MKs to decide on 5th cell phone operator

Today the Knesset Economics Committee will decide whether a fifth operator will join the country's mobile communications providers. The Economic Arrangements Bill accompanying the state budget calls for the entry of a new cell phone player in a mobile virtual network operator (MVNO) arrangement - meaning it will not have its own infrastructure, but instead piggyback off of existing mobile networks.

This week will be the current operators' last opportunity to raise objections to having a new competitor. In mid-July the Knesset plenum will vote on the entire arrangements bill; if it passes, no legal obstacles will prevent a fifth provider from entering the market. A second committee session on the matter is scheduled for Wednesday.

Assuming the legislation passes and the Communications Ministry finishes drafting and publishing the licensing requirements, as it is expected to do within a few weeks, within a month or two the potential new MVNOs can prepare their case to enter the market.

A few companies, including Hot, 012 Smile, Xfone and Israel Post, have expressed interest in becoming the fifth wheel to Israel's mobile communications industry. However, the new player will have to come to an agreement with one of the veteran players over the use of its infrastructure. The law provides for about six months of free negotiations to allow for the players to reach an agreement; if that doesn't happen the government will step in and impose an arrangement.

Today's session will be led by the chairman of the economics committee, MK Ofir Akunis (Likud), and will be attended by representatives from the ministries of finance, communications, environmental protection, the Anti-Trust Authority, all four mobile phone companies, as well as Hot and 012 Smile.