GABON: TELECOMMUNICATIONS STRIKE SHUTS DOWN

C O N F I D E N T I A L SECTION 01 OF 02 LIBREVILLE 000364 SIPDIS AF/C FOR LISA KORTE E.O. 12958: DECL: 08/03/2019 TAGS: ECON ECPS EINT EINV ELAB ETTC SUBJECT: GABON: TELECOMMUNICATIONS STRIKE SHUTS DOWN TELEPHONE, INTERNET Classified By: AMB EUNICE REDDICK FOR REASONS 1.4 (B) AND (D) -------------- SUMMARY -------------- ¶1. (C) In the critical lead time prior to Gabon,s presidential election August 30th, much of the country is without internet and telephone capability. A strike by Gabon Telecommunication workers has resulted in internet, land, and cellular lines being disabled, and is affecting all subsidiaries of the company, the largest in Gabon. The chairman of parent company Maroc Telecom has arrived to help end the strike, but with Gabon's leadership in flux an end is not in sight. END SUMMARY. -------------- BACKGROUND -------------- ¶2. (SBU) In 2006, Maroc Telecom won a government contract to acquire a 51% stake in fixed line operator Gabon Telecom for EUR61 million. The other 49% is owned by the government of Gabon and unnamed "private stakeholders". There are approximately 40,000 fixed line subscribers and a wireless market share of approximately 30% (260,000). Gabon,s mobile penetration rate is estimated at 58% with fixed line penetration at 3%. Libreville,s landlines are exclusively wired by Gabon Telecom. ¶3. (SBU) Many other so-called &independent8 mobile and internet companies rely on Gabon Telecom servers and satellites to meet their customer demand, and are considered part or wholly-owned subsidiaries of the company. -------------- SHUTTING DOWN COMMUNICATIONS -------------- ¶4. (C) Since July 9th, all Gabonese Telecommunication workers have been on strike to protest salary discrepancies between themselves and the 100%-owned mobile subsidiary company, Libertis. Initially, striking workers performed a bare minimum of duties but management, in apparent attempts to discourage them, stopped paying their salaries. Meetings between Synatel, the workers, union, and management have failed. The Ministry of Telecommunications requested management to pay the striking workers, but the request was denied. In retaliation, all Gabon Telecom workers went on strike and are rumored to have cut all telephone lines, including the internet, land lines, and all mobile phone Libertis connections. They are currently requesting Gabonese authorities to take back the interests of Maroc Telecom, citing management refusal to accede to Ministry of Telecommunication requests as a lack of respect for Gabonese law. The General Manager and Chairman of Maroc Telecom, Abdeslam Ahizoune, arrived in Libreville last night to confront the crisis. He is scheduled to meet with government authorities for new negotiations. The refusal to comply with the government,s earlier request is viewed by many as a show of lack of authority and disregard for Gabonese intervention, and Synatel has renewed their conviction not to compromise as a result. -------------- ECONOMIC EFFECTS -------------- ¶5. (C) The economic impact of this strike is significant. Land lines usually function poorly in Gabon, but much of the capital city is without internet access, and any cellular customer with Gabon Telecom or an affiliate has found their mobile phone useless.Cyber cafes have shut down since they have no connections, and many companies, both large and small, have found their ability to do business restricted. The population is attempting to migrate to other services such as Moov and Zain, but the alternative companies are finding it difficult to meet demand. Zain in particular is having difficulty meeting the increased demand for its service, and has suffered hardware shortages since mid-July, effectively halting new subscriptions. Solsi and Digicom are other internet alternatives that rely on Gabon Telecom to meet their customer demand. Customers whose connections were previously unaffected are now being cut off as independent backups are being used to capacity. -------------- EMBASSY BACKUP -------------- ¶6. (C) Embassy Libreville has internet service through Solsi, a company that employs a V-sat backup, and currently has internet. However our VPN link with Washington is not working and we have had to use our satellite backup. Embassy land-line telephones have become all but useless although IVG is also still working. Our cellular contract is with Zain, however, and therefore we currently have mobile phone connectivity. LIBREVILLE 00000364 002 OF 002 -------------- COMMENT -------------- ¶7. (C) Due to the timing of this communications breakdown immediately prior to the election, some Gabonese are questioning whether there is more to this strike than meets the eye. Rumors of Gabon Telecom workers actively destroying connectivity are rampant, and, if true, certainly the methods employed during this strike are atypical of Gabonese workers. In the absence of the mediation of the late President Bongo, and with the future of Gabon's leadership still undetermined, labor problems have become increasingly intractable. END COMMENT. REDDICK