ESIS II: Regulatory Developments Report - 2. Institutional Structures

Update: July 1999

Israel - Institutional Structures

2. Institutional structures in charge of regulatory issues

The regulator in the area of telecommunications is the Ministry of Communications. For IS purposes we include among the bodies having a regulatory function the Israel Broadcasting Authority (in the Prime Minister’s Office); the Second Authority for Television and Radio (in the Ministry of Education); the Anti-Trust Authority in the Ministry of Industry and Commerce; the Supervisor of the Banks in the Bank Israel (in matters related to electronic banking).

2.1 Ministries in charge of telecommunications issues

Ministry of Communications

Historically, the Ministry of Communications was a division within the Ministry of Transportation, whose responsibilities included post delivery, and telephone and telegraph facilities which had existed since the Mandate period. The Postal division became the Ministry of Posts in 1952, and the Ministry of Communications was established in 1971.

Areas of Responsibility

The Ministry of Communications encompasses a wide and diversified range of activities. Its responsibilities include: formulating telecommunications policies, developing telecommunications infrastructures, supervising Bezeq and other telecommunications service providers, supervising the Postal Authority, setting & auditing Bezeq and Postal Tariffs, managing spectrum allocations, regulating and supervising cable television services and tariffs, approving usage of telecommunications equipment.

Organizational Structure

Office of the Minister - Mr. Benyamin Ben-Eliezer - Telephone: 972-2-6706301

Office of Director General - Mr. Daniel Rosenne - Telephone: 972-2-6706310

Deputy Director General - Adv. Menachem Oholy -Telephone: 972-2-6702250

Office of the Spokesperson and Media Advisor to the Minister - Ms. Tamy Shenkman

Deals with the public presentation of the office, and handles public comments, complaints and requests. Telephone: 972-2-6706323

Engineering and Licensing Division - Mr. Avi Rahav

Participates in planning, designing, licensing of communications services and type approvals for Bezeq telecommunications equipment - Telephone: +972-3-5198230

Telecommunications Equipment Department- Mr. Haim Sakharovich

For public inquiries please write to: Telecommunications Equipment, Engineering and Licensing Division - Telephone: +972-3-5198145

Integrated Licensing - Ms. Ruth Cohen

For public inquiries please write to: Manager of Integrated Licensing, Engineering and Licensing division - Telephone: +972-3-5198216

Spectrum Management Division - Mr. Moshe Galili

Managing spectrum in Israel and granting broadcasting licenses including planning, allocation, licensing, supervising and monitoring -Telephone: +972-3-5198281

Wireless Equipment Licensing Department - Mr. Alon Bar-Sela - Telephone: +972-3-5198277

Telecommunications & Post Supervision and Control Division - Mr. Haim Habib

Safeguards and supports licensees license terms, ensuring fair competition and a high quality of service - Telephone: +972-3-5198214

Supervision of Consumer Services offered by Telecommunications Operators - Mr. Zeev Keidar

Supervises quality of services offered to the public by the licensees- Bezeq, Bezeq International, Golden Lines, Barak, Pelephone, Cellcom, and Partner. Telephone: +972-3-5198231.

Posts Supervision - Mr. Igal Levy

Supervises the quality of services offered by the Postal Authority - Telephone: +972-3-5198115

Legal Division - Adv. Yizhar Tal

Legal advice and representation of the Ministry in litigations and other legal matters - Telephone: +972-2-6706333

Economics & Planning Division - Mr. Alex Weissman

Deals with economic related issues pertaining to the Ministry, handles the office budget - Telephone: +972-2-7606340

External Affairs Division - Ms. Naama Henig

Responsible for establishing, developing, and strengthening telecommunications ties with different countries, administrations, regulatory bodies, international organizations, foreign and global telecommunications companies. The department also serves as a link with the Ministry of Foreign Affairs, Israeli Embassies around the world, and Foreign Embassies in Israel - Telephone: +972-3-5198215

Council for Cable and Satellite Broadcasting - Adv. Zvika Hauser

Sets quality standards for types of broadcasting, ensures community targeted programs, and encourages original productions - Telephone: +972-2-6702210 +972-3-5198122

Cable Television Service Division - Mr. Zeev Raz

Supervises the activities of the licensees for cable television, ensuring their adherence to regulations and license terms - Telephone: +972-2-6702210

