The Ministry of Communications has decided in principle to forego control over international calls from Palestinian Authority territory. The ministry will allow Palestinian communications operators to provide independent phone links without going through Israeli international calls carriers.
The decision is politically significant. Israeli international calls carriers will also suffer substantial losses in revenue, although the exact amounts are uncertain.
Currently, the Ministry of Communications distinguishes between voice and data traffic on international calls. The ministry permits Internet service providers (ISPs) to connect directly to Mediterranean Nautilus Ltd., which operates the undersea communications between Israel and the rest of the world, and buy transmission from it. However, a company that wants to provide international calls services must go through an international calls carrier.
Currently, the Ministry of Communications will now allow the Palestinian Authority and Palestinian communications companies to connect directly overseas, without the need to go through international calls carriers. Storm Communications Ltd. is a new Israeli venture that enables this.
Storm Communications has obtained a license to link the Palestinian Authority to Jordan via the fiber optic cable network of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR). Other Israeli international calls carriers may also link up to this network to Jordan and from there to the rest of the world, if Storm Communications offers prices that are competitive with Mediterranean Nautilus. The Ministry of Communications will have to examine this issue as part of the new venture.
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2008
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