Esis extension / Palestine Territories / Alternative Networks / Master Report

The Palestine National Authority (PNA) under the Article 36 of the Israeli-Palestinian Interim Agreement on the West Bank and Gaza Strip (Washington D.C., September 28 1995, also referred to as the Oslo II agreement), is legally permitted to "build and operate separate and independent communications systems and infrastructures including telecommunication networks."

The official policy of the Palestinian National Authority is to engage the private sector in all the operational aspects of the telecommunication market in Palestine while at the same time maintain the role of policy making and regulatory monitoring within the Ministry of Post and Telecommunication.

The Telecommunication Law in effect, decreed and signed by President Arafat on the 18^th of January 1996, vests ownership of the sector in the PNA and provided the Ministry of Post and Telecommunication the right to establish, operate and manage telecommunication networks in Palestine and connect these networks internationally. In addition, it allows the Palestinian Legislative Council to grant concessions to public network operators and entrusts the Ministry to issue permits to operate private networks.

The first elected Palestinian Legislative Council (PLC) was initially conceptualized with the Declaration of Principles (DOP). The idea was further developed in the Israel-Palestinian Interim Agreement (Oslo II) in which the structure, jurisdiction, functions, size, and responsibilities of the Council were determined. In fact the Oslo II Agreement was so detailed that one cannot but deduce that this agreement constitutes the terms of reference for the Council. The PLC, as stipulated in Oslo II, is to replace the Palestinian Authority upon it inauguration. As such, the Council is expected to act as the highest authority in the interim phase. The PLC is the body responsible for legislation and from it the majority (80% of the cabinet) of the Executive Authority is appointed.

Since the signing of the Oslo I agreement between the Palestine Liberation Organization and Israel resulting in the establishment of the Palestinian National Authority a number of parties and institutions have influenced the telecommunication sector in Palestine. The extent of the influence of each party has changed from time to time depending on the particulars of the policy or regulation matters in reference to the overall political, social and economic aspects involved. For example, while the technical details of the licensing agreement of the Palestine Telecommunication Company, PALTEL, was handled by the Ministry of Post and Telecommunication, the corporate structure of the company and the limits of its monopolistic activities was decided by the office of the President, through his economic adviser, and influential private sector players.

External to national institutions and players, the Ministry of Communication of Israel continues to play a role in the Palestinian telecommunication sector by virtue of the interim agreement governing the relationships between Israel and the Palestinian National Authority. Its role is particularly prominent with matters that involve international connectivity and spectrum management.

With the establishment of the Palestinian National Authority, the Ministry of Post and Telecommunication assumed the role of the regulator. While the official policy of the Palestinian Authority is to engage the private sector in all operational aspects and thus establish a regulatory framework adequate for a liberalised market it is evident that the framework does not exhibit coherence or maturity for stimulating the required activities of the private sector. The only sizeable regulatory activity was issuing the license agreement of the Palestine Telecommunication Company, PALTEL, as a provider of telecommunication services. Neither the scope nor the characteristics of the license have been publicised.

2. Inventory of the major "public" utilities with a potential for use in I.S. applications

The current telecommunications inter-city connections in the Palestinian Authority Areas is almost entirely dependent on the Israeli infrastructure. This situation is a result of over 30 years of Israeli occupation to the West Bank and Gaza (WBG). The Palestine Telecommunications Co. (Paltel) is currently in the process of building an independent Palestinian infrastructure that will enable it to disengage from the Israeli network.

The Palestinian dependency on the Israeli infrastructure certainly has advantages. Israel has one of the most advanced telecommunications infrastructures and services in the region, and through the links between the two networks, the PA areas have access to most of these services. Data communications or leased lines are amongst these services. Through Paltel, it is now possible to obtain practically unlimited data communications bandwidth. Paltel has obtained the hardware that enables it to interface with the Israeli network, and resell it to Palestinian end-users. A Palestinian user requesting a link between two Palestinian cities is being charged for going through two telecomm operators (Paltel and Bezek). This has made the cost of these inter-city lines expensive.

