Palestinian Authority Aks ITU for Help in Launching 2nd Mobile Network

­The Palestinian Authority has sent a letter to the ITU seeking its help in trying to release radio spectrum controlled by Israel that is required for the territory's second mobile network to launch. The ITU has confirmed receipt of the letter without saying what, if any action it might take.

The Palestinian Territitory has just the one mobile network, although a license was awarded to Wataniya Telecom in 2006 for a payment of US$354 million.

Wataniya Mobile was promised necessary radio spectrum by the Palestinian Authority (PA) under the terms of the ­license, and commitments for a minimum frequency allocation of 4.8X2 MHz were confirmed in a 2008 agreement between the PA and the Government of Israel. The Israeli government recently announced support for an initial allocation of 3.8X2 MHz, less than the minimum required for commercial viability and less than the amounts previously agreed.

"Unless Israel honors its commitments and assigns 4.8 MHz by 15 October 2009, the financial damage to the PA will have serious long-term repercussions," the Palestinian submission said, a copy of which was obtained by Reuters.

"The remaining 1 MHz to 4.8 MHz will take place once the Palestinians fulfill their part of the agreement," said Nati Schubert, the deputy general and head of spectrum management and frequencies at Israel's Communications Ministry.

He declined to say what those commitments were but contrary to recent Israeli reports, they are not related to security.

The incumbent operator is Jawwal. The Mobile World subscriber database notes that Jawwal is estimated to have just over 1 million subscribers. Within the Palestinian Territories though, some 1.7 million mobile phones are in use. This is due to the Israeli networks "leaking" over the borders and providing service to Palestinians.

Wataniya International has established a new company in Palestine which is 40% owned by Wataniya International, 30% will be offered to the Palestine Investment Fund (PIF) and 30% owned by the general population through an IPO.

On the web: Mobile World - Wataniya Palestine - Reuters

Posted to the site on 8th October 2009