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Wednesday, January 31, 2001
Paltel and Bezeq to sever operating ties
PA proposes new 01 area code for Arab and Jewish neighborhoods of East
Jerusalem.
By Ora Coren Ha'aretz Industry Correspondent
DAVOS, Switzerland - Israel and the Palestinian Authority have agreed to
sever ties in the communications sector but the plan has been stymied
because they have not yet found an agreed solution on service to Jerusalem
residents.
Zahi Khouri, CEO of the Palestinian telephone company, Paltel, and
chairman of its cellular telephone network, Jawwal, revealed the plan to
Ha'aretz at the international Economic Forum in Davos.
Khouri is a leading Palestinian business figure who, apart from heading the
two Palestinian telecommunications monopolies, is also chairman and CEO
of National Beverage Co. Ltd., the exclusive licensee of Coca-Cola in the PA.
He is on the board of numerous companies abroad and formerly served as
vice president for American Express in the Middle East.
He said the Palestinian Communications Ministry had submitted a
compromise proposal to the Israeli Communications two months ago, but
has not received any response. He said the proposal suggested giving a
special and equal status to residents of Arab and Jewish neighborhoods in
East Jerusalem, who would be served by a new area code, 01, instead of the
present 02 Bezeq code which serves all of the city.
Under the Palestinian proposal, residents of east Jerusalem who want to call
Tel Aviv would have to dial the international code for Israel (972) while those
who wanted to call Ramallah would dial the international code for the PA
(970). The calls would be charged as a domestic call. Billing would be done
by Bezeq, which would hand over Paltel's share of revenue to the Palestinian
phone company.
The Palestinians propose such an arrangement should remain in force until a
political decision is reached on the final status of Jerusalem. The
compromise that the Palestinians are suggesting would allow Paltel to
operate as a company in an independent state.
Today, calls from abroad dialed using the 970 international code for the PA
are actually carried on Israel's Golden Lines, which directs the calls directly
to the PA. Their passage via Israel is obligatory under the Oslo Accords.
Khouri stressed that the commercial ties between Bezeq and the PA are
actually with Paltel, not with the PA. When there is a Palestinian debt to
Bezeq, it is paid by Paltel, not by the PA, he explained.
He said ties between Paltel and Bezeq were good, adding that he would
shortly be meeting with Bezeq CEO llan Biran to clear up matters between
the two companies. He added that this month Paltel's international call
contract with Golden Lines expires. He said Paltel was in contact with
Israel's three international call operators for a new contract. "Golden Lines is
an excellent partner, but Paltel will choose the best offer that it gets," Khouri
said.
He also expressed satisfaction with Paltel's cooperation with Partner (the
two companies have a roaming agreement). However he was critical of
Pelephone and Cellcom, accusing them of pirate interference on PA
frequencies. "I would be very surprised if Cellcom can sell in France without
coordinating with the French government or in Egypt without coordinating
with the Egyptian government," he said.
He said Paltel could technically reach customers in Israel and provide
cellular phone service to Arab residents of Israel. But he said he was not
planning any such tit-for-tat actions.
Paltel is controled by Padico (Palestine Development and Investment
Company), Arab Bank, Cairo Amman Bank, the PA through the national
company PSCS (which is managed by Mohammed Rashid, economic
adviser to Palestinian Chairman Yasser Arafat) and shareholders. The
company trades on the Palestinian stock exchange in Nablus.
© copyright 2000 Ha'aretz. All Rights Reserved
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