ICT PROGRAMS IN JORDAN

UNCLAS SECTION 01 OF 03 AMMAN 006250

SIPDIS

DEPT PASS FOR ANE/MEA KIM FINAN
USDOC FOR 4520/ITA/MAC/ONE/PAUL THANOS
USDOC FOR 6400/ITA/TD/OEC/KFERGUSON
TREASURY FOR PIPATANAGUL
TDA FOR SIGLER

E.O. 12958: N/A
TAGS: ECON ECPS EAID JO
SUBJECT: ICT PROGRAMS IN JORDAN

REF: A) AMMAN 6060 B) STATE 203796


1. (U) Per REFTEL request, we are providing information on
telecom regulation, internet, and other IT-related questions
posed, as well as a description of ICT projects related to
education, business skills, business development, and
e-government in Jordan.

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THE TRC: REGULATOR-IN-WAITING
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2. (U) Under the terms of the new Telecommunications Reform
Law passed last year, the Telecommunications Regulatory
Commission (TRC) becomes the sole regulator of telecom policy
in Jordan, now effective November 1, 2002. As of that date,
the five member commission will be totally independent of the
Ministry of Information Communications and Technology
(MOICT). The commissioners work full time, and are appointed
by the Council of Ministers under the recommendation of the
Minister of ICT, currently Dr. Fawaz Zu'bi.


3. (U) Unfortunately, various political and operational
considerations have delayed the appointment of the five
members, originally expected to have been made early in the
spring of 2002, until very recently, with a fifth slot yet to
be filled. According to MOICT Policy Advisor Roger Guichard,
the TRC will be headed by Muna Nijem, former Director of Next
Generation Business Technology at Motorola. Nijem will be
joined on the TRC by former TRC Director Mamoun Balqar, MOICT
Chief Information Officer Mahmoud Khasawneh, and Fadi Kawar,
Executive Director of Talal Abu Ghazaleh and Co. The fifth
commissioner, designated as a lawyer slot, will be filled by
October 30, an earlier appointee having removed his name from
consideration.


4. (U) According to Guichard, Bob McDonald, formerly an
attorney for Regulatory Affairs for Sprint, has been hired to
work with the TRC on regulation and policy with USAID
funding. Guichard said that now that the TRC is finally a
full-time, independent board, it can proactively address the
many challenging issues on its agenda, such as market
liberalization for mobile in 2004 and fixed-line in 2005,
interconnection rates, voice-over Internet Protocol, and pay
phone connection rates. (Note: Guichard told us that Allo, a
major pay phone provider in Jordan, had its service cut off
by Jordan Telecom October 1 over a payment dispute. As the
provision of this service is a public policy issue, the TRC
will step in and attempt to bring the parties to resolution.
End note)

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Telecom Privatization
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5. (U) Having begun the privatization of Jordan Telecom in
2000, with the support of the USAID-funded Executive
Privatization Commission, by selling 40% of the company to
France Telecom, 8 percent to the Social Security Corporation,
and 1 percent to the Jordan Telecom Employee Provident Fund,
the Government recently put up an additional 15% for sale via
an Initial Public Offering that closes on October 24.
Speculation on whether or not France Telecom will exercise
its option to buy a further 11% of JTC has been tempered by
the French company's announcement of a $12 billion loss for
the first half of 2002. Under its new management, JTC has
succeeded in substantially reducing waiting time for new
lines and has expanded penetration. Jordan Telecom's
fixed-line monopoly is set to expire in 2005, and a current
TDA-funded feasibility study is expected to show the need for
another market entrant to stimulate competition, improve
quality, and reduce costs, among the highest in the region.
Likewise, another feasibility study is likely to demonstrate
room for a third mobile operator, along side JT-owned
Mobilecom and Fastlink, a subsidiary of the Egyptian
conglomerate Orascom. Mobile phone penetration has overtaken
fixed-line use in Jordan, with over 1.1 million mobile phones
currently in use and demand increasing. The mobile duopoly
expires in 2004.

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COMMUNITY ICT CENTERS
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6. (U) The Jordan Information Technology Community Centers
(JITCC) are small centers located throughout the country to
provide low-cost access to computers and computer related
technology. To date, 40 of the planned 68 centers have been
established. Open to all Jordanians, the centers provide
training courses that are tailored to the specific needs of
groups and individuals in the community. Originally funded
by the UNDP, these centers are now funded by the King
Abdullah Fund and will receive technical assistance from
USAID's AMIR program and the Case Foundation. USAID is
currently planning to conduct a sustainability study, which
it expects to conclude in six months. The centers are
successful in that they provide IT access and training
previously unavailable in the more remote regions of Jordan.
The centers also host NetCorps, a training program designed
to field youth volunteers at the IT centers for up to six
months, and is supported by USAID. INJAZ, the Jordanian
Junior Achievement Association, is using the centers for IT
access and training. Computer Clubhouse is an IT program for
kids based at the centers.


7. (U) Business development centers, known as Enterprise
Development Centers (EDCs) in Jordan, are co-located with
the community ICT centers where appropriate. The centers are
funded locally. Business consultants are available through
the EDCs to offer support services and consultation also with
AMIR program support. The EDCs are not yet self-sustaining.
Other activities under consideration include a comprehensive,
integrated, competitive placement based Women's
Entrepreneurial Development Center, a Women in ICT program
which aims to increase employment opportunities for women
through training on market needs, improving access to IT
technology, establishing linkages with IT companies, and a
review of Sector Based Training focusing training needs on
certain sectors with identified growth potential.

