COMPANY SHORT-LISTED FOR RADIO TRUNKING BID IN

C O N F I D E N T I A L JERUSALEM 004713

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: DECL: 11/01/2016
TAGS: ECPS EFIN PGOV PREL KWBG
SUBJECT: COMPANY SHORT-LISTED FOR RADIO TRUNKING BID IN
WEST BANK/GAZA WANTS TO USE MOTOROLA EQUIPMENT; OFAC
LICENSE MAY BE REQUIRED

REF: JERUSALEM 4239

Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d).


1. (C) The Palestinian Authority Ministry of
Telecommunications and Information Technology is completing
its selection of the winner for a radio trunking provider in
the West Bank/Gaza, one using push-to-talk radio technology.
Former PA Telecommunications Minister Sabri Seidam told
EconChief that the current PA Telecommunications Minister
Jamal al-Koudari had earlier confirmed to him that Jordanian
company Xpress is at the top of the short-list, if it can
convince the Israeli government (GOI) to allow it to use the
800 megahertz (MHz) frequency that its preferred Motorola
iDEN technology requires. If Xpress cannot get the GOI to
concur by November 23, then the PA Telecommunications
Ministry will select the next company on the short-list.
That company plans to use technology that does not require
the GOI to allocate a new frequency since it will use the 400
MHz frequency which the PA already has permission to use.


2. (C) While Motorola has filed an Advocacy Request with the
Commerce Department for USG advocacy on its behalf with the
Israeli government for the frequency allocation, Motorola's
sale of equipment to Xpress may require an OFAC license. The
Motorola equipment will be used for a business that Xpress
will operate, if it is granted the frequency by the GOI and
once it pays the PA Treasury approximately USD 3.1 million in
licensing fees, according to Seidam.


3. (C) Chief PLO Negotiator Sa'eb Erekat passed to the
Consul General November 1 a copy of his October 29 letter to
Israeli Coordinator for Government Activities in the
Territories (COGAT) General Mishlev that requests the
allocation of the 806-811 MHz/851-856 MHz paired frequencies.
The letter references Article 36 of the Interim Agreement
(Annex III, Protocol on Civil Affairs) that "the future needs
for frequencies shall be agreed upon by the two sides. To
that end, the Palestinian side shall present its requirements
through the JTC (Joint Technical Committee) which must
fulfill those requirements within a period not exceeding one
month."


4. (C) FCS Tel Aviv informed Motorola that the company must
seek guidance from OFAC before Embassy Tel Aviv can provide
USG advocacy. Concurrently, FCS Tel Aviv informed the
Treasury Department about Motorola's request.


5. (C) Comment: While we want to be supportive of commercial
opportunities for U.S. companies, we do not favor a
transaction that could put significant resources into the
Treasury of the Hamas-led PA government. We urge Washington
policymakers to review a specific OFAC license request from
Motorola before a decision is made on USG advocacy. End
comment.


6. (U) This cable was cleared by FCS Tel Aviv.
WALLES