Israel Telecommunication Corp, Bezeq, has announced that the Tender Committee notified its mobile subsidiary Pelephone on July 17, 2023, that it has successfully secured a series of frequencies in the 5G 26 GHz spectrum band, following its participation in the tender process.
Pelephone's 5G Frequency Win
According to the Tel Aviv Stock Exchange filing, the allocated frequencies include 800 MHz in the 26 GHz frequency band, which will be valid for a license period of ten years. This allocation does not result in any changes to Pelephone's current license as a cellular operator and is subject to renewal according to the provisions of the license.
Expanded License and Payment Details
As part of the tender results, Pelephone is required to make a payment of ILS 4.16 million for the acquired frequencies. The payment is scheduled for 60 working days after receiving the notification from the Tender Committee. However, the expansion of the license based on the tender results is contingent upon the approval of the Minister of Communications, in line with the terms specified in the Tender.
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5G Technology for Broadband Services
Bezeq said with the acquisition of these frequencies, Pelephone will be able to enhance its 5G cellular network and broaden the range of advanced services it offers. The emphasis will be on expanding private networks and providing advanced services that required high broadband speeds, particularly beneficial for applications like those used in hospitals.
Bezeq has stated that the process of integrating the 26 GHz frequency range into 5G technology is ongoing and is not expected to cause a significant financial burden.
Allocation of Spectrum to Entities Other Than Telcos
Bezeq also added that in addition to the successful tender outcome, the Ministry has recently issued a policy document outlining the rules for allocating the 26 GHz frequency band (and 2100 MHz narrowband) for entities other than cellular operators or domestic carriers. These frequencies will be used for the operation of local private networks (polygon area) on a project basis.
It is expected that implementing this policy will require relevant regulatory adjustments, but it is not foreseen to have a significant impact on the overall business of the Company, Bezeq noted.
