Identifier
Created
Classification
Origin
06JERUSALEM4239
2006-09-20 14:46:00
CONFIDENTIAL
Consulate Jerusalem
Cable title:
KUWAITI COMPANY GRANTED SECOND PALESTINIAN MOBILE
how-toVZCZCXYZ0004 OO RUEHWEB DE RUEHJM #4239 2631446 ZNY CCCCC ZZH O 201446Z SEP 06 FM AMCONSUL JERUSALEM TO RUEHC/SECSTATE WASHDC IMMEDIATE 5049 INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEHBS/USEU BRUSSELS PRIORITY
C O N F I D E N T I A L JERUSALEM 004239
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/MAHER/STEINGER;
NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR
SZUBIN/LOEFFLER/NUGENT/HIRSON
E.O. 12958: DECL: 09/20/2016
TAGS: ECPS EINV PGOV KWBG IS
SUBJECT: KUWAITI COMPANY GRANTED SECOND PALESTINIAN MOBILE
PHONE LICENSE
REF: JERUSALEM 1286
Classified By: Acting Principal Officer Thomas Duffy, Reasons 1.4 (b) a
nd (d).
C O N F I D E N T I A L JERUSALEM 004239
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/MAHER/STEINGER;
NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR
SZUBIN/LOEFFLER/NUGENT/HIRSON
E.O. 12958: DECL: 09/20/2016
TAGS: ECPS EINV PGOV KWBG IS
SUBJECT: KUWAITI COMPANY GRANTED SECOND PALESTINIAN MOBILE
PHONE LICENSE
REF: JERUSALEM 1286
Classified By: Acting Principal Officer Thomas Duffy, Reasons 1.4 (b) a
nd (d).
1. (SBU) PA Minister of Telecommunications Jamal al-Khoudari
announced publicly September 18 that the Kuwaiti
telecommunications company Wataniya Telecom has been awarded
the second mobile phone operating license for the West Bank
and Gaza. (Note: Palestine Cellular Communications Ltd.
(Jawwal) had been the sole provider of cellular phone service
in the West Bank and Gaza since 1999. The PA issued the
tender March 28, two days before the new Hamas-led cabinet
took office (reftel). End note.) Wataniya reportedly bid
USD 355 million for the license, and agreed to pay seven
percent of the new provider's annual income to the PA
Treasury, according to local press reports. Al-Khoudari said
that Wataniya will have a 40 percent share in the new
cellular company. The Palestine Investment Fund (PIF) will
own a 30 percent stake, and 30 percent of the shares will be
made available to the public through the Palestinian
Securities Exchange (PSE).
2. (C) PA Presidential Economic Advisor and PIF CEO Mohammed
Mustafa told EconChief September 19 that Wataniya is not
expected to pay the USD 355 million to the Treasury until the
Israeli government allocates the necessary frequencies for
the second cellular provider. He acknowledged that this was
unlikely to occur under a Hamas-led government. He added
that the money would go to the PA Treasury, but the PIF
planned to request a large portion as compensation for PIF
disbursements on behalf of the PA for the last two years.
Whatever portion the PIF is able to obtain will likely be
used to finance PIF's investment obligations in the new
company, Mustafa said.
3. (SBU) Jawwal's parent company, Palestinian
Telecommunication Co. (PalTel),placed ads in the main
Arabic-language daily newspapers September 19 congratulating
Wataniya and the Palestinian people and also noting that the
establishment of a second cellular company is good for
competition and transparency.
DUFFY
SIPDIS
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/MAHER/STEINGER;
NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR
SZUBIN/LOEFFLER/NUGENT/HIRSON
E.O. 12958: DECL: 09/20/2016
TAGS: ECPS EINV PGOV KWBG IS
SUBJECT: KUWAITI COMPANY GRANTED SECOND PALESTINIAN MOBILE
PHONE LICENSE
REF: JERUSALEM 1286
Classified By: Acting Principal Officer Thomas Duffy, Reasons 1.4 (b) a
nd (d).
1. (SBU) PA Minister of Telecommunications Jamal al-Khoudari
announced publicly September 18 that the Kuwaiti
telecommunications company Wataniya Telecom has been awarded
the second mobile phone operating license for the West Bank
and Gaza. (Note: Palestine Cellular Communications Ltd.
(Jawwal) had been the sole provider of cellular phone service
in the West Bank and Gaza since 1999. The PA issued the
tender March 28, two days before the new Hamas-led cabinet
took office (reftel). End note.) Wataniya reportedly bid
USD 355 million for the license, and agreed to pay seven
percent of the new provider's annual income to the PA
Treasury, according to local press reports. Al-Khoudari said
that Wataniya will have a 40 percent share in the new
cellular company. The Palestine Investment Fund (PIF) will
own a 30 percent stake, and 30 percent of the shares will be
made available to the public through the Palestinian
Securities Exchange (PSE).
2. (C) PA Presidential Economic Advisor and PIF CEO Mohammed
Mustafa told EconChief September 19 that Wataniya is not
expected to pay the USD 355 million to the Treasury until the
Israeli government allocates the necessary frequencies for
the second cellular provider. He acknowledged that this was
unlikely to occur under a Hamas-led government. He added
that the money would go to the PA Treasury, but the PIF
planned to request a large portion as compensation for PIF
disbursements on behalf of the PA for the last two years.
Whatever portion the PIF is able to obtain will likely be
used to finance PIF's investment obligations in the new
company, Mustafa said.
3. (SBU) Jawwal's parent company, Palestinian
Telecommunication Co. (PalTel),placed ads in the main
Arabic-language daily newspapers September 19 congratulating
Wataniya and the Palestinian people and also noting that the
establishment of a second cellular company is good for
competition and transparency.
DUFFY