World Bank: Palestinian telecoms sector revenues plunge

The Palestinian mobile phone industry lost more than $1 billion (885 million euros) in revenues in the past three years, the World Bank estimated Thursday, citing Israeli restrictions as a leading cause.

Israel limits imports of equipment by Palestinian telecoms companies, while they are unable to operate in the parts of the occupied West Bank under direct Israeli control, a World Bank report said.

As such, more than 20 percent of customers in the West Bank use Israeli providers instead.

"The sector was hindered by years of delay in mobile broadband, presence of unauthorised Israeli operators in the Palestinian market, restrictions on importing equipment, and absence of an independent regulator," said the report, entitled "Missed Opportunity for Economic Development". 

Israel and the Palestinian leadership signed a deal late last year to allow 3G Internet.

"However, the Palestinian operators remain at a competitive disadvantage because Israeli operators have 3G and 4G capabilities and are able to attract higher value customers," the bank said. 

It called for Israel to ease restrictions to allow the telecoms sector to grow.

"The Palestinian telecom sector has the potential to boost the economy and create job opportunities," Steen Lau Jorgensen, World Bank country director for West Bank and Gaza, wrote in the report.

"In order for that to happen, Palestinian operators should be able to access similar resources as their neighbours."

Source: AFP