Prime Minister Ehud Barak today rejected the demand of Minister of Communications Benjamin Ben-Eliezer and Minister of Finance Avraham Shochat for the immediate granting of short-term nationwide communication operator licenses to the cable companies. The proposed licenses would be valid for the period of the cable companies’ franchises, in order to allow them to provide high-speed Internet and create competition with Bezeq’s high-speed Internet services.
Ben-Eliezer and Shochat, supported by Anti-Trust Authority director general David Tadmor, proposed the appointment of an arbitrator or mediating expert on the issue of the compensation to be paid by the cable companies to the State for the licenses. The cable companies have undertaken to finance the cost of the arbitrator or mediating expert and to accept his ruling, and have even provided guarantees.
Attorney General Elyakim Rubinstein opposes granting short-term licenses and the appointment of an arbitrator, calling for continuation of the legislative process for amending the Communications Law in the Knesset and the appointment of an assessor to determine compensation, as stipulated by the Law. Rubinstein’s position was published as a legal opinion.
”Globes” has learned that Ben-Eliezer’s main argument for overcoming Rubinstein’s opposition is that the upcoming elections will almost certainly prevent the passing of Amendment #24 to the Communications Law allowing the granting of nationwide communication operator licenses to the cable companies during the current Knesset term.
Barak accepted the objections of Attorney General Elyakim Rubinstein, calling for legislation and appointment of an assessor for the value of the licenses, according to the proposed amendment.
Published by Israel's Business Arena on December 5, 2000