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Viewing cable 09BAGHDAD2677, IRAQI TELECOMMUNICATIONS: AT THE FRONTLINE OF THE

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Reference ID Created Released Classification Origin
09BAGHDAD2677 2009-10-05 16:06 2011-08-24 16:30 UNCLASSIFIED Embassy Baghdad
VZCZCXRO2006
PP RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHGB #2677 2781606
ZNR UUUUU ZZH
P 051606Z OCT 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 4954
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
UNCLAS BAGHDAD 002677 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV EINV ECPS EINT KGIT KWIR TINT TSPL
SUBJECT: IRAQI TELECOMMUNICATIONS: AT THE FRONTLINE OF THE 
BATTLE FOR IRAQ'S ECONOMIC IDEOLOGY 
 
REF: A. 09 BAGHDAD 01565 
     B. 09 BAGHDAD 02097 
     C. 07 BAGHDAD 02820 
     D. 09 BAGHDAD 0156 
 
1. (SBU) Summary: Recent developments in the Iraqi 
Telecommunications sector reveal fault lines in Iraq's 
attitudes toward independent regulation.  The Ministry of 
Communication (MOC) continues to actively oppose a private 
sector-led, competitive telecommunications market and an 
independent regulatory authority.  The GOI's Communications 
and Media Commission (CMC), however, is pressing for greater 
authority and believes that the MOC role should be limited. 
Newly re-staffed by PM Maliki, the CMC continues to voice 
strong opposition to the MoC's direct participation in the 
marketplace, specifically, plans for a state-owned company 
for mobile services.  Through the Strategic Framework 
Agreement's (SFA) Information and Communications Working 
Group, post has advocated a strong role for the CMC as an 
independent regulator and opposed the MOC role as a market 
competitor.   End Summary. 
 
The Inequities of the Planned 4th Mobile License 
--------------------------------------------- --- 
2. (U) Often discussed since the issuance of the original 
three telecommunications licenses in 2007 (Ref C), the MoC 
has again proposed a fourth mobile license that would be 
controlled by a new state-owned company.  The MoC would 
partner with an international telecommunications provider for 
the technical and marketing expertise and position itself as 
a competitor with Iraq,s three existing, private mobile 
providers.  While the existing licenses were issued for the 
use of global system for mobile communications (GSM) 
technology, the MoC's new license and company would access 
higher frequency bandwidth capable of greater data speed and 
volume, commonly known as 3rd Generation or 3G.  The MoC has 
provided no indication that existing market participants 
would be allowed to operate on the same 3G spectrum. (Note: 
The GOI included $1.3 Billion from expected proceeds from the 
future sale of the mobile license in its proposed budget 
supplemental in August (Ref B). End Note) 
 
PM Maliki Appoints New CMC Lead and Commissioners 
--------------------------------------------- --- 
3. (SBU) Provisionally established by CPA Law 65 to manage 
Iraq's frequency spectrum and to license and regulate the 
telecommunications sector, the CMC exists now in a legal and 
political grey zone (Ref D).  Though not fully empowered or 
funded by Iraqi law, it retains the authority of a still 
valid CPA directive.  In a welcome and somewhat surprising 
move, PM Maliki recently appointed Dr. Burhan Shawi as the 
CMC CEO, along with four additional CMC commissioners. 
Maliki's decision to breathe life into the CMC implies that 
the concept of an independent regulatory body has some level 
of support in the PM's office.  That said, it remains to be 
seen to what extent the executive branch will empower and 
support the CMC in its political turf war with the MoC.  The 
CMC still faces a number of challenges: lack of full legal 
authority, a staff largely working under contract, and a 
budget derived directly from the parliament and not channeled 
through the MoC. 
4. (SBU) Comment: Few issues cast in sharper relief the 
differences in economic ideologies in Iraq than those in the 
telecommunications sector.  The Iraqi post-colonial, 
command-economy legacy and mindset is widespread, 
multi-generational, and spans all sects and minority groups. 
Iraqis who understand and believe in a private sector-led, 
market-oriented, free-trade future for Iraq are largely 
Qmarket-oriented, free-trade future for Iraq are largely 
outnumbered.  Post will continue to support the CMC and voice 
concerns about MoC plans for a fourth wireless license. End 
Comment. 
HILL