TELECOMS: CHAIRMAN ADBULLAH SALEH SAYS CMC TO KEEP

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 004301

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/19/2016
TAGS: ECON EINV ETRD IZ
SUBJECT: TELECOMS: CHAIRMAN ADBULLAH SALEH SAYS CMC TO KEEP
REGULATING FUNCTION UNDER DRAFT LAWS

REF: STATE 184172

Classified By: Economic Minister Counselor Daniel Weygandt, Reasons 1.4
(b,d)


1. (C) SUMMARY. Chairman Abdullah Saleh of the Essential
Services Committee in the Council of Representatives reported
that his committee has been actively developing three
telecommunications laws. Under the proposed CMC Law, the
agency would retain the responsibility for allocating and
regulating frequencies, but would face a significant
restructuring. The function of monitoring the media for
content and sanctioning violators would be split off from the
CMC and carried out by a new organization. Saleh agreed with
our suggestion that the regulatory function should be kept
separate from an organization that is involved in providing
telecoms services to avoid conflict of interest. END SUMMARY.


2. (C) On Nov. 17, IRMO Senior Consultant for Communications
and Econoff discussed the development of telecommunications
legislation with Chairman Abdullah Saleh of the Essential
Services Committee in the Council of Representatives (COR).
Chairman Saleh reported that his committee has been actively
developing three separate laws. The first law, a
Telecommunications Law, seeks to define the distinct mandates
of the Ministry of Communications (MoC) and the
Communications and Media Commission (CMC),and the other two
define the structure and function of those organizations.
The Chairman added that significant drafting had already
taken place on the Telecommunications and CMC Laws, but they
still await input from the ministry to push ahead with
drafting on the MoC Law. They have solicited input from
range of ministries as well, including Defense and Interior.


3. (C) Under the proposed CMC Law Saleh outlined, the agency
would retain the responsibility for allocating and regulating
frequencies, but would be restructured significantly. The
commissioners, board would continue to consist of nine
members, with one commissioner, elected by the board, serving
as chairman. He intimated that the COR would have a role in
licensing as well, but declined to offer details.


4. (C) Unlike the current arrangement, however, there would
also be a General Director at the CMC, whose function is
management of the organization and implementation of policies
set by the commissioners. The purpose of this arrangement,
Saleh noted, is to ensure separation of the policy
development from the function of running the organization.
Saleh declined to elaborate on whether he expected the
current CMC CEO, who under the present arrangement fulfils
both roles, would continue to serve in the new organization.


5. (C) Saleh added that under the draft, the function of
monitoring the media for content and sanctioning violators
would be split off from the CMC and carried out by a new
organization. He said this is because the functions of
regulating communications channels and regulating content are
very distinct functions, and the task of monitoring media in
Iraq for speech that incites violence has grown.


6. (C) He agreed with our suggestion that the regulatory
function should be kept separate from an organization that is
involved in providing telecoms services to avoid a conflict
of interest. Under the draft, two commissioners would be MoC
staff seconded to the CMC, but Saleh emphasized that those
individuals would be barred from serving as the chairman. He
noted that their role is to ensure a constructive flow of
information between the MoC and CMC.


7. (C) Saleh said he expects to be able to move quickly to
pass the laws, adding that he believes they can be finalized
and passed by the CoR within two to three weeks. He thus
hopes there will not be a need to further extend the existing
mobile licenses. Saleh, an ethnic Kurd, also stressed that
the laws would apply to all of Iraq, and not make
distinctions for regions, including the Kurdish-majority
north.


8. (C) COMMENT. Saleh clearly understands the issues we
raised about the need for effective telecoms regulation that
independent from government-owned service providers. The
legal structure he described reflects this understanding, and
is a positive sign. Adding the General Director role to the
CMC will provide much needed balance, a renewed focus on
management of the CMC, and reduce the likelihood of
corruption. Saleh,s timetable for passing the laws seems
over-ambitious, however, especially since the MoC has yet to
provide the requested input needed to finish the draft MoC
law. It may be that this indicates the MoC, which was
rumored to have picked up the licensing function in earlier
drafts of the law, may be stalling in an attempt to reorient
the debate on the division of power between it and the CMC.

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Despite his comment on the laws applying to the entire
country, it seems unlikely they could be effectively enforced
in the Kurdish-majority north, given the on-going development
of a distinct regulatory regime in that area. END COMMENT.

SPECKHARD