New Mobile Network Starts Operating in Palestinian Territories

­The Palestinian Territories have finally gained a second mobile network after a couple of years of delays caused by disputes over the allocation of the required radio spectrum.

Wataniya Telecom, a subsidiary of Qatar Telecom, reportedly launched its network over the weekend, although the full allocation of radio spectrum has still not been settled. The license was originally awarded to Wataniya Telecom in 2006 for a payment of US$354 million.

Mohammad Mustafa, head of the Wataniya Palestine board, told the Reuters news agency that the firm had begun functioning with a frequency range of 3.8 MHz, less than the 4.8 MHz Israel had agreed to open under an agreement with the Palestinian Authority signed last year.

"They will give us the additional 1 MHz as soon as possible," Mustafa told Reuters, adding that Middle East peace envoy Tony Blair had promised the firm it would acquire the remaining frequency.

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.

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.

Mustafa said Wataniya Palestine would begin operations with 40,000 users who had registered during a promotional campaign launched a month ago. Mashoor Abu Dakka, Palestinian telecommunications minister, said there would be a "long-term battle" for the release of the remaining frequency. "The Israeli side didn't commit to what it had promised. But we wanted the company to become a reality," he said.

Nati Schubert, the deputy general and head of spectrum management and frequencies at Israel's Communications Ministry recently said that the extra spectrum would be released once the Palestinians fulfill unspecified agreements. Contrary to recent reports, these requirements are not said to be related to security issues, although neither side has elaborated any further.

On the web: Mobile World - Reuters

Posted to the site on 2nd November 2009