Sources in the mobile telecommunications sector believe the Ministry of Communications will allocate 4G frequency bands this week to mobile network operators.
The firms wrapped up the tender process for the fourth-generation frequency spectrums back in January, but the roll-out process was delayed after the ministry decided to condition the allocation on a change of terms that operators would not receive discounts on frequency fees under the claim that they were intended for the creation of new mobile networks.
The conditions were fixed in the Knesset's Finance Committee several weeks ago and were published by the Ministry of Justice last week, suggesting that the bands would be allocated to the firms this week and Israel would finally fully join the 4G family.
The allocation by the Ministry of Communications took into account that several of the operators planned to install shared networks. Thus, companies planning to share their mobile network will be allocated neighboring bands to allow them to maximize their bandwidth.
In the future, when operators adopt newer technologies on the 4G spectrum like LTE Advance the importance of the band placement will diminish. But for now, keeping a closely-unified spectrum remains critical, meaning pairings like Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Golan Telecom Ltd. or Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and HOT Mobile Ltd. will be allocated neighboring frequencies.
The mobile operators which purchased the right to use the 4G spectrum back in January were Partner and Hot Mobile, Cellcom and Golan, and Pelephone Communications Ltd.. Israeli businessman Hezi Bezalel who also bought a 4G band is expected to join the fray in the future.
Published by Globes [online], Israel business news - www.globes-online.com - on August 2, 2015
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