MIRS, which was recently awarded a cellular license has written to the Communications Ministry asking for a different payment schedule. MIRS is asking for no up front payment, but an annual royalty based on the company turnover. We think the payment should be a function of success, especially given the uncertainty of the 3G future, said MIRS general manager Shimon Tal.
This is not the first time that MIRS has proposed the royalty format. The Communications Ministry has already blocked the proposal, and there is nothing to suggest that they will have a change of heart.
Pelephone, the CDMA network has decided to only bid for 3G spectrum, while Orange and Cellcom are bidding for spectrum in both the 2G and 3G bands. Orange is understood to be interested in additional capacity for its GPRS service, while Cellcom is migrating from TDMA to GSM and is already short of radio spectrum.
The Communications Ministry also said that it will investigate the possibility of allowing 3G infrastructure sharing, but no decision is expected for several months.
