Golan Telecom Seeking Refund of License Guarantee from Regulator
Published on: 8th Jan 2014
By: Ian Mansfield
Israel's Golan Telecom has approached the telecoms regulator seeking a refund of the bank guarantee that it had to put down when awarded its license in lieu of meeting its network rollout targets.
The company had to place a bond of NIS 360 million (US$105 depost) with the regulator, but has now met both the coverage and revenue targets that the regulator imposed as part of its operating license.
The company was also required to reach at least a 7% market share, and it ended last year with 390,000 customers, meeting that target.
Citing unnamed sources, Globes reported that having met the targets, the mobile network is seeking a release of the bank guarantee.
The company is expected to rein back its aggressive marketing and pricing policies which it used to sign up subscribers as the imperative to secure the bank guarantee refund would have been met. That in turn could be positive for the other mobile networks as competition may be slightly eased.
The cost pressures on the networks are also expected to be lowered going forward as several are in infrastructure sharing talks. Golan Telecom is currently talking to Pelephone and Cellcom about LTE sharing, although those talks are still ongoing.
On the web: Globes