TURKMENISTAN: MINISTER OF COMMUNCIATIONS WELCOMES

UNCLAS SECTION 01 OF 02 ASHGABAT 000915 SENSITIVE SIPDIS STATE FOR SCA/CEN, EEB PLEASE PASS TO USTDA DAN STEIN ENERGY FOR EKIMOFF/THOMPSON COMMERCE FOR HUEPER E.O. 12958: N/A TAGS: PREL ECPS EIND AJ TX SUBJECT: TURKMENISTAN: MINISTER OF COMMUNCIATIONS WELCOMES POSSIBLE COOPERATION WITH USTDA REF: ASHGABAT 901 ¶1. (SBU) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: During a July 17 meeting with the U.S. Trade and Development Agency (USTDA) Regional Director for Europe and Eurasia, Dan Stein, Minister of Communications Hojagurbanov acknowledged Turkmenistan's need to strengthen its communications and information technology sectors. To that end, it is embarking on a crash course of capacity-building projects with international financial institutions. Turkmenistan is seeking to de-monopolize its cellular phone market and is working on laying additional fiber optic lines. Hojagurbanov welcomed the possibility of a USTDA program. Stein will provide proposals in about two weeks, possibly including projects in Emergency Management and Communications and e-Government. Both sides would benefit if Minister Hojagurbanov would also participate in a study tour. END SUMMARY. ACTIVELY TRYING TO DIVERSIFY THE CELL PHONE MARKET ¶3. (SBU) Stein met with Hojagurbanov and Chairman of Turkmen Telecom Annadovlet Muhammedov (who serves concurrently as Deputy Minister of Communications) on July 17. Hojagurbanov said that there are almost one million cell phone subscribers in Turkmenistan, with projected service jumping to 1.5 million subscribers in the next year. The minister said that Turkmenistan is trying to attract other cellular service providers, in addition to domestic company Altyn Asyr and Russian firm MTS which are currently servicing Turkmenistan's market. To that end, the government is reviewing proposals from Russian and European firms. Hojagurbanov said that MTS will sponsor the university education of 20 students in St. Petersburg. WE ARE A LITTLE BEHIND, BUT ARE WORKING HARD TO CATCH UP ¶4. (SBU) With President Berdimuhamedov's support, the Ministry is purchasing Wi-Max, 3G, and other state-of-the-art Internet technology from companies such as Cisco Systems. The Ministry also works with Siemens, Huawei, and Eurasia Limited, which provide training in Turkmenistan and have "good relations" with the Ministry. Hojagurbanov acknowledged that "We are a little behind, but we are working hard to catch up." He also said, "We cannot stay behind the rest of the world -- we have to catch up." FIBER OPTIC LINES BUILT WITH FOREIGN ASSISTANCE AND INDEPENDENTLY ¶4. (SBU) Hojagurbanov said that the Ministry is working with the Islamic Development Bank to build an Ashgabat-Balkanabat-Turkmenbashy fiber optic line. The Chinese EXIM Bank supplied credit for other fiber optic lines and development of the cellular phone system. Turkmenistan built the Ashgabat-Dashoguz line without outside assistance. The Ministry will extend a fiber optic line which is in the process of being laid from Turkmenabat to Imamnazar to Afghanistan. The Minister said that Turkmenistan and the Government of Azerbaijan are also working together to review the costs and benefits of laying a trans-Caspian fiber optic line. READY TO CONSIDER ALL PROPOSALS ¶5. (SBU) Minister Hojagurbanov said that Turkmenistan needs both practical experience and theoretical instruction, in ASHGABAT 00000915 002 OF 002 areas as diverse as tariff issues, and training operators, engineers, and management. He said that he was aware that the telecommunications sector in the United States is very progressive, and welcomed any program proposals that Stein might offer, especially grants and study tours for specialists. NEXT STEPS ¶6. (SBU) Stein said that USTDA would provide concrete proposals in about two weeks to the Ministry. Information technology-oriented study tours to the United States include visits to Washington, DC and Silicon Valley. Before the group would depart, USTDA would send a specialist to help put together a presentation on Turkmenistan's technology sector. Stein suggested that Turkmenistan might also be interested in a project on Emergency Management and Communications, which would cover government response and emergency communications technology used during natural disasters, terrorist acts, and other unexpected actions. Stein also discussed e-government applications for internal government communications or for use in delivery of services to citizens. ¶7. (SBU) COMMENT: The success of USTDA's hydrocarbon sector training program has garnered some strong support for the agency within Turkmenistan's government. That fact, combined with Hojagurbanov's recognition that he is starting from a low bar in improving Turkmenistan's IT sector makes it likely that he will follow up on any USTDA proposals. Both the United States and Turkmenistan would likely benefit from his participation in one of these study tours, as well. END COMMENT. CURRAN