Supplementary immediate report - Pelephone wins frequencies in the 26-GHz tender
Bezeq - The Israel Telecommunications Corp. Ltd.
(the “Company”)
July 17, 2023
Attn. Attn.
Israel Securities Authority Tel Aviv Stock Exchange Ltd.
Supplementary immediate report - Pelephone wins frequencies in the 26-GHz tender
Further to the Company's immediate report dated August 15, 2022 and the supplementary immediate report dated December 8, 2022, and as set out in section 3.8.2.4 of the chapter Description of the Company’s Business in the Company’s Periodic Report for 2022, regarding the ongoing tender for 5G 26-GHz frequency bands (the “Tender”), a supplementary report is hereby issued whereby on July 17, 2023, the Company received notification from the subsidiary Pelephone Communications Ltd. ("Pelephone"), according to which Pelephone was informed by the Tender Committee that it had won a series of frequencies in this area, further to its participation in the tender, as follows:
- 800 MHz in the 26-GHz frequency band (for 10 years), without any change to the license period as a cellular operator as a result of the Tender, and may be renewed in accordance with the provisions of the license (“Allocation of the Frequencies").
- Payment for frequencies of NIS 4.16 million - the payment date is scheduled for 60 working days after receiving notification of the Tender results from the Tender Committee.
Expansion of the license under the results of the tender is subject to the approval of the Minister of Communications as set out in the Tender terms.
Allocation of the Frequencies will allow Pelephone, among other things, to expand the range of advanced uses on the 5G cellular network, with emphasis on private networks, and advanced services that require a particularly high broadband speed, such as hospitals.
The cost of integrating this frequency range into 5G technology will be ongoing, and is not expected to be substantial.
In addition, further to the immediate report dated August 15, 2022, and following the hearing held on the subject, yesterday the Ministry published a policy document outlining the rules for allocation of a 26-GHz frequency band (and 2100 MHz narrowband) for use by entities other than cellular operators or domestic carriers, for the operation of local private networks (polygon area) per project. Implementation of the policy will require relevant regulatory adjustments and is not expected to have a significant effect on the Company's business.
Yours sincerely,
“Bezeq” The Israel Telecommunication Corp Limited
The above information constitutes a translation of the Immediate Report published by the Company. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law, and represents the binding version and the only one having legal effect. This translation was prepared for convenience purposes only.