Palestinian telecoms companies will now be able to provide 3G services in the West Bank and Gaza after a landmark agreement was signed with the Israeli government.

Palestinian Minister of Civil Affairs Hussein al-Sheikh signed the joint memorandum of understanding with Coordinator of Government Activities in the Territories (COGAT) Major General Yoav (Poly) Mordechai.

COGAT said in a statement that "the decision was made after examination by the security establishment and the completion of professional staff-work with the Israeli Ministry of Communications."

Previously Israeli authorities had only allowed the two mobile operators Jawwal and Wataniya to offer 2G services to subscribers within these territories.

However, these companies have been pushing for a move to 3G in the midst of growing data usage by subscribers.