Golan Telecom has reached the 7.8% market share

required for the return of its deposit.

Two years after new operators caused an earthquake in Israel’s mobile telecom market, the Ministry of Communications has returned to Golan Telecom Ltd. the NIS 350 million guarantees it initially deposited, after the company has now reached a 7.8% market share. “Globes” several weeks ago reported that the return of the deposit was imminent.

The Ministry of Communications said, “The NIS 350 million guarantees will be converted to NIS 80 million to ensure the company meets the conditions of its license and complete the deployment of its network throughout the country.”

Minister of Communications Gilad Erdan said, “Now the real test of competition begins between the veteran mobile companies and the new ones. We expect the new companies to maintain their market share and even expand, and continue to bring about competition.”

Following the return of the guarantees to Golan and the fact that the company is interested in merging cellular networks with one of the veteran companies, the Ministry of Communications faces the question of how to ensure Golan’s obligation to meet the cellular tender conditions that it won, and whether such a merger cancels the obligation it took upon itself to deploy a national network. At this stage, Golan is delaying its investment in the network until the picture becomes clearer and the Ministry of Communications clarifies whether such a merger is permissible.