The tension continues between the IDF Homefront Command and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), which is refusing to participate in a series of tests of the SMS alert system being conducted by the Homefront Command. In these messages, the Homefront Command sends emergency alerts regarding incoming missiles within specific areas and about various emergency situations. Partner is concerned that a large number of phones owned by their customers will be damaged. However, the Homefront Command claims that no phones were damaged during the successful test that was held last week in the south with the two other cellular companies, Pelephone Communications Ltd. and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL).
At the beginning of next week, the Homefront Command will hold its yearly "Turning Point 5" exercise, during which it will once again test the emergency SMS alert system. Cellcom and Pelephone both announced that they will participate in the exercise. Partner refuses. Senior officers reacted by saying, "Partner is unnecessarily afraid of the test." These officers blame the Ministry of Communications for not forcing Partner to participate in this test, which would provide their customers with life-saving warnings. One senior officer said, "In the US this would never have happened, because everything there is regulated. The Ministry of Communications apparently has no real power over the cellular companies and is too weak to affect any changes."
Alternative to Sirens
According to data compiled by the IDF, 45.5% of the cell phones that are currently being used, are technically capable of receiving emergency alerts. These alerts benefit people who are located in the specific locality where there is a missile alert, but who didn't hear the siren because they were in a closed space or in a car.
"From the data processing that we did regarding cellular phone companies, we have learned that the average Israeli citizen replaces his cell phone every 18 months. There are currently 10 million cell phones in the Israeli market. According to our calculations, within three years we could ensure that every unit sold will have the technical ability to receive these messages, since each unit will include the software that allows receipt of these alerts. Unfortunately, Partner has not agreed to start this process. The IDF has already invested NIS 27 million in order to promote this emergency SMS alert program to cellular phone customers. Partner is unwilling to cooperate. This is a crazy situation that no one is taking control and forcing them to cooperate," said the officer.
Ministry of Communications officials responded angrily, claiming that the ministry has been following the Homefront Command project and understands its significance. However, the ministry insists that it has no tools to force Partner to install the above-mentioned software on its phones, since this is not stipulated in their permit. "It is a tremendous shame that unidentified officers are hurling claims that the ministry is powerless. They should do their own work, and not judge others. They shouldn't slander us; instead they should be out stopping the next Marmara," the ministry official said.
Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2011
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