Michael Golan: Three mobile networks will raise costs

compared with two networks.

If the Ministry of Communications does not allow the consolidation of mobile networks to two, the result will be higher prices not only for 4G, but also for 3G, Golan Telecom Ltd. owner Michael Golan warned Minister of Communications Gilad Erdan during a visit to the carrier’s offices in Tel Aviv on Tuesday.

Sources at the meeting said that Golan told the Ministry of Communications officials that three mobile networks would increase set-up costs compared with two networks, and the carriers would not be able to maintain the current low prices.

Golan Telecom has signed an agreement to establish a joint 4G network and passive 3G site sharing with Pelephone Communications Ltd. and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL). The Ministry of Communications and the Antitrust Authority have to approve the agreement.

Michael Golan said that his company has met all its license conditions and that its investment in coverage, either by building antennas or purchasing coverage and inland roaming services from other carriers, does not contravene the license. He said that the investment in roaming services and 4G under the agreement with Pelephone and Cellcom was proof that the investment met the Ministry of Communications’ conditions.