US embassy cable - 04ABUDHABI1155

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UAE opens its telecommunications sector

Identifier: 04ABUDHABI1155
Wikileaks: View 04ABUDHABI1155 at Wikileaks.org
Origin: Embassy Abu Dhabi
Created: 2004-04-14 13:56:00
Classification: UNCLASSIFIED//FOR OFFICIAL USE ONLY
Tags: ETRD WTO USTR TC
Redacted: This cable was not redacted by Wikileaks.
null
Diana T Fritz  03/15/2007 02:54:04 PM  From  DB/Inbox:  Search Results

Cable 
Text:                                                                      
                                                                           
      
UNCLASSIFIED

SIPDIS
TELEGRAM                                           April 14, 2004


To:       No Action Addressee                                    

Action:   Unknown                                                

From:     AMEMBASSY ABU DHABI (ABU DHABI 1155 - ROUTINE)         

TAGS:     ETRD                                                   

Captions: None                                                   

Subject:  UAE OPENS ITS TELECOMMUNICATIONS SECTOR                

Ref:      None                                                   
_________________________________________________________________
UNCLAS        ABU DHABI 01155

SIPDIS
CXABU:
    ACTION: ECON 
    INFO:   DCM P/M AMB POL 
Laser1:
    INFO:   FCS 

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: AMBASSADOR:MMWAHBA
DRAFTED: ECON: OJOHN,
CLEARED: A/DCM: HOLSIN-WINDECKER, CGD:JDAVIS/MCARVER

VZCZCADI909
RR RUEHC RUEHZM
DE RUEHAD #1155 1051356
ZNR UUUUU ZZH
R 141356Z APR 04
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 3974
INFO RUEHZM/GCC COLLECTIVE
UNCLAS ABU DHABI 001155 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR NEA, NEA/ARP, EB 
DEPT PASS TO USTR - JASON BUNTIN 
 
E.O. 12958: N/A 
TAGS: ETRD, WTO, USTR, TC 
SUBJECT: UAE opens its telecommunications sector 
 
1. (U) On April 12, UAE President Zayed bin Sultan Al- 
Nahayan issued Federal Decree 3 of 2004 "organizing the 
telecommunications sector."  According to the UAE's official 
news media, the decree revokes Emirates Telecommunications 
Corporation's (Etisalat) monopoly rights and authorizes new 
companies to apply for licenses.  In a second decree, 
President Zayed established a "Higher Supervisory Committee" 
to oversee the telecommunications sector and stipulated that 
this committee would have the authority to grant licenses to 
new firms.  President Zayed also appointed Minister of State 
for Finance and Industry Dr. Mohammed Khalfan bin Khirbash 
to chair the committee and appointed a representative from 
the President's court and the Vice President's court to the 
committee.  (Note: the Vice President is the ruler of 
Dubai.)  Officials at the Ministry of Finance and Industry 
confirmed the news, but were unable to give any more 
details. 
 
2. (U) The decision also set up an authority to issue 
implementing regulations and to monitor services.  We don't 
have any further details yet on how new licenses will be 
issued, although press reports say that they will be issued 
in accordance with the UAE companies' law. 
 
3. (SBU) Comment: This welcome decision caught a number of 
people off guard, and appears to have been made at very 
senior levels of the government.  The breakdown of the 
committee is interesting. Dr. Khirbash is a forward leaning 
technocrat.  Ahmed Mohammed Al-Hamiri represents the 
President's Office and Ahmed Abdullah bin Bayat represents 
the ruler of Dubai (the second most influential emirate and 
the one emirate other than Abu Dhabi with a veto over 
federal legislation).  Etisalat is a successful company and 
a revenue earner for the federal government.  It is 60% 
government owned and, as a monopoly, is required to remit 
half of its profits to the federal government.  The actual 
impact of this decision on the telecommunications sector in 
the UAE will depend on how the decree is implemented. 
Nevertheless, this is potentially a significant step forward 
for the UAE and we believe it reflects the input of Dr. 
Khirbash, who is a major advocate of reform.  We hope that 
more details will be made available by the April 26-27 TIFA 
Council Meeting. 
 
WAHBA 

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