The Broadcasting Regulatory Administration - Adv. Zvika Hauser

Implements the Minister of Communications recommendations to the government, as formulated in the Peled Report, concerning the expansion and reorganization of broadcasting choice. The office acts as a promoter, planner and organizer in the areas of primary and secondary legislature, and prepares the groundwork for tenders and licenses. It also functions as an Inter-Ministerial coordinator, led by an Inter-Ministerial steering committee where relevant government offices are represented. This administration is responsible to the Minister of Communications in accordance with Government Decision No. 2444 dated August 10, 1997. Telephone: +972-2-6702210 +972-3-5198122

Office of the Chief Scientist - Mr. Rafi Hoyda

Monitors innovative telecommunication technologies; promotes R&D programs and cooperative initiatives in the area of Telecommunications. Represent the Ministry in standardization bodies and international conventions agreements - Telephone: +972-3-5198251

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2.2 National Regulatory Authorities

The main national regulatory authority in the area of telecommunications is the Ministry of Communications. Additionally in the area of Broadcasting there are two Authorities: the Israel Broadcasting Authority (in the Prime Minister’s Office); the Second Authority for Television and Radio (in the Ministry of Education);

The Israel Broadcasting Authority

Established by the Broadcasting Authority Law of 1965 it has both operational as well regulatory tasks. It operates two television channels, one terrestrial, the First Channel and another by satellite and broadcast only for cable subscribers (Channel 3 or in Channel 33 in the Cables). It operates several radio stations under the name of Kol Yisrael: the A, B, C, D and E (short waves) networks; a foreign languages radio (Immigrants Absorption); a road security channel in the north part of the country (The Gal Batuach); a road and business channel in the central part of the country (Kol HaDerech LeAssakim).

The budget for the IBA comes from the TV duty paid by TV sets owners; income from services broadcasts and sponsorships; the radio and the car radio duty; direct subsidies from the Finance Ministry for the direct broadcast through Channel 3 of the Parliament deliberations.

The bodies in charge of overseeing and supervising the IBA are:

The Plenary of the Broadcasting Authority: composed by 31 members. They are nominated by the President of the country - 30 of them indicated by the government and 1 by the Jewish Agency. They are nominated for a mandate of three years.

The Executive Board composed by 7 members of the plenary nominated by the government. The chairman and vice chairman are nominated by the government. The Executive Board has executive authority as the law states in item 19 "To discuss and decide on matters of concern of the Authority".

The Minister in charge of the executing the law is now the Prime Minister. In the past this task has "migrated" between the Minister of Education and Culture and other Ministers nominated by the Prime Minister to carry out this task.

The Second Authority for Television and Radio

An statutory body established by the Law of the of the Second Authority for Television and Radio from 1990. It is in charge of commercial broadcasts (Television and Radio) financed by income from the broadcast of commercial advertising.

The Second Authority is in charge of the Second Channeof TV. It started broadcast in November 1993. Its broadcasting hours through the 7 week days were divided equally among 3 licensees which are three different commercial consortia occupying 84% of the broadcast time. The Educational TV received a franchise for 14.3% of the broadcast time at the Second Channel. The News Broadcasts at the Second Channel are not directly broadcasted by the franchise operators but by an autonomous body, the "News Company" which has the standing of an independent franchise. The budget of the "News Company" is covered by the three commercial franchise holders (Establishment, Acquisition and Maintenance) and by the Second Authority which is supposed to cover the current expenses of the News Company from the income it receives from the license holders.

The Regional Radio

Radio commercial broadcasts are regulated by the Law of the Second Authority for Television and Radio. It provided in 1995 franchises for 13 regional radio stations that broadcast in pre defined geographical areas. The content of their broadcast is not different from the national radio channels except for some programs that are supposed to deal with local issues. They are financed by broadcasting commercial advertisement. In contrast to the Second Channel that is the only one authorized to broadcast advertisement, the regional radio stations are in competition with the National Radio Channels which broadcast commercial advertisement already for many years.

The regulatory functions for the Second Channel and the Regional Radio Stations is exercised by the Second Authority for Television and Radio.

