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Various types of 4G, 5G relay antennas and data for mobile networks are represented on a relay mast operated by Vodafone in Berlin, Germany, on 8 April 2019.
(photo credit: FABRIZIO BENSCH / REUTERS)
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The Ministry of Communication on Sunday launched a much-awaited call for tenders for the construction of fifth-generation mobile phone networks, offering government incentives worth NIS 500 million ($ 140 million) to the successful bidders.
Fifth generation cellular network technology, called 5G, boasts a speed of navigation about 20 times faster than current 4G networks.
"This is a technological breakthrough that will leave its mark for decades to come," said Communications Minister David Amsalem. "The entry of this new 5G technology will launch the intelligent digital revolution that will affect every aspect of our lives: smart homes, smart cities, smart medicine, closer to the periphery of the center, education, autonomous vehicles, advanced industries, and so on. . "
The frequencies offered by the tender, added the ministry, will increase the capacity of the network and provide a response to the growing demand for broadband communications.
The ministry will grant grants worth up to 200 million NIS. ($ 56 million) for operators building at least 250 5G broadcast antennas.
In addition, while the 5G networks could be launched as early as next year, tender payments will be postponed to 2022 to allow sufficient time for operators to allocate financial resources for the modernization of their networks.
Existing Israeli mobile operators will be able to participate in the bidding by submitting joint proposals to secure a bandwidth from 700 megahertz (MHz) and 2,600 MHz proposed by the ministry.
A bandwidth of between 3,500 and 3,600 MHz will be open to all bidders, which will encourage competition for 5G services and infrastructure.
"The financial strength of [Israeli cellular network] companies at the moment is not a secret and the offer takes this into account, "said Amsalem.
According to a ministry report released earlier this month, mobile phone revenues declined 5.6% in 2018, after falling 4.5% in 2017.
Declining revenues are largely attributable to growing price competition between businesses and consumers switching to almost unprecedented levels.
On April 5, South Korea became the first country to commercially deploy 5G technology, with three mobile operators having launched their services. A few days later, US telecommunications giant Verizon launched its own service in parts of Chicago and Minneapolis.
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