Communications Ministry to allow unlicensed Wi-Fi services

Wi-Fi is a high-speed Internet service for mobile computers at hot-spots, such as cafes, hotels, airports, convention centers, etc.

The Ministry of Communications is about to publish a policy document permitting communications operators and businesses such as hotels and restaurants to provide Wi-Fi high-speed wireless access applications without a license. Wi-Fi uses Wireless Local Area Network (W-LAN) technology.

This is a new high-speed Internet service for mobile computers at hot-spots, such as cafes, hotels, airports, convention centers, etc. The mobile computers' owners can connect to their companies and other information sources without using cables.

Wi-Fi surfing, mainly designed for the business sector, is in wide use at business centers, airports, and central buildings in Europe and the US, although it is not very profitable.

Internet service providers (ISPs) and cellular operators have applied for licenses to provide services for hot-spots, using a limited license-free range of frequencies at the 2.4 Gigahertz bandwidth. A Ministry of Communications hearing found that the ISPs objected to cellular operators receiving licenses on the grounds that they would dominate the market. The cellular operators claimed that they were the only entities technology capable of providing the necessary wireless services.

The Ministry of Communications previously blocked companies like Bezeq International from providing Wi-Fi services without a ministry license, until a hearing on the subject. The ministry apparently accepts the companies' argument that they do not require a license to provide Wi-Fi services.

The Ministry of Communications will revise the operating licenses for the cellular and international calls companies and ISPs to explicitly permit them to provide Wi-Fi services. Private entities will not require a license, since the ministry will consider Wi-Fi services as a type of chargeable telephony service.

Private businesses may offer Wi-Fi services through their ISP. Bezeq (TASE:BZEQ) and the cable companies may provide infrastructure services, but not the Internet link.

Published by Globes [online] - www.globes.co.il - on July 27, 2003

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