Palestinians in the West Bank are finally getting high-speed mobile data services, after a years-long Israeli ban that cost their fragile economy hundreds of millions of dollars, impeded tech start-ups and denied them simple conveniences enjoyed by the rest of the world.
Palestinian cell phone providers Wataniya and Jawwal are expected to launch 3G broadband services in the West Bank by the end of this month, Palestinian officials said, after Israel assigned frequencies and allowed the import of equipment.
“It’s about time,” Wataniya CEO Durgham Maraee said of the anticipated launch, speaking to The Associated Press at company headquarters in the West Bank last week. “It has taken a very, very long time.” The belated move to 3G comes a decade after Palestinian operators first sought Israeli permits and at a time when faster 4G is increasingly available in the Middle East.
This keeps Palestinian mobile companies at a continued disadvantage, including in competition with Israeli companies that offer 3G and 4G coverage to Palestinian customers in the West Bank through towers installed in Israeli settlements. The World Bank has criticized this state of affairs because the Israeli firms do not pay license fees or taxes to the Palestinian authorities.
The Israeli ban on 3G also remains in place in the Gaza Strip, making that Palestinian territory, dominated by the militant group Hamas, one of the last without such services across the globe. Mobile internet is available in far-flung places, from the Himalayan kingdom of Bhutan to the Atlantic’s volcanic rock island of Ascension.
In blocking 3G for years, Israel has cited security concerns, without going into details. Officials suggest, for example, that high-speed mobile data could make it easier for Palestinian militants to communicate while reducing the risk of Israeli surveillance. Israel’s Shin Bet security agency declined comment Sunday.
COGAT, an Israeli Defense Ministry branch, said it worked on implementing a 2015 memorandum of understanding with the Palestinians on 3G, and that it expects a launch in two to three weeks. Officials did not respond to questions about Israel’s years-long ban on 3G.
Israel has delayed approval for Palestinian economic development projects in the past, leading to efforts by high-level international efforts to try to speed things along. Most recently, President Donald Trump’s Mideast team has urged Israel to make economic gestures to the Palestinians. Palestinian officials have said they suspect such projects are being used as political leverage.
At the same time, Israeli Prime Minister Benjamin Netanyahu has called for so-called “economic peace” with the Palestinians, as he stepped back from offers by predecessors to negotiate the terms of an independent Palestinian state on lands Israel captured in 1967.
At Wataniya headquarters, where employees got 3G as part of pre-launch tests, the mood was upbeat. The CEO said the 3G launch and the company’s recent expansion into Gaza, after Israel lifted restrictions on importing equipment, could translate into profits in 2018 - the first since Wataniya began operations in 2009 as the second Palestinian cellphone provider.
“The future is bright,” Maraee said. But the company’s struggles also illustrate the difficulties faced by Palestinian entrepreneurs, large and small, as they operate under Israeli obstacles to trade, movement and access. Israel has kept a tight grip on the daily lives of Palestinians since its 1967 capture of the West Bank, Gaza and east Jerusalem, areas sought for a Palestinian state.
It annexed east Jerusalem and retains overall control of the West Bank. The Palestinian Authority, a self-rule government, administers 38 percent of the West Bank, while the remaining area, home to 400,000 Israeli settlers, is largely off-limits to Palestinian economic development.
Israel withdrew from Gaza in 2005, but has enforced a border blockade, along with Egypt, since Hamas seized the strip in 2007. The West Bank-based Palestinian Authority of President Mahmoud Abbas is trying to regain a foothold in Gaza in stop-and-go reconciliation talks with Hamas.
The World Bank has repeatedly urged Israel to unshackle the Palestinian economy to allow private sector growth, essential for lowering double-digit Palestinian unemployment. In 2016, the bank said the Palestinian mobile phone sector lost more than $1 billion in potential earnings over the previous three years, largely due to Israeli restrictions.
It noted that Israeli providers siphoned off as much as 30 percent of the potential Palestinian customer base in the West Bank with offers of 3G and 4G services. Maraee said Wataniya has stayed afloat in part because of the continued support of its main investors - the Qatar-based telecommunications company Ooredoo and the self-rule government’s Palestinian Investment Fund.
Wataniya is now at the break-even point, but that it once suffered losses of as much as $20 million a year, he said. “If it wasn’t for the commitment of the PIF and the Ooredoo Group ... to the Palestinian economy, probably Wataniya would not have survived under these trying circumstances,” he said. Smaller Palestinian entrepreneurs also expect an immediate 3G bump in business.
Ali Taha launched Rocab, an online taxi booking service, last July, but has so far captured only a tiny slice of the market. He expects a significant increase with 3G, since customers would be able to summon a ride from anywhere, instead of having to search for a location with WiFi. Shadi Atshan, founder of the Palestinian start-up accelerator FastForward, said he expects app development to flourish and generate more Palestinian tech jobs.
For ordinary Palestinians, everyday life will get just a little easier. Alaa Amouri, 20, a student, said she gets 4G from an Israeli provider that offers only partial coverage in the West Bank. Mobile data from a Palestinian provider would offer real-time updates on potential trouble on the roads, said Amouri, who commutes between east Jerusalem and her West Bank university, passing through the crowded Israeli-run Qalandiya crossing almost daily.
“It (3G) helps in getting news updates,” she said. “Sometimes when we are at the Qalandiya crossing, we find it blocked without knowing why.”
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