Ministry of Communications: freezing the 5th generation tender will damage the economy

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by Ifi Reporter Category:Communication Dec 29, 2019

The Ministry of Communications responded to the administrative petition filed earlier this month by telecommunication companies Cellcom, Golan Telecom and Expon to the District Court in Jerusalem with a request for an interim order and to freeze the procedure for the 5th generation tender.
The companies argued that the firm chose to try a new and complex tender method known as a "combinatorial watch auction" that has never been tried in Israel and may violate the principle of equality and competition and lead to absurd results.
The state replied that "the Tender Committee chose the tender model through an economic sub-team and a game theory expert on its behalf.
According to the state, "there is no alternative model that can provide a better answer." She also emphasized that "a simulator was built that simulates tender laws, and a number of dummy auctions were attended by members of the Ministry of Communications and the Ministry of Finance (all of whom achieved effective results in terms of allocation of frequencies)."
"The model chosen by the commission is a common and widely accepted model in the world," the state wrote in response to the petition, "especially in the field of frequency allocation. This is not an 'experimental' or 'esoteric' or a neglected model. The opposite is a recognized model that is gaining momentum in recent years. And in 2020-2021 at least four EU countries are planning to use it for frequency tenders. "
The companies further argued in their petition that the tender allows for offensive and unreasonable results. The State responded that "the scenario described in the Petitioners' Opinion is an exceptionally unlikely end scenario that expresses the irrational behavior of the bidders described therein. Extremely extreme cases can be presented, and obviously there is no extreme case to indicate the reasonable scenario."
The state contended that "a number of significant defects have occurred in the petitioners' opinion, for which the scenario described below is unreliable and the likelihood of its actual realization is slim.
The state also added: "A tender document was published for public scrutiny and cellular companies as early as December 2018. The petitioners lingered for a considerable period of time before responding to the respondents, and their application was made" in the 90th minute ".
"This conduct" indicates, according to the state, that "in the background of the whole process, the purpose of the cellular companies is to delay the tender procedures as much as possible, and may even try to reduce the competition in the tender, for their own reasons.
According to the state, "Unjustified delay in the auction will lead to damage to the economic growth of the economy and the welfare of Israeli residents. The delay will cause damage directly and indirectly to the state as a result of the lack of advanced communications networks that will hurt product growth, foreign investment and industry development."
The six existing telecommunications companies today can access the 5th generation tender, in three groups, according to the existing network division: Cellcom together with Golan Telecom and Akpson; Partner with HOT Mobile and Cellphone alone. In light of the filing of the petition, the Ministry of Communications has postponed the date the teams are required to submit their Jan. 12 proposal. If the court dismisses the petition - it will require Cellcom, Golan and Akpson to bridge the disputes between them and submit a joint proposal in the current model.

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