The Med-1 submarine cable has applied to the Ministry of Communications for an expansion of its IC-1 license to include a permit to lay fibre optic cables from the IC-1 landing stations to Israeli business centres and various industrial parks. The expansion is due to be concluded by the end of 2000, and Med-1 will thereupon be able to provide transmission services in competition with Bezeq, making minimal use of Bezeq mediation.
At the beginning of next week, the cable ship of the Italian company Pirelli??? is due to arrive at Israel's shores and will start laying Med-1's IC-1 submarine cable from Nahariya to Gaza, at an estimated investment of $30-40 million. The cable will also have landing stations in Haifa, Netanya, Herzliya, Tel-Aviv, Rishon LeZion and Ashkelon. Med-1 will start selling cable transmission next April.
Med-1 signed an agreement with Palestinian communications company Paltel, whereby all the international communications of the Palestinian Authority will pass via IC-1 and Lev??? to the world, bypassing the Israeli telephony system. Today, the Palestinian Authority's international communications are transmitted via Golden Lines.
The IC-1 cable is meant to constitute an alternative infrastructure to that of Bezeq with the opening up of the Israeli communications market to competition.
Bezeq general manager Ilan Biran told "Globes", in response to a question about the expansion of the Med-2 license: "I do not oppose anything if I do not know what it is. Med-1 is not a train. It seems to me that this is a company that engages in international communications. It seems to me that Bezeq was not permitted to be a partner in this company, for reasons that are not clear. Now we will move backwards, make our examination and decide".
Ownership of Med-1 is divided between Telecom Italia (23.2%), Clalcom (23.2%), Globescom (14.4%), Aurec (14.4%), Kama Communications (15.6%) and Sita of Cyprus (9.2%).
Globescom is a company under common control with "Globes".
Published by Israel's Business Arena January 19, 2000