Identifier
Created
Classification
Origin
04ABUDHABI1179
2004-04-18 11:03:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:  

UAEG TO COLLECT ROYALTIES FROM NEW TELECOM

Tags:  ECPS AORC TC 
pdf how-to read a cable
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Diana T Fritz 03/15/2007 02:53:26 PM From DB/Inbox: Search Results

Cable 
Text: 
 
 
UNCLASSIFIED

SIPDIS
TELEGRAM April 18, 2004


To: No Action Addressee 

Action: Unknown 

From: AMEMBASSY ABU DHABI (ABU DHABI 1179 - ROUTINE) 

TAGS: ECPS, AORC 

Captions: None 

Subject: UAEG TO COLLECT ROYALTIES FROM NEW TELECOM SERVICE 
 PROVIDERS 

Ref: None 
_________________________________________________________________
UNCLAS ABU DHABI 01179

SIPDIS
CXABU:
 ACTION: ECON 
 INFO: AMB DCM P/M POL 
Laser1:
 INFO: FCS 

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: A/DCM: HOLSIN-WINDEC
DRAFTED: ECON: CCRUMPLER
CLEARED: ECON: OJOHN

VZCZCADI983
RR RUEHC RUEHZM RUEHGV RUEHDI
DE RUEHAD #1179 1091103
ZNR UUUUU ZZH
R 181103Z APR 04
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 3993
INFO RUEHZM/GCC COLLECTIVE
RUEHGV/USMISSION GENEVA 0547
RUEHDI/AMCONSUL DUBAI 3940
UNCLAS ABU DHABI 001179 

SIPDIS

SENSITIVE

DEPT FOR EB/CIP AND IO/T
DEPT PASS NTIA AND FCC

E.O. 12958: DECL: N/A
TAGS: ECPS AORC TC
SUBJECT: UAEG TO COLLECT ROYALTIES FROM NEW TELECOM
SERVICE PROVIDERS

REF: ABU DHABI 1155

UNCLAS ABU DHABI 001179

SIPDIS

SENSITIVE

DEPT FOR EB/CIP AND IO/T
DEPT PASS NTIA AND FCC

E.O. 12958: DECL: N/A
TAGS: ECPS AORC TC
SUBJECT: UAEG TO COLLECT ROYALTIES FROM NEW TELECOM
SERVICE PROVIDERS

REF: ABU DHABI 1155


1. (U) Following the April 12 announcement that the UAEG
would end Etisalat's monopoly of the telecom sector (ref),
the UAEG revealed today that it would hold a 60 percent
equity stake in any new telecom service provider that
enters the UAE market. The announcement followed the first
meeting April 17 of the new Supreme Committee overseeing
the telecom liberalization program and presided by Minister
of State for Finance Dr. Mohammed Khalfan bin Khirbash.
The Committee also discussed setting up a separate and
independent telecom regulatory authority akin to the FCC in
the United States.


2. (SBU) The watershed decision to open the UAE telecom
sector to other providers was announced this week
coincidentally as MEPI-funded contractors conducted
training for the GCC states plus Yemen on Trade in Services
in Abu Dhabi. A Ministry of Communications employee
seconded to Etisalat who attended the seminar told Econoff
that even Ministry of Communications and Etisalat employees
were surprised by the decision, and heard about it through
the newspapers. He posited that the UAEG would license new
GSM and internet service providers (ISP) first, but require
them to use Etisalat's existing network infrastructure.


3. (SBU) Comment: The federal budget relies, in large
part, on revenue transfers from the two largest emirates of
Abu Dhabi and Dubai. Etisalat traditionally has
represented the single major independent source of income
for the UAE federal government. The Supreme Committee's
decision to require new telecom providers to pay royalties
to the federal government probably is an attempt to strike
a balance between liberalization of the telecom sector and
the need at the federal-level for an independent revenue
stream. End comment.

Wahba