Spectrum struggle continues in Palestine

The CEO of Wataniya Palestine, Allan Richardson, said mobile
services could commence in the West Bank by the end of the year if Israeli authorities release the necessary spectrum.

Earlier this year, after reviewing the telecoms sector in the West Bank and Gaza, the World Bank urged Israel’s communication ministry to release frequencies to Wataniya, Palestine’s second licensed mobile operator. However since the signing of the licence agreement in March 2007 with Palestine’s telecommunications ministry, the frequency issue remains unresolved.

Wataniya was issued the GSM/3G licence in 2006 for JOD251 (US$354 million) in anticipation of bringing competition into Palestine’s telecoms sector. Fixed and mobile services are currently
operated by Paltel Group, which does face unofficial competition
from Israeli mobile providers within Palestinian territories.

The World Bank estimated that the delay in the assignment of spectrum to Wataniya Palestine could cost the Palestinian Authority
up to US$13m in the first year and US$28m in the second year of delay.

The delay also means that the Palestinian Authority has not yet received the US$354m sale price and Wataniya is reported to have made little of the US$600m in investment it had pledged to.