Palestinian Wataniya Mobile Issues Deadline for Radio Spectrum Release

Wataniya Mobile, the long delayed second mobile network for the Palestinian Territories has given the regulator a deadline to release the necessary radio spectrum - or it will seek "financial remedies".

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).

Since its license was awarded, Wataniya Mobile has substantially completed construction and commercial preparations for its West Bank mobile network and has invested over US$270m in Palestine to provide its service. The operator is now determined to push ahead with a launch on the 15th October.

Wataniya Mobile was promised necessary radio spectrum by the Palestinian Authority (PA) under the terms of the ­license, and commitments for a minimum frequency allocation of 4.8X2 MHz were confirmed in a 2008 agreement between the PA and the Government of Israel. The Israeli government recently announced support for an initial allocation of 3.8X2 MHz, less than the minimum required for commercial viability and less than the amounts previously agreed.

Speaking on behalf of the Board, Chairman Dr. Mohammad Mustafa, said "WM has demonstrated a deep commitment to developing the economy of Palestine and improving the lives of the region's people. This project is not only important for Palestine but for the international community. A final, timely effort of the region's leaders can make the project a reality."

Palestinian minister of communications, Mashhour Abu Daqqa, told Reuters the Palestinian Authority would ask international powers to press Israel to cover financial costs that would result from a possible Wataniya pull-out from the deal.

"The Israeli side, as usual, is stalling in fulfilling its commitments. The Israeli side should pay for the financial costs, and we will demand that they do so," Daqqa said.

Middle East envoy, and former UK Prime Minister Tony Blair has also reportedly pressed Israel to release the frequencies, as a way to jumpstart the Palestinian economy and boost support for Mahmoud Abbas and his Western-backed government in the Israeli-occupied West Bank.

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: Mobile World - Wataniya Palestine

Posted to the site on 24th August 2009