Wataniya's Palestinian GSM Network Launch Delayed
Kuwait's Wataniya, which was supposed to have been granted radio spectrum to launch a second GSM network in the Palestinian Authority has not yet had the spectrum released to it. Palestinians say that the delay is being caused by Israel which is holding onto the spectrum citing security concerns.
"We think [the delay] is political," Suleiman Zuheiry, the Palestinian Authority deputy minister of telecommunications and information technologies told the Washington Times. "All the time, they're telling us that it's a military issue, and the military is using these bands in the Gaza Strip and Southern Lebanon."
The Palestinian Ministry of Telecommunications and Information Technology (MTIT) awarded a GSM/3G license to Wataniya in 2006, after it agreed to pay JD251 million (US$354 million). It was reported late last year that the Israeli government had finally allocated the radio spectrum, but the company has still not managed to launch its network.
The Palestinian telecommunications and economy minister, Kamal Hassouneh said last year that Wataniya is ready to launch its network as soon as the radio frequencies are cleared.
Wataniya Mobile officials estimate the phone network would draw about US$650 million in foreign investment to the West Bank and create as many as 2,500 jobs in the first two years.
Due to the current monopoly and high prices, many Palestinians actually use phone networks from the Israeli operators where they leak across the borders.
The incumbent operator is Jawwal. The Mobile World subscriber database notes that Jawwal is estimated to have just over 1 million subscribers. Within the Palestinian Territories though, some 1.7 million mobile phones are in use. This is due to the Israeli networks "leaking" over the borders and providing service to Palestinians.
Wataniya International has established a new company in Palestine which is 40% owned by Wataniya International, 30% will be offered to the Palestine Investment Fund (PIF) and 30% owned by the general population through an IPO.
On the web: Washington Times - Mobile World
Posted to the site on 3rd May 2008
