ESIS extension / Key Person Contacts and Organisations / Israel / Update Memo 4

The Internet and IT Committee of the Knesset (Parliament) under the chairmanship of M.K. Michael Eitan established professional Working Groups to prepare policy documents for an Information Society policy in Israel. The leaders of the Working Groups are: Internet II: Avi Cohen; ISPs: Doron Shikmoni; Personal Identification: Menahem Guterman; Hi-Tech Industries: David Efrati; ICT in K-12: Dr Hamotal Hameiri and Dr. Edna Yaffe; Teacher's Training for ICT Applications in Education: Dov Winer; Life-long learning: Prof. Michal Beller and Ehud Or; The Digital Divide: Shmil Ginzberg; Electronic Commerce: Hanoch Herman; Legislation: M.K. Eliezer Zandberg; Data Protection: Yossi Margalit; Freedom of Information: Ishai Menuhim; Online Democracy: Vered Malca; The Arab Sector in the Internet: Jaffar Sabah; Regulation: Amir Ezioni.

The new fund was launched by Prof. Zamira Mevorah, the chief scientist of the Ministry of Education and Yaffa Vigodsky the head of the Directorate for Science and Technology. Among the presenters at the inaugural seminar were Prof. Kenneth Price from the Center for Science Teaching at the Ben Gurion University; Prof David Chen, head of the School of Education at Tel Aviv University; Gabi Solomon, head of the School of Education at the University of Haifa; the director of the Ministry of Education, Shlomit Amihai.

2.2 Call of the Council of Higher Education for the development of Internet Based Learning Modules

Ehud Or, consultant for the Council of Higher Education program for the development of Internet based distance education modules announced that the call launched last year received 18 proposals, most of them of very good quality. The call is an initiative of the Council, headed by Prof. Nehemia Lev Zion. Participated in the preparations for this initiative Prof. Michal Beller from the Open University.

The Prime Minister, Ehud Barak intervened in the conflitc between the Ministry of Finances and the Ministry of Communications regarding the extension of the Cable TV concessions and the licensing of the new Internet broadband services. He decided that the Legal Counsel to the Government, Eliakim Rubenstein should provide an adequate solution avoiding a tender and providing adequate compensation. The key officers involved are: Adv. Davida Lahman-Messer, the Vice Legal Consel to the Government that represents the Ministry of Justice in the discussions with the Ministry of Communications; the legal counsel for the Ministry of Finances is Adv. Yamima Mazuz. The main decision in this matter was taken by the Council for Cable and Satellite Broadcasting, headed by Adv. Adv. Dorit Inbar. The legal council for the Ministry of Communications is Adv. Izhar Tal.

The Minister of Justice, Yossi Beilin resigned from the Committee established by the Cabinet to provide a solution for illegal radio broadcasts. He explained it on the unwillingness of the Shas Party to settle in a way to enable the publication of tenders. The Shas Party, one of the main beneficiaires of illegal brodcasting radion stations is a political party - orthodox religious, non-Zionist, with a constitutency of oriental Jews and the third largest representation in the Parliament (17 M.K.s).

M.K. Eli Goldsmidth, chair of the Finances Committee of the Parliament said that a condition for the approval of the Broadcasting Authority budget is the allocation of a larger share for local content production. The chairman of the Association of Cinema Directors, Uri Inbar, was among the leaders of the manifestations demanding that the Cable TV companies comply with the clauses in their licenses regarding local content production; they protested in front of the offices of Eliezer Fishman one of the largest interest holders in Cable TV and other advanced communications media. M.K. Israel Katz was demanded 40% of local productions in the proceeding approving the new commercial channel (Channel 3).

Raphael Vardi, nominated by the Prime Minister Barak to investigate the situation of the Broadcasting Authority presented his report. The report demand the substitution of all the directors as soon as possible including the director of the Authority, Uri Porat; the Chairman of the Board, Gil Samsonov; the director of the television, Yair Stern; the director of the radio, Amnon nadav. Yair Stern already resigned and received the task of preparing the tender for the new commercial channel, Channel 3.

The directors of the corporations concessionaires of the commercial Second Channel are Yohanan Tzeng (Reshet); Uzi Peled (Telad); and Uri Shinar (Keshet). They expressed their opposition to the establishment of the new commercial channel, Channel 3, saying that the Israeli publicity market is unable to maintain two commercial channels.