The Second Authority is subordinated to a Public Council ("The Authority's Council"). The Council is composed by 15 members including the chairman; they are nominated by the government for a mandate of four years. The Director General is nominated by the Council following the recommendation of the Minister and authorized by the government for a period of five years

The Minister in charge of the Second Authority for Television and Radio is the Minister of Education Culture and Sports. With the establishment of the new government in June 1999 it will be transferred to the Ministry of Communications.

The Educational Television and the IDF Radio Station

The Educational Television is directly subordinated to the Ministry of Education Culture and Sports and is not regulated by an statutory body.

The IDF Radio Station subordinated to the Ministry of Defense and its civil broadcasts should be supervised by the IBA as determined by item 48 of the IBA Law.

Cable Television

There are three companies with franchises for Cable TV broadcasts in Israel. The penetration rate is very high reaching more than 70% of the households in the areas covered (which cover 90% of the households in the country).

The Council for Cable Television at the Ministry of Communications is the regulatory body for Cable Television in Israel. The Council serves also as the tender committee for the allocation of licenses. The licenses themselves are provided by the Minister of Communications who has the authority to issue the regulations.

The Council determines the rules concerning the services to be provided through the the cable system. The technological area of establishing and running the cable network is supervised by the Director of the Service of Cable Television and Subscribers who is head of Division at the Ministry of Communications.

The Minister in charge of Cable Television is the Minister of Communications.

2.3 Frequencies allocation authorities

Ministry of Communications, Spectrum Management Division - Mr. Moshe Galili

Managing spectrum in Israel and granting broadcasting licenses including planning, allocation, licensing, supervising and monitoring. Telephone: +972-3-5198281

2.4 Office for the protection of economic competition

The Anti Trust Authority in Israel was established to protect the competition in the Israeli economy through the enforcement of the Anti Trust Law of 1988 in cooperation with the Anti Trust Court of Law and the Tribunals System. All the units of the Authority, legal, economic, investigative work in coordination to achieve the above goal. The specific tasks are: (a) Supervision over monopolies to limit their market power; (b) Supervision of mergers to avoid the establishment of monopolies or monopoly centers of power; (c) Supervision over limiting arrangements to avoid arrangements that contravene competition.

The Legal Department start legal proceedings against those who infringe the Anti Trust Law; announcing monopoly owners, legal consultancy, provide exemptions. The Economic Department provide economic analysis on matters concerning cases being dealt by the Authority. The Investigation Department investigate suspicion of contravention of the Anti Trust Law and to establish evidence in cases being dealt by the Authority.

The target populations of the Authority are: (a) Companies, business and directors suspect of contravening the Anti Trust Law; (b) Monopolies; (c) Companies wishing to merge and asking for authorization; (c) Companies asking for exemption for establishing limiting arrangements.

The Authority is managed by the Anti Trust supervisor, Dr David Tadmor, +972.2.6556111

2.5 Consultative Councils

The regulatory bodies described in item 2.2 above serve as consultative councils for telecommunications policy. In addition, almost all the Committees that have been established in recent years for policy planning and implementation have asked for comments and recommendations from the public. These public policy committees have invited in many cases those providing thoughtful comments to appear frontally in the committee.

2.6 Public Telecommunications operators

The following is the ownership composition in the Israeli telecommunications market:

Historical Operator - Bezeq: Government of Israel - 54%; Cable & Wireless - 13%; the remaining shares are publicly held.

Cellular operators: Pelephone (Bezeq - 50%, Motorola - 50%); Cellcom (BellSouth -34%; Safra Brothers - 34%; PEC - 12.5%; Discount Investments - 12.5%; Private investors - 7.0%); Partner/Orange (Hutchinson - 46.5%; Matab - 20.31%; Elbit - 16.5%; Tapuz - 16.5%).

International long distance: Bezeq International (Bezeq - 100%); Golden Lines (STET; SouthWestern Bell; Aureq; Globscom; Meitar/Kahn); Barak (Sprint; Deutsche Telekom; France Telecom; Clacom; Matab).

Cable TV: Aruzei Zahav (Aureq - 70%; Yediot Aharonot - 30%); Matab (Denkner - 37%; Maariv - 13.3%; Mosat-Gosinski - 10%; Hanania Gibstein - 6.2%; Shimeon & Ali Hefetz - 5.1%); Tevel (I.D.B - 48.5%; UPC - 23.3%; TCI - 23.3%).

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