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, September 20, 2000




Barak, Cellcom, Ofek plan joint offensive

Companies meet to form a lobby over the granting of high speed Internet licenses

By Hadar Horesh
Ha`aretz Correspondent

Three companies intending to compete in the high speed Internet sector are combining forces to persuade the government to grant them the necessary licenses.

Next Thursday, representatives of Cellcom, Barak International Telephone Communications and Ofek will meet in Cellcom`s offices in Herzliya to plan their campaign to exert pressure on the Prime Minister and the Attorney General`s Office.

The three companies were impressed by a public campaign run by the cable companies which bore fruit last week when Prime Minister Ehud Barak instructed the attorney general, Elyakim Rubinstein to check, as quickly as possible, the necessary legal processes granting the cable companies the licenses to operate high speed Internet.

Ofek and Cellcom have already sent a letter to the Communications Minister, Binyamin Ben-Eliezer, strongly criticizing the injustice of the decision to grant high speed Internet licenses "within weeks" to the cable companies and Bezeq.

The Communications Minister informed the attorney general that granting these licenses would not set a precedent for others seeking similar licenses.

President of Cellcom, Jacob Perry, said in his letter to the communications minister last weekend that the decision to grant Bezeq and the cable companies the high speed Internet licenses would not stand up in court.

The three companies do not have the infrastructure in place to provide high speed Internet to all homes (though Cellcom has a national broadcasting network), unlike the cable companies and Bezeq, but the companies insist that the communications minister allow them to use Bezeq`s infrastructure until they establish their own.

The three companies, Barak ITC, Cellcom and Ofek, also intend to cooperate for the tender for the wireless frequencies that the government will run early next year.

The new frequencies will allow the companies to access their subscribers both by telephone and through broadband Internet by the end of 2001.
 
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