Identifier
Created
Classification
Origin
04ABUDHABI1155
2004-04-14 13:56:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:
UAE opens its telecommunications sector
how-tonull Diana T Fritz 03/15/2007 02:54:04 PM From DB/Inbox: Search Results Cable Text: UNCLASSIFIED SIPDIS TELEGRAM April 14, 2004 To: No Action Addressee Action: Unknown From: AMEMBASSY ABU DHABI (ABU DHABI 1155 - ROUTINE) TAGS: ETRD Captions: None Subject: UAE OPENS ITS TELECOMMUNICATIONS SECTOR Ref: None _________________________________________________________________ UNCLAS ABU DHABI 01155 SIPDIS CXABU: ACTION: ECON INFO: DCM P/M AMB POL Laser1: INFO: FCS DISSEMINATION: ECON CHARGE: PROG APPROVED: AMBASSADOR:MMWAHBA DRAFTED: ECON: OJOHN, CLEARED: A/DCM: HOLSIN-WINDECKER, CGD:JDAVIS/MCARVER VZCZCADI909 RR RUEHC RUEHZM DE RUEHAD #1155 1051356 ZNR UUUUU ZZH R 141356Z APR 04 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 3974 INFO RUEHZM/GCC COLLECTIVE
UNCLAS ABU DHABI 001155
SIPDIS
SENSITIVE
DEPT FOR NEA, NEA/ARP, EB
DEPT PASS TO USTR - JASON BUNTIN
E.O. 12958: N/A
TAGS: ETRD WTO USTR TC
SUBJECT: UAE opens its telecommunications sector
UNCLAS ABU DHABI 001155
SIPDIS
SENSITIVE
DEPT FOR NEA, NEA/ARP, EB
DEPT PASS TO USTR - JASON BUNTIN
E.O. 12958: N/A
TAGS: ETRD WTO USTR TC
SUBJECT: UAE opens its telecommunications sector
1. (U) On April 12, UAE President Zayed bin Sultan Al-
Nahayan issued Federal Decree 3 of 2004 "organizing the
telecommunications sector." According to the UAE's official
news media, the decree revokes Emirates Telecommunications
Corporation's (Etisalat) monopoly rights and authorizes new
companies to apply for licenses. In a second decree,
President Zayed established a "Higher Supervisory Committee"
to oversee the telecommunications sector and stipulated that
this committee would have the authority to grant licenses to
new firms. President Zayed also appointed Minister of State
for Finance and Industry Dr. Mohammed Khalfan bin Khirbash
to chair the committee and appointed a representative from
the President's court and the Vice President's court to the
committee. (Note: the Vice President is the ruler of
Dubai.) Officials at the Ministry of Finance and Industry
confirmed the news, but were unable to give any more
details.
2. (U) The decision also set up an authority to issue
implementing regulations and to monitor services. We don't
have any further details yet on how new licenses will be
issued, although press reports say that they will be issued
in accordance with the UAE companies' law.
3. (SBU) Comment: This welcome decision caught a number of
people off guard, and appears to have been made at very
senior levels of the government. The breakdown of the
committee is interesting. Dr. Khirbash is a forward leaning
technocrat. Ahmed Mohammed Al-Hamiri represents the
President's Office and Ahmed Abdullah bin Bayat represents
the ruler of Dubai (the second most influential emirate and
the one emirate other than Abu Dhabi with a veto over
federal legislation). Etisalat is a successful company and
a revenue earner for the federal government. It is 60%
government owned and, as a monopoly, is required to remit
half of its profits to the federal government. The actual
impact of this decision on the telecommunications sector in
the UAE will depend on how the decree is implemented.
Nevertheless, this is potentially a significant step forward
for the UAE and we believe it reflects the input of Dr.
Khirbash, who is a major advocate of reform. We hope that
more details will be made available by the April 26-27 TIFA
Council Meeting.
WAHBA
SIPDIS
SENSITIVE
DEPT FOR NEA, NEA/ARP, EB
DEPT PASS TO USTR - JASON BUNTIN
E.O. 12958: N/A
TAGS: ETRD WTO USTR TC
SUBJECT: UAE opens its telecommunications sector
1. (U) On April 12, UAE President Zayed bin Sultan Al-
Nahayan issued Federal Decree 3 of 2004 "organizing the
telecommunications sector." According to the UAE's official
news media, the decree revokes Emirates Telecommunications
Corporation's (Etisalat) monopoly rights and authorizes new
companies to apply for licenses. In a second decree,
President Zayed established a "Higher Supervisory Committee"
to oversee the telecommunications sector and stipulated that
this committee would have the authority to grant licenses to
new firms. President Zayed also appointed Minister of State
for Finance and Industry Dr. Mohammed Khalfan bin Khirbash
to chair the committee and appointed a representative from
the President's court and the Vice President's court to the
committee. (Note: the Vice President is the ruler of
Dubai.) Officials at the Ministry of Finance and Industry
confirmed the news, but were unable to give any more
details.
2. (U) The decision also set up an authority to issue
implementing regulations and to monitor services. We don't
have any further details yet on how new licenses will be
issued, although press reports say that they will be issued
in accordance with the UAE companies' law.
3. (SBU) Comment: This welcome decision caught a number of
people off guard, and appears to have been made at very
senior levels of the government. The breakdown of the
committee is interesting. Dr. Khirbash is a forward leaning
technocrat. Ahmed Mohammed Al-Hamiri represents the
President's Office and Ahmed Abdullah bin Bayat represents
the ruler of Dubai (the second most influential emirate and
the one emirate other than Abu Dhabi with a veto over
federal legislation). Etisalat is a successful company and
a revenue earner for the federal government. It is 60%
government owned and, as a monopoly, is required to remit
half of its profits to the federal government. The actual
impact of this decision on the telecommunications sector in
the UAE will depend on how the decree is implemented.
Nevertheless, this is potentially a significant step forward
for the UAE and we believe it reflects the input of Dr.
Khirbash, who is a major advocate of reform. We hope that
more details will be made available by the April 26-27 TIFA
Council Meeting.
WAHBA