Identifier
Created
Classification
Origin
09BAGHDAD3007
2009-11-16 13:21:00
CONFIDENTIAL
Embassy Baghdad
Cable title:  

IRAQ'S TELECOM REGULATOR: PUSHING FOR INDEPENDENCE

Tags:  ECON ECPS EINT EINV IZ PGOV 
pdf how-to read a cable
VZCZCXRO9087
RR RUEHBC RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHGB #3007/01 3201321
ZNY CCCCC ZZH
R 161321Z NOV 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 5443
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEAFCC/FCC WASHDC
C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003007 

SIPDIS

E.O. 12958: DECL: 10/30/2018
TAGS: ECON ECPS EINT EINV IZ PGOV
SUBJECT: IRAQ'S TELECOM REGULATOR: PUSHING FOR INDEPENDENCE
AND CONCERNED ABOUT FOREIGN MEDIA INFLUENCES ON ELECTION

REF: 09 BAGHDAD 2677

Classified By: Econ Counselor John Carwile, reason 1.4 (b and d)

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 003007

SIPDIS

E.O. 12958: DECL: 10/30/2018
TAGS: ECON ECPS EINT EINV IZ PGOV
SUBJECT: IRAQ'S TELECOM REGULATOR: PUSHING FOR INDEPENDENCE
AND CONCERNED ABOUT FOREIGN MEDIA INFLUENCES ON ELECTION

REF: 09 BAGHDAD 2677

Classified By: Econ Counselor John Carwile, reason 1.4 (b and d)


1. (C) SUMMARY: Iraq's recently reconstituted Communications
and Media Commission (CMC) has been asserting its role as an
independent regulator with increasing effectiveness. Noting
he was working closely with Iraq's Independent High Electoral
Commission (IHEC) to ensure "appropriate" media conduct and
cooperation from broadcasters, CMC Chair Dr. Burhan Shawi
told Econoff the Commission has a critical role in ensuring
"objective" media coverage during the planned January 2010
national elections. Shawi expressed pointed concern for
foreign-based media that broadcast "subversive and dangerous"
messages from outside Iraq; he expected the number of such
alleged broadcasts to increase as the election draws near.
On telecommunications regulation, the CMC revealed its
evolving activist role at the Council of Representatives
(COR),which recently helped derail legislation detrimental
to the CMC and the telecoms sector as a whole. Additionally,
the CMC has been developing internal policy and technical
expertise and is conducting public outreach to other GOI
elements and the media sector in order to explain its role
and enforce its broadcast license authority. Despite
continued operation under an unclear legal mandate stemming
from CPA order #65, the CMC has stood up to internal GOI
resistance regarding its role as an independent regulator and
has empowered its membership to execute their respective
roles. END SUMMARY.

CMC role with IHEC: Election Concerns About Foreign Media
Influences
--------------


2. (C) Under Shawi's leadership, the CMC has focused on its
media regulation responsibility, particularly in the run-up
to the planned January 2010 elections. In cooperation with
UNDP and IHEC, the Commission has recently published a "Code
of Practice" and a specific "Code for Media Coverage during
the Elections" to serve as a guideline for Iraqi broadcasters

during the upcoming campaign season. Additionally, the CMC
has formed a media monitoring center that will continuously
track "everything that is said on every channel" during the
formal election cycle. (Comment: Several Iraqi journalists
have expressed concern to Poloffs that the CMC is a tool of
PM Maliki and his allies -- and too partisan to effectively
mediate press reporting; several have expressed concern that
the CMC is monitoring media reporting at all. End Comment.)


3. (C) For their part, Shawi and his staff expressed special
concern for the role that foreign-based broadcasters play in
Iraq's media market. Clearly frustrated by their lack of
control over outside influences, the CMC sees elements of the
more extreme broadcasters as a potentially destabilizing
force in the coming months. Shawi pledged to provide a list
and location of the broadcasters with whom he is most
concerned to Econoff in the coming weeks. When pressed,
Shawi admitted that the majority of Iraqis would not be
swayed by these media messages, but noted that "the trouble
we have is not caused by the majority."

An Activist Role at the COR, $3 Billion Foreign Direct
Investment?
--------------


4. (C) The CMC has increased its presence and activism at the
COR in recent months, working directly with individual
members, coalitions and committees to more fully explain its
role as an independent regulator and advocate for media
rights as well as telecommunications regulations in line with
Qrights as well as telecommunications regulations in line with
a private-sector-led market. Specifically, the CMC stated
that the Chairmen of the COR's Labor and Services Committee
and Legal Committee agreed with the CMC's outlook on the
sector and its views on the respective roles of the Ministry
of Communications (MoC) and the CMC itself. The committee
chairs likewise pledged to oppose recent legislation
introduced by the MoC that sought to enhance MoC powers at
the expense of the CMC. (Note: On 5 November, the COR held a
first reading of new legislation that would place the CMC
under the control of the COR, a move that may lead to a true
independent regulatory status for the CMC in the future. End
Note)


5. (C) Regarding a proposed $3 billion joint venture (JV
proposal from Korek Telecom),Econoff inquired where the CMC
was in its decision-making process. Shawi noted the
application was under review, but the CMC did not understand
the intricacies of the offshore formation of the proposed JV
in the Cayman Islands. Econoff suggested the CMC hire an
independent consultant to help evaluate the proposal and
expressed the hope that a decision, either approving or

BAGHDAD 00003007 002 OF 002


disapproving the venture, could be reached soon, as foreign
direct investment in Iraq will be crucial to Iraq's economic
development and diversification.

Increasing Technical and Policy Expertise, Reaching out to
Broadcasters and ISPs
--------------


6. (U) CMC members reported positively on their recent
attendance of the International Telecommunications Union
conference in Dresden, Germany. Shawi noted that ITU
recommendations for Iraq's telecommunications sector
generally supported the CMC's role and defined only one area
of joint responsibility between the CMC and the MoC on
frequency management. The CMC is also focused on technical
training for its staff in order to more effectively monitor
call quality of service for mobile and internet service
providers. (Note: Internet penetration in the Iraqi
marketplace is less than five percent of the population; many
industry professionals see Iraq as a major growth market for
internet in the coming years. End Note) In addition, the CMC
has chosen to reach out directly to broadcast and internet
service providers to ensure proper licensing in accordance
with existing regulations.

Comment
--------------


7. (C) The CMC's role as an independent regulator is far from
solidified in Iraq's evolving political
climate. In the run-up to the planned January elections,
elements of Iraq's differing economic ideologies continue
to spar, and calls for greater state control of Iraq's
perceived national assets like oil, industry, and
infrastructure are still prevalent. Despite continued
operation under an unclear legal mandate stemming from CPA
order #65, the CMC has stood up to internal GOI resistance
regarding its role as an independent regulator and
empowered its members via education and outreach to execute
their respective roles. Post will continue to
support the CMC's role via the Strategic Framework Agreement
as well as directly with the GOI at all
appropriate levels. End Comment.
HILL