MOTOROLA EYES RADIO TENDER

UNCLAS MUSCAT 000384

SIPDIS

SENSITIVE
SIPDIS

STATE FOR NEA/ARPI, NEA/RA, EB/CBA (BBEHRENS)
COMMERCE FOR ADVOCACY CENTER (CJAMES)

E.O. 12958: N/A
TAGS: BEXP ETRD ECPS PGOV PINR MU
SUBJECT: MOTOROLA EYES RADIO TENDER

Contains sensitive buisness information. Please protect
accordingly.

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SUMMARY
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1. (SBU) Motorola expects to be one of three bidders for an
upcoming tender for a $40-60 million national radio system in
Oman. Motorola will be requesting USG advocacy in support of
its bid. End summary.

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FAST TENDER
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2. (SBU) On March 6, Econoff discussed Motorola's prospects
as a bidder on an upcoming Oman Internal Security Services
(ISS) tender for a national radio system with Middle East
Regional Manager Alan Roper. Roper predicted the ISS would
fast-track the project by releasing bid information in 1-2
weeks, followed by a deadline of 3-4 weeks thereafter. Roper
was unclear whether this specific tender would be for only
the first phase, to cover territory from Muscat to Buraimi
(on the UAE border),or for the whole country. He estimated
the overall cost to be between $40 to $60 million.


3. (SBU) Motorola expects competition from Thales of France,
and Rohde and Schwartz of Germany. On the last ISS radio
tender in 2003, Thales underbid Motorola's $7 million
submission by $2 million. Roper averred, however, that the
ISS has been dissatisfied with Thales' performance, and has
only invited a submission from the company to induce price
competition.

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PRICE IS KEY
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4. (SBU) Roper said that Motorola will be looking for USG
advocacy support. He added that Motorola's expertise with
encryption technology and its familiarity with the tetra
standard will work in its favor. Econoff requested that
Motorola file an advocacy questionnaire as soon as possible.
Econoff also inquired whether Motorola's pricing for this
tender will be more competitive, given the government's
unwillingness to pay more for brand name alone. Roper
expected Motorola to submit a much more competitive bid for
this tender.
BALTIMORE