TF1Z01: JORDAN TELECOM REGULATOR NIJEM ON THE

UNCLAS SECTION 01 OF 02 AMMAN 002196

SIPDIS

SENSITIVE

TREASURY FOR OASIA--MARSHALL MILLS, WON CHANG
USDOC FOR 4520/ITA/MAC/ONE/COBERG

E.O. 12958: N/A
TAGS: ECPS EINV ECON JO
SUBJECT: TF1Z01: JORDAN TELECOM REGULATOR NIJEM ON THE
RIGHT TRACK

SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE ACCORDINGLY


1. (SBU) SUMMARY: Muna Nijem, the head of the Jordanian
Telecommunications Regulatory Commission (TRC) concluded a
week of meetings recently in Washington with FTC, DOS, and
World Bank officials in which she emphasized her commitment
to make the TRC, with USG assistance, the strong body the
sector needs as it moves toward market liberalization over
the next two years. Tracking a debate now taking place
within the USG over the makeup of the Iraqi telecom
infrastructure, Nijem expressed her hope that the Jordanian
telecom sector might play a role in post-war Iraq. END
SUMMARY


2. (SBU) We met with Nijem April 4 following her return from
Washington to get a read-out on her meetings of introduction
with Ambassador Gross, FTC Chairman Powell, Commissioner
Copps, and private sector officials. She described her trip
as a "wonderful, productive visit," and said she found great
support for her efforts and encouragement that the TRC was
moving the sector in the right direction.

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MOBILE MARKET
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3. (SBU) Nijem was most enthusiastic about the current
debate in Washington regarding telecom infrastructure in
post-war Iraq and the possibility that Jordan might play an
important commercial role in this regard. She said the
current tenor of the debate, which revolves around whether
CDMA (Code Division Multiple Access, the Qualcomm-developed
mobile technology dominant in the U.S.) or GSM (Global System
for Mobile, developed in Europe and prevalent through most of
the world) becomes the technology of choice for Iraq's
primitive telecom sector, seemed to be moving in favor of
CDMA. She noted that House Resolution 1441, still in
committee, requires the use of CDMA technology for the
provision of wireless service in contracts awarded to provide
Iraqi assistance. GSM, however, is currently the sole
wireless communication technology provided in the region.
Iraq has no mobile phone network at present, and its
fixed-line network is state-owned.


4. (SBU) Nijem said that Jordan is well-placed to become a
regional leader in telecommunications following sector
liberalization in 2004, when the current mobile duopoly ends.
She said that while both current mobile licenses mandate the
use of GSM, she would like to use liberalization to make the
market technologically neutral and would welcome bids by CDMA
operators on a third license when it is made available some
time this year. This would enable Jordan to build on the
probable establishment of the CDMA protocol in Iraq and make
it more attractive to investors seeking a wider regional
niche. Drawing on her previous experience as Director of
Next Generation Technologies for Motorola, Nijem expressed a
strong preference for CDMA, and said that a Jordanian-Iraqi
CDMA presence, based in Jordan, could be "a showcase" for
innovation and development.

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FCC AND STATE MEETINGS A HIT
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5. (SBU) Nijem said she had a "wonderful visit" with FCC
Chairman Powell. She said that Powell was "fully engaged"
during the 90 minute meeting, and was interested in "lending
his support on some issues, such as spectrum management,
licensing procedures, capacity building and ethics." She
said Powell promised support in the form of FCC staff
assistance and whatever other technical assistance the FCC
could provide. Nijem said that she proposed a video
conference with his staff for later in April, the first in a
series of such video conferences she said would "further the
collaboration" between the FCC and the TRC.


6. (SBU) Likewise, Nijem saw her visit with Ambassador Gross
and Commissioner Copps as "very positive and encouraging."
She was particularly gratified by Gross's offer of technical
assistance to the TRC, which she said could take the form of
help in locating funding for FCC travel to meet with TRC
counterparts, training assistance, and support for capacity
building. She said that this meeting also laid the
groundwork for continued cooperation between the TRC and the
USG.

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INTERNATIONAL CALL QUALITY: STILL A PROBLEM
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7. (SBU) In separate meetings with AT&T and Worldcom, Nijem
strove to find a way to improve the quality of international
telecommunications traffic between the U.S. and Jordan.
Worldcom Senior VP Michael Sauer agreed to work with Jordan
Telecom (JT) on reducing rates paid to Jordan Telecom in
exchange for an increase by Worldcom in the amount of traffic
it sends directly to (JT). AT&T Managing Director for
International Settlements Sharif Fahmy expressed similar
interest in increasing direct circuit traffic to Jordan based
on a reduction of JT interconnection rates. Fahmy explained
to Nijem, however, that AT&T's biggest concerns were JT's
high rates for calls to mobiles, which he said were much
higher than other alternatives it had for termination. She
said she would work with JT and Fastlink, Jordan's other
mobile carrier, in an effort to bring rates down closer to
the level charged by illegal, lower quality providers.

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COMMENT
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8. (SBU) As Jordan's new chief telecom regulator, Nijem
continues to show savvy and determination in enlisting
American expertise in assisting the TRC with such thorny
issues as termination rates, new mobile licenses, and
regulatory ethics. As she observes, mobile market
liberalization offers an excellent opportunity for Jordan to
become a regional telecom leader, one that is technology
neutral and fosters a truly open market and paving the way
for fixed-line liberalization in 2005. Post remains
committed to offer her support, technical as well as moral,
as she works to establish a strong and independent TRC.
GNEHM