TURKMENISTAN: COMMUNICATIONS OFFICIALS EMPHASIZE

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001482

SIPDIS

DEPT FOR SCA/CEN

E.O. 12958: DECL: 11/18/2019
TAGS: ECPS EINT ETRD PGOV TX
SUBJECT: TURKMENISTAN: COMMUNICATIONS OFFICIALS EMPHASIZE
SATELLITE, FIBER OPTIC CABLE PROJECTS

Classified By: Charge Sylvia Reed Curran, Reasons 1.4 (b) and (d)


1. (C) SUMMARY. In Deputy Assistant Secretary of State
George Krol's November 16 meeting with Ministry of
Communications officials, the Turkmen highlighted President
Berdimuhamedov's initiative for a Turkmen-owned
communications satellite as their first priority. Seven
companies, including three U.S. firms, are currently
reviewing technical data as part of the tender process.
There are also several Trans-Caspian fiber optic cable
projects under consideration, including a proposal by a
Georgian company with a U.S. partner. The Turkmen have
completed a fiber optic cable to the Afghan border and will
complete a second such cable in 2010, but so far Afghan
counterparts have not replied to Turkmen offers to make
cross-border connections. END SUMMARY.


2. (C) On November 16, DAS George Krol and Senior Advisor to
the Special Envoy on Eurasian Energy Daniel Stein discussed
Turkmenistan's communications sector priorities with Minister
of Communications Ovlyaguly Jumagulyev and the Ministry's
Chief of Radio, Television and External Relations Department

S. Gurbandurdy Taganov. DAS Krol noted reports that
President Berdimuhamedov has made the modernization of the
Turkmenistan's communications sector a priority. He offered
that, as a partner of Turkmenistan and a leader in
communications technology, the U.S. could offer valuable
experience, particularly in the satellite and fiber optic
cable projects that Turkmenistan is considering.


3. (C) According to Jumagulyev, the Turkmenistan satellite
project is at the feasibility study/tender phase. Three U.S.
companies, Hughes Networks, Lockheed Martin, and Boeing, are
among the seven competitors. The Ministry has provided the
technical specifications to the interested companies and is
currently waiting for their decision regarding participation.
December 11 is the deadline for proposals. The Ministry
needs to present a proposal to Berdimuhamedov in the
beginning of 2010. The government wants its own satellite in
order to provide communications to many remote sites around
the country involved in oil and gas exploration. However,
its coverage would not be limited to Turkmenistan. Currently
a Russian satellite broadcasts Turkmen television channels,
and the new satellite would have similar coverage beyond
Turkmenistan's borders.


4. (C) The Minister also referred to proposals for fiber
optic cable projects around and under the Caspian. One
project would link Turkmenistan to Makhachkala in Russia.
Another proposal under consideration is a fiber optic
communications link that would form a ring around the
Caspian. Stein mentioned that a Trans-Caspian fiber optic
cable could be part of a broader effort to link the Afghan
fiber optic ring with Central Asia and Europe. There could
also be a southward linkage to Pakistan. Stein raised the
proposal of a successful Georgian internet service provider
that, together with a U.S. partner, would like to build a
Trans-Caspian fiber optic cable from Baku to Turkmenistan and
beyond. Taganov said the Ministry understands the
diversification and other benefits of that project, and
Minister Jumagulyev indicated that the Ministry supports the
project. Taganov also mentioned that a fiber optic cable was
installed to Imam-Nazar on the Turkmen-Afghan border last
year, and that the government expects to complete a cable to
Kushki, on the same border, in the first quarter of 2010. So
far, there has been no response from the Afghan side about
connecting with the Afghan network at these points, and
Taganov requested U.S. help with Afghan counterparts on this
issue. Turkmenistan currently has fiber optic links with
Uzbekistan and Iran, reaching Europe through Iran and Russia
through Uzbekistan and Kazakhstan. A cable project under the
Caspian would require approval by the Turkmen Cabinet of
Ministers.


5. (C) Turkmenistan has two mobile phone service providers,

ASHGABAT 00001482 002 OF 002


government-controlled Altyn Asyr and Russian MTS. Jumagulyev
said the government would welcome another foreign provider to
enter the market on the same terms as those under which MTS
currently operates. The Russian mobile phone company Beeline
(Bilayn) has proposed entering the Turkmen market with its
own investment and the government is reviewing its proposal.


6. (C) Stein mentioned a TDA-sponsored information and
communications technology trip to the U.S. for Turkmen
officials earlier this year. He remarked that at least one
concrete project has already resulted from the trip, to
manufacture computers in Turkmenistan, and asked for the
Minister's views on future projects that the U.S. could
pursue. Taganov replied that a result of the trip, on which
he participated, was plans for the manufacture of notebook
computers in Turkmenistan. The U.S. company Global Resources
is acting as the representative of the Turkmen government in
discussions with Intel about the project. They expect an
Intel delegation to come to Turkmenistan to discuss in detail
measures to implement the project. Taganov said the Ministry
and Intel want to provide a full project description,
including a feasibility study and financing, to the
government for approval. He mentioned that the proposal
would be more attractive if it is an investment proposal.
This project falls within Berdimuhamedov's policy of
introducing technology in the schools. Global Resources has
identified 3-4 local private companies that could participate.


7. (C) COMMENT: U.S. companies have a lot to offer in the
information and communication technology sector, so it's no
surprise that they figure in possible satellite, fiber optic
and computer manufacturing projects. While some U.S.
companies (e.g. GE, Boeing, John Deere) have had marked
success in selling to the Turkmen, investment in Turkmenistan
will involve U.S. companies in a whole other level of
engagement which, while both challenging and hopefully
profitable for the U.S. side, would also contribute to the
introduction of Western business practices in the Turkmen
economy. END COMMENT.


8. (U) DAS Krol has cleared this cable.
CURRAN