Israel has reportedly welcomed a fifth entrant to its mobile market, after local firm Golan successfully paid a ILS 360m (US$105m) deposit for its 3G licence.
Golan, which reportedly plans to launch commercial 3G services early next year, deposited the…
Israel has reportedly welcomed a fifth entrant to its mobile market, after local firm Golan successfully paid a ILS 360m (US$105m) deposit for its 3G licence.
Golan, which reportedly plans to launch commercial 3G services early next year, deposited the guarantees needed to secure the licence on 31 July, reported Reuters citing a government official.
The company is backed by Xavier Niel and Mickael Boukobza, respectively the founder and former head of French ISP Free’s parent company Iliad.
Israel’s new 3G award brings to an end months of disarray, which saw telcos winning approval for the licence, only to lose it after failing to meet the financial requirements.
Back in April, the country’s Ministry of Communications auctioned licences for two new mobile operators. Local cellco Mirs Communications and 018 Xfone won the auction, but the latter failed to secure the bank guarantees it needed to fulfil its obligations.
Xfone’s licence was then initially given to next highest bidder, Select Communications, which was also unable to stump up its deposit.
Golan was the next in line for a chance to win 3G.
The auction is part of the regulator’s efforts to increase competition in its telecoms sector, and follows a raft of recent MVNO agreements and plans to cut interconnection rates by 80 per cent.
Its winners join Cellcom, Pelephone and Partner Communications.
Israel’s Ministry of Communications was unable to comment before the press deadline.
