JERUSALEM-The Israeli Ministry of Communications set a maximum uniform call termination tariff for all cellular networks in Israel. The new regulations will take effect Oct. 2.
The rate for incoming calls to cellular phones was set at 13 cents through 2000 and drops to 10 cents by January 2003.
Partner Communications, the country’s third-largest operator, said the regulations could significantly reduce its call-termination revenues over the long term. However, it added the regulations may reduce its competitors’-CellCom Israel Ltd. and Pele-Phone Communications Ltd.-competitive advantages by limiting their ability to subsidize outgoing calls and reducing Partner’s expenses on interconnect tariffs for calls originating on Partner’s network and terminating on competing networks in Israel.
“Partner is examining the legal validity of the regulations and their economic implications and may launch judicial challenge proceedings against the Ministry of Communi-cations,” the company said.
The regulations reportedly will help the country’s fourth cellular operator better compete. A tender for a fourth operator is expected by year’s end.
Israel has one of the world’s highest wireless penetration rates of more than 50 percent.
