Israeli telco Partner Communications has failed in its attempt to get the Ministry of Communications to revise the terms of the 4G spectrum auction currently underway.
A ministry spokesperson confirmed that Partner, which operates under the Orange…
Israeli telco Partner Communications has failed in its attempt to get the Ministry of Communications to revise the terms of the 4G spectrum auction currently underway.
A ministry spokesperson confirmed that Partner, which operates under the Orange brand, made a last-minute request to have the terms changed.
However, the auction has gone ahead as planned.
Bidding began this morning and is expected to finish either later today or tomorrow.
Yesterday, local business publication Globes reported that Partner had contended to the ministry that the auction terms favour smaller rivals Golan Telecom and Hot Mobile, granting them concessions which will allow them to continue to offer reduced prices.
Tel Aviv-listed Partner, in which SB Israel Telecom, Scailex and Suny are the largest shareholders, reportedly asserted that the two newer mobile players should not be protected as they are backed by “international tycoons in no need of help from the Israeli regulator”.
Golan is backed by Xavier Niel’s Iliad, owner of French market disrupter Free Mobile, while Hot is a subsidiary of international telecoms group Altice.
The ministry said in a statement today that six companies were eligible to take part in the auction. Israel currently has five mobile network operators: Cellcom, Partner, Pelephone, Golan and Hot. Local businessman Hezi Bezalel’s Marathon 018 is reportedly seeking to enter the market.
Eight 5 MHz blocks and one 3 MHz block in the 1,800 MHz band are up for grabs, with bids starting at NIS10m (US$2.5m) per MHz. Under the auction terms, Golan, Hot and Marathon could get a discount on any spectrum they obtain if their market share increases in future.
Cellcom can buy no more than 2×3 MHz of spectrum in the auction as it already has 4G airwaves. Other bidders can acquire a maximum of 20 MHz.
