For the first time since its launch last year, new carrier Golan Telecom Ltd. has explicitly admitted that, under current conditions, it will not be able to deploy its own network. The announcement challenges new Minister of Communications Gilad Erdan, who will have to make decisions about the commitments of new carriers Golan Telecom and HOT Mobile Ltd. to deploy nationwide independent networks.
In a letter to former Minister of Communications Moshe Kahlon, Golan Telecom president Oren Most blames the government for the carrier's inability to meet its commitment to deploy a network and build antennas. The company says that the government is not doing its bit, and that without a radical change in the licensing procedures for antennas, they cannot be built as the company is required to do.
Most opens the letter with a general overview of the objectives in the telecommunications market reform, and said that Golan Telecom had met its commitments to date under the terms of the tender. "Regrettably, as a result of a lack of decisions and actions by the Israeli government, conditions for the construction of a nationwide network of cellular sites, which the company needs to meet its commitment to cover 90% of the population within seven years, do not exist, and there is expectation that the situation will improve."
Golan Telecom says that it has agreements for the placement of 800 antennas, have of which have already been built, mostly small access antennas. Access antennas are easier to build because of exemptions granted to the new carriers, but it is not possible to deploy a mobile network on this basis, and hundreds of large antennas are necessary.
Most lists the reasons why Golan Telecom cannot deploy its network: the Ministry of Interior's refusal to update Golan Telecom's broadcast frequency in ministry guidelines to local authorities; exorbitant use fees and discrimination by the Israel Land Administration; exorbitant betterment taxes levied by local authorities; and the inability to build cellular antennas on rooftops of buildings of government companies or offices.
Golan Telecom adds that until the government makes amendments, it will write down the guarantee deposited by 75%. The government is due to return the guarantee when the carrier meets its commitment to cover 90% of the population.
Golan Telecom said in response, "The company is working hard to build and deploy antennas, under its commitments with the Ministry of Communications."
The Ministry of Communications declined to comment.
Published by Globes [online], Israel business news - www.globes-online.com - on April 8, 2013
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