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Palestinian Cell Saga Continues

By Adam Gonn,The Media Line news agency

Palestinian cell operator officials have turned to the International telecommunications Union for assistance in obtaining the frequencies it needs to become economically viable.

"The Palestinian Authority has turned to the International Telecommunications Union to ask it to intervene in disputes between the Palestinian Authority and Israel on releasing radio frequencies," Sarah Parkes, Spokesperson for the International Telecommunications Union, told The Media Line.

Wataniya Palestine was geared to become the second cell phone operator in the West Bank, and was to provide competition to Jawwal, which until now monopolized the market. But the company and Palestinian Authority officials claim that Israel has not released enough frequencies or air space for the company to be economically viable.

The current allocation of frequencies is not sufficient, the company claims, to sign enough customers to turn a profit.

The International Telecommunications Union is trying to maintain a balanced position.

"ITU has asked both parties to cooperate," Parkes said. "The approach of the ITU is never just to say that one side is going the have and the other is not, it's to find some kind of compromise that will fit both."

"That's the position the International Telecommunications Union always takes, there are sometimes conflicting demands whether its technology standards or desires for satellite position," Parkes said pointing out the 140-year old organization has always been compromise orientated.

Wataniya said it was promised a minimum frequency allocation of 4.8 megahertz in Israel. This was agreed upon between the government of Israel and the Palestinian Authority in 2008.

But so far Israel will only be apportioning 3.8 megahertz and Wataniya says it will withdraw from its mid-October launch and will demand a refund of over $400 million which it has laid out in infrastructure and licensing fees.

The estimated cost of setting up Wataniya Mobile is about $700. In addition to private investors the company counts some very influential people among its backers, as Palestinian Authority President Mahmoud Abbas' two sons, Yasser and Tareq, are both major shareholders in the new company.

The US government and the European Union have been pushing for mobile telephone competition in the Palestinian territories as a way to stimulate economic development. Together with Middle East envoy Tony Blair, they have been pressuring Israel to release the frequencies.

It is the second largest private investment in West Bank history, but the October 15 launch date looks to be endangered by the Israeli threat not to release the full frequencies.

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