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PRIVATE SECTOR NEEDS
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8. (U) The REACH program, the Jordanian government's
strategy for developing its IT sector, and INTAJ have created
an environment in which business and government work together
to develop a globally competitive IT industry in Jordan.
Having said that, a recent independent study of Jordan's IT
industry commissioned by the MOICT and conducted by IT
consulting firm McConnell International (REF A) asserted that
the needs of small and medium enterprises are not being
adequately addressed by the government or the private sector.
The report also states the ICT adoption rate among
businesses is low, as is the rate of credit card penetration
necessary for the growth of e-commerce. While training
opportunities are increasing, via AMIR, INTAJ, and private
sector players such as INTEL and Microsoft, businesses
complain of a dearth of technically savvy IT professionals
with management and marketing skills. In addition, the high
cost and low quality of international service has been a
deterrent to foreign investment and participation in global
e-commerce.

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INTERNET CAFES
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9. (U) Internet cafes are prevalent in Jordan. Privately
owned, these small shops typically contain 4 to 5 PCs and
generate small profits. Under regulations now being more
zealously enforced by the government, cafes must register IDs
for users, as well as log sites visited and maintain the log
for 60 days pending inspection by officials of the Ministry
of the Interior, or risk paying large fines. A number of
cafes, most recently in Irbid, have recently been closed due
to their inability to pay these fines.

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ICT PROJECTS
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10. (U) The primary vehicle for USAID support to the ICT
sector in Jordan is the AMIR Program (Achievement of
Market-Friendly Initiatives and Results). The objective of
AMIR's ICT initiatives is to support Jordan in becoming a
leading regional ICT hub and a competitive exporter of ICT
products and services. These initiatives promote increased
ICT access and connectivity for all Jordanians, utilize IT to
facilitate the provision of government service, promote
increased business growth and employment in the sector, and
helps upgrade human resources with respect to IT.


11. (U) Jordan,s IT Industry association, INTAJ, has
received grant support from USAID for staff training,
e-commerce workshops, lobbying in favor of IT-related
reforms, human resources development, and other projects. In
addition, INTAJ, with the support of USAID, held the
successful ICT Forum (REF A) in Amman September 30-October 1.
The Forum, which attracted more than 1200 participants from
the Middle East, Europe, Asia and the United States, featured
INTEL CEO Craig Barrett, John Gage of Sun Microsystems, and
George Vradenburg form AOL-Time Warner as keynote presenters.


12. (U) USAID has assisted the government in producing the
REACH initiative, Jordan's national IT strategy. The plan
calls for the creation of 20,000 IT-related jobs, $550
million in IT exports, and $150 million in FDI, all by 2004.
With UNDP assistance, the Ministry of Education has invested
$67 million in an ongoing program to provide IT training to
6000 teachers. The Ministry of Information Communications
and Technology (MOICT) has also introduced the Connecting
Jordanians initiative, a national campaign to improve and
ensure Internet access throughout the Kingdom.


13. (U) The Jordanian Government's e-government strategy is
also supported by USAID through the AMIR program. A number
of infrastructure projects have been initiated, including the
secure government network government E-mail System, Operation
and Data Center, and portal website. Other e-services, such
as the Business Registration unit at the Ministry of Industry
and Trade and the Investment Promotion Information System are
expected to be ready in early 2003. In addition, an
e-government Program Management Office (PMO) has been
established to coordinate e-government initiatives and to
implement other projects across the public sector.


14. (U) The MOICT has embarked on the ambitious task of
training government employees in computer literacy. To this
end, the Ministry has adopted UNESCO,s International
Computer Drivers Licensing (ICDL) program as an effective
vehicle for the promotion of computer literacy in Jordan.
Likewise, to enable the use of e-Government applications and
services supported by AMIR, ICTI has provided management,
communication, logistical and other local support to
facilitate the provision of the ICDL Program.


15. (U) USAID's ICT support also extends to enhancing
computer education in universities, expanding the ministry of
Education's e-Learning Network, and providing technical
assistance to encourage outreach and innovation and increased
access throughout primary and secondary schools. In 2001,
AMIR and the Canadian International Development Agency (CIDA)
began working with the MoICT, Intaj, and other stakeholders
to develop a strategy for connecting Jordanians to the global
information superhighway, now known as the Connecting
Jordanians Initiative (CJI). USAID has worked closely with
the stakeholders involved in CJI to develop and implement a
comprehensive connectivity business plan for Jordan. The
first draft of this business plan was completed and presented
at the end of August 2002.


16. (U) In addition to USAID-funded assistance, the EU is
providing some industry-level support. In the past, the
British, World Bank and EU have been involved in establishing
the TRC. The UNDP is supporting the development of the
Jordan Information Technology Community Centers. In addition,
CIDA is working closely with the Ministry of Education (MOE)
in supporting the Ministry's e-learning strategic framework.
The Japan International Cooperation Agency (JICA) is also now
considering major support for the rollout of the MOE,s
e-learning network. There are also a number of U.S.
corporate sponsors of Jordan,s ICT initiatives including
Microsoft, Cisco, Sun Microsystems, Hewlett Packard and
Oracle. Given the important role of such firms in developing
Jordan,s ICT industry, strategic alliances involving the
GOJ, donors and U.S. ICT firms are becoming increasingly
important.





GNEHM