Are we nearing the much-anticipated 4G tender publication? “Globes” has obtained information indicating that Minister of Communications Gilad Erdan plans publishing the tender next month, and holding it in September. Sources say that all the companies will participate in the tender, and will compete for 5 Mbps deployments on a 1800 MHz frequency. Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) will be limited in the number of deployments they are able to purchase, and all the other players will be able to purchase up to 20 Mbps. In total, there are 34-37 MHz for distribution, and it is not clear whether the Ministry of Communications will allocate frequencies for the railways. The tender will also include 2600 MHz frequencies, which the Israel Defense Forces (IDF) has made available.
The 4G tender is critically important for the telecommunications market, and for the mobile companies. The fact the tender has not yet been published is a disgrace for the Ministry of Communications, which did not have the sense to move quickly and allocate frequencies for the companies. This led to the mobile companies being in an ever-worsening frequency crisis, and the quality of the service that the companies provide is declining steadily. But, most of all, the entire country is suffering terribly, on an economic level, from the fact that there is no 4G in Israel. 4G brings technological advances, will increase cellular use and traffic, and will ultimately contribute to GDP per capita growth.
Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2014
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