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More competition in the Israeli cell phone market? Not just yet…

Posted on August 14, 2007 • By Miriam Schwab
Category: Business Leave a Comment

Have you ever noticed how all three cellphone companies in Israel happen to raise their fees all at the same time, and to the same exact price? Coincidence? I think not. The same type of simultaneous price-raising happens in the banking sector too.

We could use a little more competition…

Well, it’s not going to happen just yet, but hopefully soon. A WiMAX frequency tender was supposed to be part of the government’s 2008 economic arrangements bill, but has been dropped at the request of Minister of Communications Ariel Atias (I wonder who he’s been hanging out with). This tender would have allowed the creation of broadband wireless networks, which would compete against the cellular operators. The three main cellular operators – Partner, Cellcom and Pelephone, would not have been allowed to bid for this tender because only companies holding less than 25% of the market share could bid in order to allow for greater competition in this sector.

According to Globes, a WiMAX frequency tender will probably be held, but when that will “probably” be is anyone’s guess. In the meantime, I’m just waiting for the next coincidental price hike…

Guy Hadass, “WiMAX tender off economic arrangements bill,” Globes, August 13, 2007.