There are four types of data communications connections that will be used by PASNet. They are inter-city leased lines, intra-city managed leased lines, intra-city non-managed leased lines, and frame relay leased lines.

Inter-City Managed Leased Lines: the Palestinian Inter-city leased lines are managed point-to-point leased lines that interface with the Israeli network Sefra Net. Paltel provides terminal equipment at each end, which interfaces with a router. Each connection thus requires two routers, one on each end.

Intra-City Managed Leased Lines: these are identical to the inter-city leased lines, but run through the Palestinian network only. They are thus significantly cheaper to lease and operate.

Intra-City Non-managed Dedicated Lines: the Palestine Telecommunications Company, PalTel, offers a service for providing a direct and dedicated telephone cable between two sites within a city. The fees for this service are low ($50/month at each end). These lines are capable of supporting data traffic of up to 2 Mbps. If the technical specification of the cable or the distance does not permit the use of these lines, a managed leased line may be used between two points within a city.

Frame Relay Network: in areas that are serviced by an Israeli Telecommunications operator, a frame relay network is available besides the point-to-point lease leased line. The major consideration for a frame relay network is that if a connection between more than one site is to be established, only one router will be needed at each site. Paltel is currently in the process of developing a Palestinian Frame Relay Network.

The Palestine Telecommunications Company, Paltel, offers a leased line service between the ISP and the client. Their charges are based on the amount of bandwidth, or data that the client intends to carry across their lines, it also depends on the type of services and the location.

Guillat, an Israeli company that offers satellite connectivity between a client and the ISP. Before leased line services became available through Paltel in 1997, this used to be one of the few available options for on-line Internet access. A client would use the satellite to link to Guillat’s earth station, and then a leased line through the Israeli network will provide connectivity to the ISP. In general this is a relatively versatile and inexpensive solution. It is mainly used for on-line Internet services in areas that do not have other means of on-line Internet services. The main problem with this service is speed. Even though the company that offers this service claims to provide a down-link of 128Kbps (incoming traffic), and an up link of 38Kbps (outgoing traffic), the actual performance is much slower.

Wireless modems: like the name implies, this technology allows users to connect to the ISP using special modems that do not require wires or cables. This technology was used very heavily in the PA areas to provide Internet access to institutions and service providers in the period between 1996 and 1999, as it was the most practical solution for on-line internet access. The advantage of wireless modems is it does not rely on a carrier like a telephone company, and thus there are no monthly charges for the service. The disadvantage is that it requires a high maintenance and is subject to weather conditions. Wireless technology is also used for short distances (up to 6 Kms.). The Palestinian Ministry of Telecommunications is trying to limit the use of wireless modems for Internet use.

The Palestinian Energy and Environment Research Center (PEC) was established in December 1993 in Jerusalem, in accordance with the decision of Yasser Arafat, President of Palestine, in order to prepare studies and proposals about the needs of the Palestinian community for energy resources, traditional and non- traditional. PEC as a national independent organisation has a full authorities and responsibility in the issues of energy and related environment, and to take care of the development of renewable energy issues, as well as energy conservation.

In July 1996, the center became part of the President’s Office, and subject to the decisions made by the President himself. The Center has finished the plans and studies to provide electricity to the remote communities in Palestine, by using the Solar, Wind and Biomass energy. By this time, nine locations including schools and clinics, had been provided by using Solar energy. The success of this project has a very substantial effect on the life of those communities. Moreover, the center has began another national project for three years, in which 200 KWp of Solar energy will be installed in Palestine, this project is considered one of the biggest in the Middle East.

The centre provides consultancy and support to the PNA in implementing the plans and projects in the distribution and consumption of energy sector and also to ensure the implementation of the energy policy and to enlarge the international co-operation.

The centre, in co-ordination with all the Palestinian Ministries and national institutions, is executing many projects in Palestine, among them are:

Until now there is no cable TV in Palestine. It is not yet clear if the three cable TV companies in Israel (Aruzei Zahav, Matab and Tevel) provide any services in the areas of the Palestine National Authority (PNA).

Please note that this report has been prepared under the sole responsibility of the ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.