Pelephone stumps up bandwidth fees; still seeking discount

20 Oct 2008

Israeli cellco Pelephone has paid fees needed to avoid a delay in obtaining the frequencies for its 3G network, Globes Online is reporting. Pelephone, a subsidiary of fixed line incumbent Bezeq, is reported to have paid the Ministry of Communications (MoC) ILS170 million (USD45.4 million) for bandwidth fees, having already paid ILS200 million for the spectrum itself. Despite the payment, the operator has informed the MoC that it is unhappy about the amounts it has been charged and will seek talks with the regulator; the cellco is said to have requested an ILS4 million discount on the charges although the MoC contends it actually requested a larger reduction. The MoC claims that the charges were calculated taking into account any discount that Pelephone is eligible for; it is believed that the cellco has opted to temporarily delay any dispute with the regulator for fear of a hold-up in obtaining its frequencies.

Israel, Pelephone