UAE TELECOM UPDATES

UNCLAS ABU DHABI 001775

SIPDIS

SENSITIVE
SIPDIS

STATE PLEASE PASS TO USTR

E.O. 12958: N/A
TAGS: ECPS ECIN PHUM ECON AE
SUBJECT: UAE TELECOM UPDATES

REF: ABU DHABI 00046


1. (SBU) Summary. On April 19, econoff met with Mohammed
Gheyath, Technical Affairs Manager of the Telecommunication
Regulatory Authority (TRA),to discuss UAE telecom
initiatives. Gheyath said the TRA is planning to allow a
third internet service provider (ISP) in the UAE and is also
considering approving the use of voice over internet protocol
(VOIP). When pressed on a likely date of inception for a
third ISP as well as VOIP services, Gheyath said he expects
the new services "shortly." Econoff asked about the recently
announced second telecom company, Emirates Integrated
Telecommunications Company (EITC). Gheyath said the TRA has
granted a license to EITC and the company can begin business
whenever it is ready, probably this summer. Gheyath also
said all companies covered by the new company, including
those in the free zones, will likely be regulated by the TRA.
End summary.
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TRA considers allowing a third ISP as well as VOIP
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2. (SBU) Mohammed Gheyath, Technical Affairs Manager of the
TRA, told econoff the TRA is considering allowing a third ISP
to meet the growing demand for internet services in the UAE.
Although the TRA is likely to approve a license for a third
ISP, it is not considering offering more telecom licenses.
Currently, there are only two telecom operators in the UAE,
Etisalat (Emirates Telecommunication Corporation),which has
been in business for over thirty years and the recently
announced EITC, which is expected to begin business this
summer. (Note: Currently, government owned Etisalat
provides services to virtually all of the UAE --with the
exception of some free zones-- and the federal government
derives a significant source of revenue from the company.
Etisalat is expanding its services to other countries as
well. The UAEG also has a stake in EITC, originally owning
50%, but later divesting itself of some shares. End note.)


3. (SBU) Gheyath said that the TRA is expected to approve
VOIP services, but the TRA first needs to make sure that the
necessary infrastructure is in place. Gheyath explained that
the current electricity infrastructure in the UAE needs to be
improved to ensure that VOIP will work properly. He also
said that there are concerns about using VOIP to call
emergency services (999) in the UAE since emergency operators
cannot pinpoint a caller's location if the call is made with
VOIP. (Comment: Commercially available VOIP services -- such
as Vonage and Skype -- work without problems in the UAE.
However, the TRA currently blocks the downloading of VOIP
programs, such as Skype. The government has closed entities
selling VOIP as a commercial service. End comment.)
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TRA looking at ways to reduce "censorship"
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4. (SBU) Econoff asked Gheyath about how the second telecom
company, EITC, would be "censored" and whether it would be
subject to the same regulations as government owned Etisalat.
(Note. TECOM, which is part of EITC, currently provides
uncensored internet access to some of the free zones in
Dubai. End note.) Gheyath said he prefers to use the word
"regulate" instead of "censor." He explained that the TRA is
studying the way it regulates internet companies. Currently,
a committee -- made up of two members of the Abu Dhabi
government, two members of the Dubai government and two
members from the private sector -- is studying ways to
regulate all areas, including the free zones. Gheyath also
said that the revised regulations "would be more in line with
U.S. laws, i.e., restricting only pornography and criminal
activities."
SISON