Avraham Burg, the chairman of the Parliament and Prof. Arnon Zuckerman announced they were against the new commercial channel preferring a public broadcasting channel like the British, Channel Four.

The competition for subscribers among the three international calls intensified: Barak (director, Eyal Arad); Bezeq Beinleumi (director Uri Yogev); Kavei Zahav.

In the wake of the vandals attack on central sites in the US and the planned Hackers Congress in Israel the Science and Technology committee of the Knesset (Parliament) under the chaimanship of M.K. Anat Maor had hearings concerning network security. Appeared in the committee the director of the Unit in the Prime Minister Office in charge of Supervision and Defense of Sensitive Information, Igal Betzer and the president of the Israel Internet Association, Doron Shikmoni. M.K. Maor complained on the lack of cooperation with the committee on Online Defense headed by Gideon Sheffer.

The new chairman of the association of the corporations that use publicity services is Oran Muskat. The other members of the council are Doron Adamati (MATAV Cable TV); Ofer Bloch (Tnuva); Arieh Golan (Dapei Zahav); Eli Gidor (ICE); Michal Harel (Ossem); Rony Weinstein (Visotzky); Oren Zilbershatz (Internet Gold); Iris Zisso (General Health Services); Bezalel Livne (Diners); Carmi Levinstein (Carmel Mizrahi); Eli Meiron (SuperSal); Eliezer Rabin (Elite Insurance);

The Export Institute, a non profint institution under the sponsorship of the Ministry of Trade and Industry, decided to establish a comprehensive Web site for Electronic Commerce announced its director Amir Haiek; the chairman of the Institute, Amir Makov, is heading a committee to examine proposals of business interested in taking part in this initiative.

6.2 The Supervisor of the Banks authorize Internet based banking transactions

Yithak Tal, the Supervisor of the Banks in the Israel Bank announced that it has licensed two banks to provide full money transactions throught the Internet. The banks are Investec Clali (vice director Shuki Oren) and Bank Hapoalim. The officer at the office of the Supervisor in charge of Internet related matters is Gad Marx.

The chairman of the Association of Travel Agents, Mussik Brickman, stated he is not worried about the use of the Internet for tourism transactions. In contrast the director general of the Association, Yossi Fatael said that the agencies should adapt to become travel consultants and get paid for it as the margins for selling tickets will become a much smaller share of their input. The director of the tourism company Natour , Mior Caspi, asked El-Al, the Israeli national airline, not to sell directly to the consumers its tickets using the Internet. The vice director of El Al for commerce, Uri Sirkis, announced that the company is completing the installation of a new system for selling its tickets through the Internet.

A new company, Diamonds and Jewellery View, has developed a technology enabling the examination of diamonds through the Internet.. The chairman is Igal Hoisman, who heads the Association of Diamond Industry. His partners are Lev Levaiev, Shechter-Nemdar Corporation, Shnitzer Corporation and the funds Ipax-Leumi and Warburg-Pincus, the investor Wolfsohn Morris.

WebLife established a Virtual Mall for small businesses. The Sakal Online company was launched by the owners of the large duty free corporation headed by the Sakal brothers, Soli (General Manager) and Meir Sakal. The initiative was well received by its competitors, Best Buy (Director, Ido Mazurski) and the online sales site 522 (Directors - Dan Regev and Arieh Rothenberg; owned by Kesher Barel, Zadick Bino, Ipax and Barak). The largest corporations in the area of E-Commerce are NetAuction (owned by Netvision) and 4Sale (owned by Art-Inn). The director of the company DSL, Amichai Ben Dor, announced an e-commerce initiative, joint venture witht the Sagi corporation. SuperPharm (director Lior Raitblat ) decided to invest on 20% of the ownership of the Virtual Mall of Internet Zahav (Director David Bikovski). Polis-Net and Go-Next announced agreement to offer insurance policies through the Wap Web server to Cellular phone users (Chairmand and Director of Hachsharat Haishuv Insurance, Ron Weissberg). The Postal Authority announced it will enter the area of Electronic Commerce offering services like storage and distribution of merchandise and establishing a virtual mall in partnership with private corporations announced its director, Dan Nadiv.The director, Michael Ben Ami of the Hamer-Cyte corporation for art dealing in the Internet announced good results in its first auction.

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.