PALESTINIAN TELECOM: PA WANTS WIMAX FREQUENCY

C O N F I D E N T I A L JERUSALEM 001832

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E.O. 12958: DECL: 10/02/2013
TAGS: ECPS ECON BEXP EINV KWBG IS
SUBJECT: PALESTINIAN TELECOM: PA WANTS WIMAX FREQUENCY

REF: JERUSALEM 1795

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


1. (C) Summary: In May, the PA formally requested GOI
allocation of frequency spectrum that would allow the
deployment of broadband WiMax internet capabilities in the
West Bank. PA telecom contacts say that WiMax technology
will enhance competition in the telecom sector and produce
revenue for the PA. President Abbas' Special Advisor on
Telecom, Sabri Saidam, argues that the PA has a right to
required frequencies under the Interim Agreement and should
be "less timid" in requesting frequencies from the GOI.
Private sector opinions on WiMax are mixed: current broadband
provider PalTel deems WiMax "unnecessary," while numerous
smaller companies see it as their gateway to the broadband
market. End summary.

PA waits for 3.5 GHz frequency
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2. (C) PA Deputy Telecom Minister Zuhairi told Econoff on
September 27 that the PA formally requested a 3.5 GHz
frequency allocation from the GOI during a May 2008 session
of the Joint Technical Committee (JTC). He said the 3.5 GHz
frequency would be used to establish WiMax capabilities in
the West Bank and that the PA will issue a tender for
frequency access once it is allocated. He said that the GOI
has not yet responded officially at the JTC to the frequency
request. He underscored that the wireless telecommunications
sector has strong growth potential in the West Bank/Gaza, as
such technology is not obstructed by checkpoints and
roadblocks.

PA "has a right" to required frequencies
--------------


3. (C) President Abbas' Special Advisor on
Telecommunications Sabri Saidam told Econoff that WiMax in
the West Bank is a priority of President Abbas. Saidam - a
former Minister of Telecom - underscored that the PA has a
right to required frequencies under the Interim Agreement.
He said that the PA and the international community have been
"far too timid in requesting frequencies for Palestinian
markets" and that increased competition in the telecom sector
will produce much need revenue for the PA. Saidam said that
the Palestinian telecom sector needs WiMax to create better,
less costly, communication services for Palestinian
businesses and consumers.

WiMax likely to increase broadband competition
-------------- -


4. (C) PADICO subsidiary PalTel is the only current
broadband provider in the West Bank and Gaza. PalTel
Technical Director Mustafa Deeb told Econoff on September 27
that there is no demand for WiMax in the West Bank, as PalTel
already provides good broadband services through its
extensive copper wire network. "It's just not necessary,"
said Deeb.


5. (C) BCI Communications and Advance Technology CEO Said
Baransi said that BCI plans to bid on the 3.5 GHz frequency
tender, as his is the only licensed Palestinian company that
has infrastructure already in place to operate a WiMax
network. He said that WiMax technology would allow for
greater competition in the broadband service sector and would
be a gateway to better broadband competition in the West
Bank. (Note: BCI is a recipient of a USTDA grant and
operates a pilot program for small-scale, private WiMax
networks in Ramallah, Bethlehem, and Hebron. Baransi said
that BCI already uses the Israeli-controlled 3.5 GHz
frequency without PA involvement and at the quiet
acquiescence of the GOI. End note.)


6. (C) Wataniya Palestine CEO Allan Richardson told Econoff
on September 30 that access to the 3.5 GHz frequency would
allow his company to offer "third generation" services -i.e.
combined SMS, email, and internet capabilities- which are not
supported in Wataniya's current frequency allocations (Ref).


WALLES