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Viewing cable 07JERUSALEM1921, POST ADVOCATES FOR MOTOROLA IN ADVANCE OF SPECTRUM

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Reference ID Created Released Classification Origin
07JERUSALEM1921 2007-09-12 10:52 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Jerusalem
VZCZCXRO5223
PP RUEHROV
DE RUEHJM #1921 2551052
ZNR UUUUU ZZH
P 121052Z SEP 07
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC PRIORITY 9008
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY
UNCLAS JERUSALEM 001921 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
GOLDBERGER/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/WATERS; 
TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON; BRUSSELS FOR 
LERNER 
 
E.O. 12958: N/A 
TAGS: ECPS BEXP EINV KWGB IS
SUBJECT: POST ADVOCATES FOR MOTOROLA IN ADVANCE OF SPECTRUM 
ALLOCATION FOR SECOND MOBILE PHONE NETWORK 
 
REF: JERUSALEM 1453 
 
1.  (SBU) Summary: Econoff and FCS specialist called on Allan 
Richardson, CEO of Wataniya Palestine, on September 5 in 
Ramallah to advocate on behalf of Motorola's tender for 
Wataniya's mobile network construction.  Richardson said that 
Wataniya has chosen Ericsson to construct its West Bank 
network, but that Motorola remains competitive for the USD 
100 million Gaza construction tender.  Richardson said that 
he expects the GOI to allocate the necessary spectrum in the 
coming weeks, allowing Wataniya to begin its West Bank mobile 
network operations.  The Palestinian Authority (PA) Ministry 
of Telecom also expects the frequency to be released by the 
GOI in September, which would trigger payment of Wataniya's 
USD 355 million license fee to the PA.  Within the West Bank, 
the creation of a second mobile network is expected to create 
2500 jobs and USD 150 million of construction contracts. 
End summary. 
 
Wataniya Chooses Ericsson over Motorola 
--------------------------------------- 
 
2. (SBU) Econoff and FCS specialist met with Wataniya 
Palestine CEO Allan Richardson on September 5 in Ramallah to 
advocate for Motorola, who bid on Wataniya's tender for its 
mobile network construction.  Richardson said that Wataniya 
had recently chosen Swedish company Ericsson as the winner of 
the mobile network construction tender in the West Bank.  He 
added that Motorola remains competitive to secure the Gaza 
mobile network construction tender, which is roughly USD 100 
million, yet remains outstanding due to the continued closure 
of Gaza. 
 
PA Requests Release Of Frequencies 
Will Trigger Payment of USD 355 Million 
--------------------------------------- 
 
3. (SBU) Wataniya, despite winning the bid for the second 
mobile operator license in September 2006, has not been able 
to close on contracts to begin its mobile network operations, 
as the GOI has not allocated the necessary spectrum to the 
PA.  Richardson said that he expects the GOI to allocate the 
frequency in the "coming weeks," which will trigger payment 
of its license fee of USD 355 million to the PA Treasury. 
 
4.  (SBU) Deputy Minister of the Ministry of Telecom and 
Information Technology (MoTIT) Sulaiman Zuhairi told econoff 
September 6 that he expects the GOI will allocate the 
frequency in September 2007.  Zuhairi sent a letter to the 
GOI on September 5, repeating MoTIT's numerous requests to 
the GOI since 2003 for the release of frequencies to the PA. 
(Post has emailed a copy of Zuhairi's letter to NEA/IPA and 
Embassy Tel Aviv). 
 
Second Mobile Operator's Economic Impact 
---------------------------------------- 
 
5.  (SBU) Richardson underscored the Wataniya deal's 
potential benefit to the Palestinian economy, stating that 
his company expects to hire directly some 500 Palestinians 
and indirectly another 2000 via telecom network construction 
contracts.  He said Wataniya Palestine plans to invest USD 
150 million in West Bank network infrastructure projects, 
including the construction of towers, antennas, and switches. 
WALLES