SULTAN QABOOS PROMISES TO INVESTIGATE FTA TELECOM

C O N F I D E N T I A L MUSCAT 000309 SIPDIS SIPDIS STATE PLEASE PASS TO USTR AND AMBASSADOR SCHWAB E.O. 12958: DECL: 04/25/2018 TAGS: ETRD ECPS PGOV MU SUBJECT: SULTAN QABOOS PROMISES TO INVESTIGATE FTA TELECOM PROBLEMS Classified By: Ambassador Gary A. Grappo per 1.4 (B and D). ¶1. (C) In his meeting with Sultan Qaboos on Wednesday, April 23 (see septel),the Ambassador conveyed USG concern with Oman's apparent approach to telecom licensing, pointing out that Oman's actions may be in conflict with both its FTA and WTO obligations. ¶2. (C) As also communicated in USTR Susan Schwab's April 21 letter to Minister of Commerce & Industry Maqbool bin Ali Sultan, the Ambassador pointed to Oman's apparent intention to license only a single fixed-line operator as opposed to opening the telecom sector to all qualified participants, and to Omani plans to establish a unified licensing structure that would prevent an operator from offering service in a specific area of its choosing. ¶3. (C) The Sultan asked several questions pertaining to the actual details of his government's licensing plans, including the purported intentions of such a restrictive approach. He thanked the Ambassador for bringing "this important matter to my attention" and promised to investigate the problem. He reaffirmed his full commitment to seeing the FTA implemented as soon as possible. ¶4. (C) Comment: At an event the following evening, Minister Maqbool cornered the Ambassador to advise that he had been called by the Sultan about our concerns over the telecom licensing matter. He thanked the Ambassador for raising the issue with the Sultan and stated that with the Sultan's attention on the matter now, he might have more luck in "putting things back on track." Having just returned from a four-day visit to Iran, he had not yet seen Ambassador's Schwab's letter but agreed to see the Ambassador in the coming week to discuss next steps. End comment. GRAPPO