Jerusalem court issues injunction against award of 3G licence to Golan Telecom

15 Aug 2011

A temporary injunction has been issued against the award of an Israeli 3G concession to Golan Telecom until an appeal by the original winner of the licence, Marathon Telecom is heard, Globes Online reports. It is understood that the Jerusalem District Court issued the injunction amid claims that the tenders committee had not properly discussed Golan’s bid or its significance, and commenting on the development Judge Noam Sohlberg noted: ‘The tenders committee explained why it disqualified Select Communications and why Marathon Telecom should not be declared the winner, but it did not explain why Golan Telecom should be declared the winner, except for the fact that Golan Telecom offered the next valid bid after Select in the auction. This is insufficient, even based on the tender committee’s decision to cancel the winner’s win in the tender since the next winner is not automatic, and still requires examination, discussion, decision, and reasoning.’

As previously reported by CommsUpdate, Golan grabbed the disputed concession in July 2011, after Select Communications had been disqualified from the tender for two 3G licences held by the Israeli Ministry of Telecommunications (MoC) in April 2011, for failing to provide a bank guarantee from a local financial institution. MIRS Communications and Marathon Investments initially won the two available concessions, bidding 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. Marathon subsequently appealed the issuing of the licence to Golan on the grounds that it should have been given a second chance following Select’s disqualification.

Israel, Golan Telecom, Marathon Investments, Ministry of Communications