HAIFA, Israel-Elbit Ltd., a communications company in Israel, announced it has formed a joint company with Hutchison Telecommunications Ltd. and Matav-Cable Systems Media Ltd. to bid on a cellular license tender in Israel.
The country’s Ministry of Communications issued the tender to attract a third cellular operator to build a Global System for Mobile communications network. Elbit also is developing ATM technology for use in local and wide area networks products to transfer data, voice and video.
The tender is expected to be awarded next year.
Pele-Phone Communications is currently the largest cellular carrier in the country with 580,000 subscribers and nationwide coverage, owned by Motorola Inc. and the Israeli government-owned Bezeq. The company has been working to establish a dual Code Division Multiple Access/Narrowband Advanced Mobile Phone Service network as well.
Israel’s second cellular provider is a consortium called Barak I.T.C., 46 percent of which is owned by Global One-a venture between Sprint Corp., Deutsche Telekom and France Telecom. Clalcom Ltd. and Matav, both Israeli cable television service providers, also are involved in the consortium.
The country’s domestic communications market is expected to open to competition by 1999. The Israeli telecom market is valued at some $750 million. Pyramid Research reported that cellular penetration in the country increased from 8.2 percent at the end of 1995 to 18.9 percent at the end of last year and that Israel’s cellular operators have invested $1 billion in their networks.
