Hezi Bezalel is confounding all the predictions that he would not fulfill his undertaking to enter the cellular market. Sources inform "Globes he is today depositing a NIS 96.5 million bank guarantee that he promised the Ministry of Communications when he competed in the frequencies tender and acquired frequency bandwidth. The guarantee consists of NIS 80 million deposited as a guarantee and NIS 16.5 million for the license - half of the amount that Bezalel bid for the bandwidth.
Bezalel is the owner of 018 Xfone. His entry into the cellular market is one of the most intriguing puzzles in the sector, given the fact that the slide in companies' profits has worsened since last quarter. Bezalel is determined to enter the market, as shown by the guarantee he has deposited, which no one other than his associates believed he would provide.
Bezalel is making progress in his negotiations for an agreement to set up a joint network with one of the existing operators, as required by the Ministry of Communications. He is expected to bring his 5-mghz bandwidth to the agreement, and to provide half of the investment for building a 4G network.
Actually, in addition to his guarantee, Bezalel will have to invest hundreds of millions of shekels more in order to enter the market and provide cellular services, at a time when the cellular market is sinking dramatically and operators are halting their investments.
In a talk with his associates, Bezalel said that he is unconcerned about the erosion in the companies' profits, and that in the long term, a correction will take place that will raise prices to a reasonable level.
The other cellular operators are due to deposit money today for the frequency bandwidths they acquired in the 4G tender at the beginning of the year.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2015
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