Israel is taking part in a call for tenders for a 5G mobile network and its launch is scheduled for 2020

JERUSALEM: Israel has launched a call for tenders for fifth generation (5G) cell frequencies on Sunday, July 14, in the hope that discounts for short-lived mobile operators face the odds. fierce competition will attract bids.

The telecommunications regulator expects three groups, including several operators, to reduce their costs. It is expected to announce the winners by the end of the year with a commercial launch starting in 2020 and continuing until 2023.

"We are aware of the current financial situation of the companies and the call for tenders takes this into account," said Communications Minister David Amsalem.

The ministry said the 5G was needed to develop health, agriculture and education, as well as smart cities and autonomous cars.

The three major Israeli telecommunications operators – Cellcom, Partner Communications and Pelephone – are struggling to remain profitable in a country with 9 million inhabitants and nine mobile operators after a disruption of the sector in 2012.

During the reshuffle, many new operators have triggered a price war that has resulted in a sharp decline in the number of subscribers, business turnover and profits of the three incumbents. All-inclusive packages for calls, surfing and SMS are offered for 29 shekels, or USD 8 per month.

Mobile phone revenues fell 5.6% in 2018, but operators will likely invest in 5G to strengthen their networks and cope with growing demand, badysts said.

Despite its dynamic technology sector, Israel is lagging behind countries such as South Korea, Switzerland, Britain and Spain that have already begun deploying 5G services, which are at least 10 times more faster than the 4G.

As part of this call for tenders, Israel is auctioning frequencies between 700 MHz and 2100 MHz, also used for 4G, at 2600-3800 MHz, which will be used exclusively for 5G services, such as autonomous cars.

Israel offers incentives of up to 500 million shekels (US $ 141 million), including postponing the need to pay the license until 2022. The Ministry of Communications will provide subsidies to operators who deploy at least 250 5G antennas.

"We have built the call for bids so that it costs nothing to the companies," said Ofer Raz-Dror, deputy director general of the ministry, adding that Israel would not follow the Calls for high price offers in Italy and Germany.

Cellcom and Partner, have declined to comment on their plans, but their smallest rival, Golan Telecom, has announced that it would bid jointly with Cellcom. Another supplier, HOT Telecom, has bid with Partner. Pelephone, a unit of Bezeq Telecom, has also announced its participation.

"Golan will participate in this tender because (…) it is important for us to be at the forefront of progress and to provide our customers with a quality network," said the company.