Identifier
Created
Classification
Origin
09ASHGABAT786
2009-06-23 11:11:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: U.S. COMPANIES DOMINATE WIRELESS
how-toVZCZCXRO6637 PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHNEH RUEHPW RUEHROV RUEHSK RUEHSL RUEHSR RUEHVK RUEHYG DE RUEHAH #0786 1741111 ZNR UUUUU ZZH P 231111Z JUN 09 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 3025 INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA 5345 RUEHBJ/AMEMBASSY BEIJING 3073 RUEHKO/AMEMBASSY TOKYO 2938 RUEHIT/AMCONSUL ISTANBUL 3589 RUCNDT/USMISSION USUN NEW YORK 1028 RHMCSUU/CDR USCENTCOM MACDILL AFB FL RUEHVEN/USMISSION USOSCE 3643 RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC
UNCLAS ASHGABAT 000786
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
E.O. 12958: N/A
TAGS: ETRD PGOV EINV TX
SUBJECT: TURKMENISTAN: U.S. COMPANIES DOMINATE WIRELESS
TELECOMMUNICATIONS MARKET
UNCLAS ASHGABAT 000786
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
E.O. 12958: N/A
TAGS: ETRD PGOV EINV TX
SUBJECT: TURKMENISTAN: U.S. COMPANIES DOMINATE WIRELESS
TELECOMMUNICATIONS MARKET
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: One of the few segments of the Turkmen
market that U.S. brands and products largely dominate is
wireless telecommunications (excluding cellular phone
communications). For the most part, Turkmen military and law
enforcement services, state-owned energy companies, and
private businesses working in Turkmenistan use
telecommunications equipment produced by such U.S. companies
as Motorola and Harris and are distributed by local distributors
that know how to navigate the Turkmen bureaucracy. While one
local company predicts that smaller distributors will enter
the market as time goes on, the Turkmen wireless
telecommunications market will not grow in the near future to
the point where a U.S. company could justify in economic terms
opening of a branch or office in Turkmenistan. END SUMMARY.
3. (SBU) Although the cellular telephone market has grown
rapidly in Turkmenistan over the last two years, the market
for other types of wireless communications remains relatively
narrow. Non-cellular wireless communication systems and
equipment are mostly used by the Turkmen military and law
enforcement services, and the Ministry of Defense and Ministry
of Internal Affairs are the principal users of Motorola and
Harris equipment in Turkmenistan. Another market segment for
non-cellular wireless telecommunication is Turkmenistan's oil
and gas sector. A number of foreign energy companies
intensively use this kind of communication in their in-field
operations. State-owned oil and gas companies seldom employ
non-cellular wireless telecommunication systems and still
prefer land-based phone lines which run along gas and oil
pipelines, and are often referred to as "gas phones" in
Turkmenistan. When Turkmen state-owned oil and gas companies
finally decide to modernize their communications, they have
the potential to become one of the largest users of wireless
telecommunications technologies.
4. (SBU) All American companies selling their products in
Turkmenistan operate through local distributors rather than
having an office in Turkmenistan. A representative at local
distributor Imdat HJ, which enjoys a near-monopoly position in
distributing wireless systems and equipment in Turkmenistan,
said that given the low sales volume in the market, U.S.
companies find it more economically feasible to work through
distributors. It is also more practical for a Turkmen company
to engage on behalf of the U.S. company in the time- and
resource-consuming process of obtaining the necessary licenses
from the Ministry of Communications.
5. (SBU) COMMENT: The fact that state organizations are the
principal users of wireless communications equipment and
systems -- and that one local company has a near-monopoly as
their supplier -- indicates that long-established personal
ties with government organizations and officials are crucial
for successful operations in this market. The Imdat
representative acknowledged that smaller distributors will
enter the market as the number of foreign companies needing
wireless communications for operations in Turkmenistan grows.
Nevertheless, the Turkmen wireless telecommunications market will
not grow in the near future to the point where a U.S. company
could justify in economic terms opening of a branch or office
in Turkmenistan. END COMMENT.
MILES
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
E.O. 12958: N/A
TAGS: ETRD PGOV EINV TX
SUBJECT: TURKMENISTAN: U.S. COMPANIES DOMINATE WIRELESS
TELECOMMUNICATIONS MARKET
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) SUMMARY: One of the few segments of the Turkmen
market that U.S. brands and products largely dominate is
wireless telecommunications (excluding cellular phone
communications). For the most part, Turkmen military and law
enforcement services, state-owned energy companies, and
private businesses working in Turkmenistan use
telecommunications equipment produced by such U.S. companies
as Motorola and Harris and are distributed by local distributors
that know how to navigate the Turkmen bureaucracy. While one
local company predicts that smaller distributors will enter
the market as time goes on, the Turkmen wireless
telecommunications market will not grow in the near future to
the point where a U.S. company could justify in economic terms
opening of a branch or office in Turkmenistan. END SUMMARY.
3. (SBU) Although the cellular telephone market has grown
rapidly in Turkmenistan over the last two years, the market
for other types of wireless communications remains relatively
narrow. Non-cellular wireless communication systems and
equipment are mostly used by the Turkmen military and law
enforcement services, and the Ministry of Defense and Ministry
of Internal Affairs are the principal users of Motorola and
Harris equipment in Turkmenistan. Another market segment for
non-cellular wireless telecommunication is Turkmenistan's oil
and gas sector. A number of foreign energy companies
intensively use this kind of communication in their in-field
operations. State-owned oil and gas companies seldom employ
non-cellular wireless telecommunication systems and still
prefer land-based phone lines which run along gas and oil
pipelines, and are often referred to as "gas phones" in
Turkmenistan. When Turkmen state-owned oil and gas companies
finally decide to modernize their communications, they have
the potential to become one of the largest users of wireless
telecommunications technologies.
4. (SBU) All American companies selling their products in
Turkmenistan operate through local distributors rather than
having an office in Turkmenistan. A representative at local
distributor Imdat HJ, which enjoys a near-monopoly position in
distributing wireless systems and equipment in Turkmenistan,
said that given the low sales volume in the market, U.S.
companies find it more economically feasible to work through
distributors. It is also more practical for a Turkmen company
to engage on behalf of the U.S. company in the time- and
resource-consuming process of obtaining the necessary licenses
from the Ministry of Communications.
5. (SBU) COMMENT: The fact that state organizations are the
principal users of wireless communications equipment and
systems -- and that one local company has a near-monopoly as
their supplier -- indicates that long-established personal
ties with government organizations and officials are crucial
for successful operations in this market. The Imdat
representative acknowledged that smaller distributors will
enter the market as the number of foreign companies needing
wireless communications for operations in Turkmenistan grows.
Nevertheless, the Turkmen wireless telecommunications market will
not grow in the near future to the point where a U.S. company
could justify in economic terms opening of a branch or office
in Turkmenistan. END COMMENT.
MILES