Golan grabs 3G licence as Select is disqualified

19 Jul 2011

On the back of confirmation that Select Communications has been disqualified from a tender for 3G licences by the Israeli Ministry of Telecommunications (MoC) for failing to provide a bank guarantee from a local financial institution, Golan Telecom has instead been handed the open concession. According to Globes Online, the licence fell to Golan as it was the fourth highest bidder in the auction which took place in April 2011. MIRS Communications and Marathon Investments initially won the two available concessions, paying ILS705 million (USD206 million) and ILS710 million respectively, but the latter of the two failed to secure financing, meaning third-placed bidder Select was next in line for the licence. With Select also falling foul of financial matters – it had been required to present an ILS700 million guarantee from an Israeli bank, but instead obtained the guarantee from Goldman Sachs Group – Golan will now have to present a guarantee for almost half of that figure, ILS360 million.

Israel, Golan Telecom, Ministry of Communications, Select Communications