SKYPE CRACKDOWN IN OMAN

S E C R E T MUSCAT 001039

SIPDIS
NEA/ARP PLEASE PASS TO JASON BUNTIN AT USTR.

E.O. 12958: DECL: 2019/11/23
TAGS: ECPS EINT ETRD ETTC PHUM MU
SUBJECT: SKYPE CRACKDOWN IN OMAN

CLASSIFIED BY: Richard J. Schmierer, AMB, Department of State,
Embassy Muscat; REASON: 1.4(B),(D)


1. (C) SUMMARY: Oman prohibits the use of Voice Over Internet
Protocol services and access to leading VOIP providers is blocked
by the Sultanate's Internet filters. The government has cracked
down on VOIP service providers throughout the year, arresting
approximately 212 individuals so far this year. The enforcement of
the prohibition is indicative both of protectionist economic
policies and restrictions on means of communication the government
cannot monitor. END SUMMARY.




2. (C) Despite the legal prohibition of Voice Over Internet
Protocol (VOIP) services, they remain very popular in Oman. Many
expatriates and Omanis, including personnel at diplomatic missions,
use Skype privately to communicate with family and friends
overseas. VOIP can be enabled via use of Virtual Private Network
(VPN) software or by accessing the Internet via proxy server. Thus
far there have been no reports of arrests of Western expatriates
for VOIP violations.




3. (U) On November 16, private English daily "Times of Oman"
reported that the Royal Oman Police (ROP) arrested approximately
212 people for providing illegal VOIP services in 2009. Most of the
arrested individuals operate cyber cafes or opened their
internet/VOIP enabled home computer to outside users. The Times
cited an anonymous ROP source, who stated that the majority of
arrestees were of various Asian nationalities, that raids on VOIP
service providers have intensified, and that the ROP is seeking the
assistance of the public in reporting service providers. Providing
telecommunications services, including international phone calls
without a license, is illegal in Oman pursuant to Article 20 of the
Telecommunications Regulatory Act. Violators of Article 20 face
either a 50,000 Omani Rial fine ($130,000),two years in jail, or
both.




4. (U) The Times article quoted the source as saying that the
crackdown in enforcing Article 20 is intended to stem the losses of
local telecommunications providers which are losing out on
international calling charges to VOIP services. Using VOIP services
either at a cyber cafC) or in the home significantly reduces the
cost of international telephony as Omani telecommunications
providers have high international calling rates, in part a result
of a lack of competition. Oman has granted only two
telecommunications licenses: one to OmanTel, which is still partly
government owned, and the other to Nawras, a relatively new Qatari
private telecommunications firm to the Omani market (although
Nawras in-part relies on OmanTel infrastructure as it continues to
develop its own).




5. (C) Over the past several months EconOff has received several
inquiries into whether the U.S. - Oman Free Trade Agreement (FTA)
requires Oman to repeal Article 20, as it restricts a U.S.
business, Skype, from operating in Oman. Skype, the largest VOIP
service, is owned by eBay, a U.S. company specializing in online
auctions, and therefore may fall under the FTA. The United States
Trade Representative's office is currently researching the issue.
Notably, EconOff was asked about the Skype issue by two prominent
Omani businessmen, who view the restriction as limiting their
ability to communicate with business interests abroad at a
reasonable price.




6. (S) COMMENT: As reported, the protection of Oman's
telecommunications industry partly explains the prohibition of VOIP
services and the crackdown on violators. However, the unstated and
likely more significant rationale for the VOIP prohibition may be
that such services are out of reach of the listening ear of the
government. Although Post's information on Oman's monitoring
capabilities of telecommunications is murky, it is not believed
that the government has the ability to monitor VOIP services. The
front-page coverage of the crackdown is clearly intended to deter
Omani residents from using VOIP services. END COMMENT.
Schmierer