AMEMBASSY DUSHANBE 0139
RUEHNT/AMEMBASSY TASHKENT 0029
RUEHIL/AMEMBASSY ISLAMABAD 8121
RUEKJCS/SECDEF WASHINGTON DC
INFO RUCNAFG/AFGHANISTAN COLLECTIVE

UNCLAS SECTION 01 OF 02 KABUL 003767 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SCA/FO, SRAP, SCA/RA, EEB/CIP AND SCA/A 
DEPT PASS AID/ANE 
DEPT PASS OPIC FOR MORRIS 
 
E.O. 12958 N/A 
TAGS: ECPS EINV PREL AF
SUBJECT: AFGHANISTAN'S FIBER-OPTIC CABLE: PROBLEMS AND PROSPECTS 
 
Ref: KABUL 2920 
 
KABUL 00003767  001.2 OF 002 
 
 
¶1.  (SBU) Summary: Afghan officials have reported for months that a 
fiber-optic cable would soon link Afghanistan's population centers 
and neighboring countries, but they now admit the cable is far from 
complete and international connections rarely function.  Uzbekistan 
and Tajikistan continue to charge exorbitant prices for traffic, 
resulting in a wholesale price per gigabyte at least 50,000 times 
(sic) greater than in some developed countries, according to 
Minister of Communications and Information Technology Amir Sangin. 
Security concerns have also prevented cable construction in the 
South.  Afghan officials and private sector leaders recognize the 
value of the cable and broadband Internet service but will need USG 
help to market this valuable product and to conclude agreements with 
Afghanistan's neighbors.  End Summary. 
 
Fiber-Optic Cable Construction: Domestic Delays 
- - - - - - - - - - - - - - - - - - - - - - - - 
 
¶2.  (SBU) The ongoing fiber-optic cable project connecting 
Afghanistan with its neighbors is critically needed to lower the 
cost of Internet service.  The Ministry of Communications and 
Information Technology (MCIT) has issued licenses to 20 Internet 
service providers, but reliance on expensive satellite links has 
kept broadband Internet out of reach for most Afghans.  MCIT 
Minister Amir Sangin reported November 21 that the cable extends 
from Kabul to Herat and into some eastern provinces, but 
construction south of Kabul has stopped indefinitely due to security 
along the route.  The Kabul-Jalalabad portion of the cable is 
especially important because it connects to Pakistan, one of few 
international routes for Internet traffic.  Road construction has 
accidentally cut the cable between Kabul and Jalalabad several times 
(reftel), but USAID contractors have repaired cuts that are their 
responsibility.  Sangin said the Ministry of Public Works-sponsored 
rebuilding of the Saracha Bridge on the Kabul-Jalalabad route cut 
the cable yet again, but workers quickly repaired it and he expects 
the cable to resume operation shortly. 
 
Greedy Neighboring Countries 
- - - - - - - - - - - - - - - 
 
¶3.  (SBU) State-owned Afghan Telecom, the cable's owner, has 
negotiated with Tajikistan and Uzbekistan for months to arrange 
alternative international service via their cables.  Sangin said 
Uzbekistan committed to provide service in late summer, but then 
doubled its price, delaying service until November 22, when traffic 
began flowing.  Tajik authorities signed an agreement to connect 
their cable with Afghanistan's and are receiving payment, but are 
not actually providing service.  Sangin said he was shocked on a 
recent trip to Hong Kong to hear broadband service there costs $13 
per gigabyte per month.  Pakistan, the cheapest bandwidth provider 
for the Afghan cable, charges $650,000 (sic) per gigabyte per month, 
while Uzbekistan and Tajikistan charge $950,000 and $1 million (sic) 
per gigabyte per month, respectively.  He concluded that this 
explains why it is unlikely Internet will ever achieve the same 
penetration in Afghanistan as in nearby countries. 
 
Plenty of Customers, Not Enough Salespeople 
- - - - - - - - - - - - - - - - - - - - - - 
 
¶4.  (SBU) The cable's largest customers are currently military 
entities, which previously relied on expensive satellite service to 
send data to headquarters in Europe and the Middle East.  U.S. 
Forces Afghanistan (USFOR-A) is now connected to Germany via the 
Uzbek link.  Despite the cable's revenue potential, Afghan Telecom 
has struggled to lease space on the cable to commercial customers 
due to its low managerial capacity.  The World Bank previously 
supported salaries for experienced, expatriate managers, but that 
assistance expired in October. 
 
Comment: The Way Forward 
- - - - - - - - - - - - - 
 
¶5.  (SBU) Minister Sangin has indicated that concluding 
international agreements for cable traffic is his top priority and 
requested assistance through USAID's Economic Growth and Governance 
Initiative (EGGI) program.  EGGI advisors will assist Afghan Telecom 
in preparing a business plan and advancing optical fiber agreements 
with neighboring countries.  Additionally, USFOR-A is considering 
supporting an advisor to Afghan Telecom to build its technological 
and business capacity.  Properly managed, the cable is Afghan 
Telecom's most valuable asset and therefore more attractive 
potential target for privatization in the future.  End Comment. 
 
 
KABUL 00003767  002.2 OF 002 
 
 
EIKENBERRY