International communications equipment manufacturers are competing in a tender published by Cellcom for setting up an inland communications network to compete with Bezeq. The companies competing are Cisco and Lucent of the US, Alcatel of France, and Nortel of Canada. The tender is still in its initial stage. Two or three of the companies will be chosen during the next month to advance to the final stage of the tender.
Cellcom's new network will be based on the LMDS and WLL wireless access technologies. Cellcom wants to compete in a still unpublished tender for wireless access frequencies.
The four companies competing in Cellcom's tender are at the same time competing in two additional tenders for setting up inland communications networks to compete with Bezeq. The first is a tender published by Tevel Telecom for setting up a communications network for the cable companies. The second is a tender for Ofek, which is setting up a communications network for the Eurocom group.
"Globes" has learned that the four companies are prepared for the possibility that they may win one of the tenders, or more than one. Each of the companies has a subsidiary in Israel, and each plans to reinforce its subsidiary with its own personnel in the event that its wins one of the tenders. All the competitors are offering the companies publishing the tenders supplier financing for purchasing the equipment, and some of them are even interested in entering the groups as an investor.
Cellcom deputy general manager for engineering Lipa Ogman, responsible for setting up the network, told "Globes" that he is not currently interested in increasing the financial volume in the tender. At the same time, "Globes" has learned that the volume of the tender is estimated in the hundreds of millions of dollars. This compares with an estimated volume of $700 million for setting up Eurocom's network.
Published by Israel's Business Arena on April 27, 2000