Israel

last updated: July 31, 2001

December 19, 2001

Israel's Ministry of Communications has awarded third-generation spectrum to the country's three incumbent mobile operators and second-generation spectrum in the 1800 MHz band to Partner Communications Co. and Cellcom. Israel is the first country in the Middle East to award 3G spectrum.

Partner said it will pay the set minimum price of $52 million for its 3G spectrum in five installments through 2006. The first installment for $16.1 million is payable 45 days after the spectrum is formally awarded. Partner's license will be extended through 2012.

Cellcom also paid $52 million for 3G spectrum, while Pelephone paid just more than the minimum price for its 3G spectrum at $53.1 million. The sums are much less than those paid for 3G spectrum in Europe.

Partner and Cellcom also paid about $42.5 million each for 1800 MHz spectrum, which will be used for additional capacity.

September 10, 2001:

The three major cellular operators in Israel, Pelephone, Cellcom and Partner, today bid in the tender for a high-speed cellular 3G spectrum. The operators participated in the tender after the Communications Ministry allowed for payment in installments and split spectrum packages to allow separate bids on 2G (for $40m.) or 3G (for $60m.) packages.

June 13, 2001:

The Israeli Ministry of Communications has altered the conditions for its spectrum auction, based on an allocation of frequencies enabling the operation of 2G and 3G technologies and allowing for expansion of the spectrum allocated for the existing mobile telephone operators to provide 3G spectrum as well as additional 2G spectrum.

The most significant changes to the tender conditions are the decisions to spread the license fee payments for the 3G spectrum out over a period of five years through 2006, and to extend the period from the time a service is commercially provided until provided to all subscribers in the operator's coverage area, from 12 to 24 months. The Ministry also announced that tender winners, which presently hold a general license, would have their license term extended an additional 10 years from the date of the award of the license won in the present tender.

June 13, 2001:

The Israeli Communications Ministry has said it is considering altering the terms for its 3G license auction. The new proposal is to split the auction of the 2G and 3G spectrum, so that bidders do not have to bid for both blocks, and payment would also be in installments, with 60% of the fee payable immediately, and the remainder in 2004.

The Ministry has delayed publishing the final rules of the 3G auction. Reserve price is now set to US$50 million

8th Feb 01:

The government of Israel is to auction four 3G licences in July this year. In a flurry of activity before this week’s national elections the country’s Communications Ministry published a tender laying out the rules of the process and stipulating a minimum fee of US$100 million per licence.