More than a month ago, in a meeting with journalists, Minister of Communications Limor Livnat made only very general declarations, and didn’t relate to the details of any issue. The message was "I’m learning". This week, in her first interview with the press on issues connected to her ministry, Livnat began to show the results of that learning curve. The messages are clear and sharp, and their direction is unambiguous: more liberalization, more competition, more exposure.
< font color=red>Globes: There is a problem with Bezeq. Crossing subsidies, preference for its subsidiaries over the competition in the market, the Ministry isn’t controlling, and may not be able to control.
Limor Livnat: The Ministry of Comunications will begin to act on its regulatory authority soon, not only to enable maximum competition, but also fair competition. I am investigating, among other things, complaints from Cellcom.
< font color=red>Globes: What about the tender for a third cellular network operator?
Livnat:I have asked that a working paper be prepared. I am striving to publish the tender in four months, still in 1996. In 1997, the successful bid will be chosen, and the third system will begin operations at the beginning of 1998. There are currently 800,000 cellular subscribers in the country and the potential market is very big. There is a principle here: In any place there is a monopoly or a duopoly, real competition cannot take place. If I got disconnected today for thirty seconds twice during a Pelephone call, that is a sign that Pelephone has improved its service, not by enough though.
< font color=red>Globes: You wanted to end the issue of the debts the Palestinian Authority owes to Bezeq, setting them off against the tax returns the PA receives from Israel.
Livnat: First of all, there are talks, and they transfer small sums which do not cover the debt at all. There is currently no practical solution, but attempts are being made and many options examined, both by the Ministry of Justice and the Ministry of Finance. Unfortunately, I have found that it is impossible to set the debts off against other payments.
< font color=red>Globes: What sort of privatization will take place in Bezeq?
Livnat: Everything is still under discussion. There are two central possibilities on the agenda. One is sale of the controlling nucleus. The other is to go public in the US. There is still no decision, but one will be made in the next few weeks.
< font color=red>Globes: Is it possible to separate this from the issue of Cable & Wireless (C&W)?
Livnat: The article which limits holdings of foreign concerns makes me uncomfortable. If we reach an agreement, I will abstain from signing that article. I think there is a certain amount of danger, not only for Bezeq, but also for other companies that face privatization. This is a very problematic message that we are broadcasting to foreign companies that want to invest in Israel.