ROSH HAAYIN, Israel-Israel’s Ministry of Communications has awarded third-generation spectrum to the country’s three incumbent mobile operators and second-generation spectrum in the 1800 MHz band to Partner Communications Co. and Cellcom. Israel is the first country in the Middle East to award 3G spectrum.
Partner said it will pay the set minimum price of $52 million for its 3G spectrum in five installments through 2006. The first installment for $16.1 million is payable 45 days after the spectrum is formally awarded. Partner’s license will be extended through 2012.
Cellcom also paid $52 million for 3G spectrum, while Pelephone paid just more than the minimum price for its 3G spectrum at $53.1 million. The sums are much less than those paid for 3G spectrum in Europe.
Partner and Cellcom also paid about $42.5 million each for 2G 1800 MHz spectrum, which will be used for additional capacity.
Cellcom, which currently operates a TDMA network, said it has 2.2 million customers as of December. BellSouth Corp. owns 34.75 percent of Cellcom. Pelephone, owned 35 percent by Hutchison Telecom, offers GSM and HSCSD service and had 1.65 million users as of July. Partner, owned 50 percent each by Bezeq Telecom and Shamrock Holdings, has 1.3 million subscribers and operates a CDMA network.
