US embassy cable - 04COLOMBO1308

UNCLAS COLOMBO 001308 
 
SIPDIS 
 
USDOC FOR 4530/MAC/ANESA/OSA 
EMBASSIES FOR FCS OFFICES 
 
E.O 12958:N/A 
TAGS: BEXP, BTIO, MV, Maldives, ECONOMICS 
SUBJECT: IMI - NEW CELLULAR MOBILE NETWORK, MALDIVES 
 
1.  Summary.  The Government of the Republic of Maldives 
plans to liberalize the cellular network and invite a 
second operator.  This will present business opportunities 
to US telecommunications service providers and equipment 
manufacturers.  End Summary. 
 
2.  The Government of the Republic of Maldives (GORM) plans 
to liberalize the mobile telephone network, by issuing a 
license to a second mobile provider.  The 
Telecommunications Authority of Maldives (TAM) has recently 
called for expressions of interest from interested parties. 
US based TMG Inc has been selected to provide consultancy 
services on liberalization of the mobile network. 
 
3.  TAM hopes to issue a technology neutral license to a 
cellular mobile operator for an initial period of 15 years, 
for a onetime pre-determined license fee.  The selected 
provider will be expected to meet certain population and 
geographic coverage.  Prospective bidders need to have 
experience in operating mobile phone facilities utilizing 
internationally approved digital communication 
technologies, with at least 100,000 subscribers in service. 
They should also have access to funds needed to construct 
and operate a digital mobile network. 
 
4.  Background:  Telecommunications facilities are well 
developed in Capital Male' and at the tourist resorts.  All 
200 inhabited islands of the country have access to 
telephone services, but in many cases it is comprised of a 
single public pay phone for all residents of the island. 
Mobile phone usage is increasing rapidly.  There are over 
66,000 mobile phone users in the Maldives, compared to 
30,000 landlines.  Mobile phone services are available in 
Male, 85 inhabited islands and in all resort islands. 
 
5.  Currently, Dhiraagu, a joint venture between the 
Government and Cable & Wireless of UK, is the sole 
telecommunications service provider in Maldives.  Dhiraagu 
provides Internet services, and GSM mobile and 
international roaming services.  Dhiaraagu's monopoly over 
Internet services will end soon when a newly licensed 
provider starts operations. 
 
6.  Further information regarding this business opportunity 
can be obtained from Mr. Mohamed Amir, Chief Executive 
Officer 
Telecommunications Authority of Maldives 
Telecom Building 
Male 
Republic of Maldives 
Phone: 960-323344 
Fax: 960-320000 
Email: mobile@tam.gov.mv 
Internet: www.tam.gov.mv 
ENTWISTLE