Israel

Newly established Ofek Communications has invited bids to set up a domestic wireless communications network. The tender comes ahead of plans to open the basic telephone infrastructure market to competition.

Ofek spokeswoman Noga Barak says four international companies have been invited to submit bids by 30 May for the turnkey project. They are Cisco and Lucent Technologies, both of the US, Alcatel of France and Nortel of Canada. The contract is expected to be awarded by the end of July.

The winner will be responsible for setting up and operating the network, which will use local multipoint distribution service (LMDS) technology and will provide telephony, data transmission and Internet services. It will compete with the asymmetric digital subscriber line (ADSL) network of state-controlled Bezeq Israel Telecom when the government opens the telephone infrastructure market to competition. Industry sources expect the Communications Ministry to start issuing licences in the autumn.

Ofek, owned by Eurocom21, has invested an initial $20 million in preparing for the setting up the network. Details about the project's total cost and financing have not been disclosed. 'We are considering a number of creative financial solutions,' says Barak.