Mr. Sabih Masri, chairman of the Board of Directors at Paltel, announced that Paltel’s net profit for the past year is JD 38 million, increased by JD 11 million compared to last year. Masri added that Paltel intends to distribute cash dividend of 20% of paid-up capital as well as stock dividend of 50% of capital (1 share for every 2 shares). Masri noted in his speech delivered in front of the Combined Ordinary and Extraordinary General Meeting that Company’s capital is estimated at JD 100 million. Masri added that Paltel invests in a range of sectors in addition to the telecommunication one. Paltel is committed to provide all Palestinian localities with telecommunication services.

Paltel Announces Cost Reduction on internet and telephone services

Dr. Sabri Saidam, Minister of ICT in the Palestinian National Authority gives opening speech whereby he noted the achievements of Paltel and its insistence to work despite challenges and difficulties faced over the Intifada years. Minister asked Paltel to reduce tariff on internet and telephone services. He added that the Ministry is interested in applying the e-Government system and securing internet mobile units. He added that the Jordanian Telecommunication company is ready to provide its services to remote area in Palestine.
 Dr. Abdul Malik Jaber, CEO of Paltel, mentioned that the cost of the telephone calls is much lower compared to 2003. Jaber added that Palestine Telecommunication is studying the idea of listing part of its shares on the Abu Dhabi Securities Market however nothing is done up until now. 

Competitive Capacity for Jawwal

Hakam Kanafani, the CEO of Jawwal stated competitive capacity for Jawwal ranks it as the most competitive Arab market by choice, ranking second after Kuwait. Jawwal MTC costs are lower than those of the Israeli companies working in the same field. Decrease is due to the following factors: low operation costs, increased number of subscribers to service that is expected to hit 850,000. Emad Falooji, Former Minister for Telecommunication and Information Technology thanked Paltel for their transparency and ambitious projects. He asked Paltel to dedicate part of its profit to support the charitable organizations in the most affected areas of Gaza Strip. 

Net profit of Paltel of JD 95 million 

Mr. Masri and in his brief on the administrative report mentioned that among the projects Paltel implemented is the Subscription Free Internet model that increased market size and value. Number of subscribers increased from 246,000 to 290,000 during last year. Net profit of Palestine Telecommunication Company since its establishment is JD 95 million of which Paltel invested US$ 1.6 million in community support.

Report also included information and indicators on the operational costs and revenues, also comparing last and current year costs, revenues, spending and services in addition to shareholders’ rights.

Paltel Group Social Responsibility Program

During the Press Conference held at the Grand Park hotel in Ramallah and hosted ordinary and extraordinary general committee meeting, Minister Sabri Saidam announced launching the first group of the Social Responsibility projects of US$ 600,000. Listed projects include: School District building in Rafah project to cost US$ 115; Internet Café establishment to cost US$ 100,000 for the less privileged groups in Gaza Strip; financing the purchase of 200 PCs in Hebron; establishing two Public Gardens in the City of Jineen. Total cost of projects is US$ 70,000. In addition, 200 university scholarships will be awarded amounting to US$ 60,000; Bee-hives project to cost US$ 45,000. Saidam explained that projects include establishing a female student’s hostel in Ramallah and supporting summer camps to cost US$ 30,000; purchasing Equipment for Processing Blood Donor Samples in Balata Camp to cost US$ 10,000. Saidam hoped that the ten listed projects would have positive influence on the Palestinian Community.

The National Telecommunication Conservatory of Music

Serious discussions are in place to establish the National Telecommunication Conservatory of Music. Saidam added that the position of Palestine Telecommunication Company to support this Conservatory is appreciated. The Conservatory will constitute a training opportunity for the Palestinian Musical Cadre. Saidam denounced the Israeli violations of the Palestinian Telecommunication sector and said that these violations badly affect the Palestinian Community. 

Procedures to Stop Violations

Saidam mentioned that he discussed the Israeli violations for the Palestinian Telecommunication sector with Major General Naser Yousef, Minister of Interior and National Security. General Yousef considered these violations as part of an Israeli comprehensive plan to destroy the Palestinian Economy. He disclosed that a meeting will take place, with his counter part Dalia Eitzek, on the fifth of the coming month in TelAviv to discuss these violations and the Frequency Spectrum Management issue. He added that this meeting is a consequence of a previous meeting held earlier in Ireland. Saidam added that provision of Jawwal Internet (internet services through SMS) is currently under discussion. Services will be approved once procedures are followed and will be directly serving the Palestinian Territory.

Masri: We seek to attract Foreign Investments 

Sabih Masri, chairman of Paltel, expressed his happiness with the launch of the first group of projects at Paltel. He wished that the coming group will include more projects. Masri added: “Palestine Telecommunication Company is committed to development despite the Israeli regulations. Paltel aims at attracting Foreign Investments into West Bank and Gaza. He discussed the Israel''s unilateral withdrawal Plan. He noted that PADICO and Paltel are ready to help officials in Gaza develop a healthy investment environment. He added: “we have clear orders to proceed with investment projects in every telecommunication aspects. Paltel is ready and purchased equipment for this purpose. However we still wait for Israel to release part of these withhold equipment. He added that the issue of monopoly is not to be discussed. A 10-year exclusive license period was officially granted by the Palestinian Authority for Paltel.

The Kuwaiti Mobile Company (MTC) proposal to buy 60% of JAWWAL

He also discussed the offer of the Kuwaiti Mobile Company (MTC) proposal to buy 60% of Jawwal assuring the attendees that no agreement is reached yet: “All negotiations are stopped because we have greater aims to achieve. Our vision has changed and is stemmed from the new facts on ground”. Why sell at low cost prices? He also expressed his delight-ness for the fact that Paltel managed to achieve a lot. Buying Palestinian Authority shares in Jawwal at US$ 43 million despite that Palestinian Authority estimates did not exceed US$ 37 million is a great success.

WASSEL initial public offering of shares

Masri discussed the issue of the initial public offering of the new logistics service provider, WASEL at US$ 5 million capital rather than at US$ 3.5 as previously announced.

NIS 225 compensations for PALTEL 

Dr. Jaber discussed the recent decision of the Court of First Instance against Pelephone Communications Ltd and Israel Cellcom Ltd Israeli Mobile companies. Both Israeli companies will pay NIS 521.6 million to PALTEL. Palestinian Telecommunications Company Ltd (PALTEL) was suing Israel''s top two mobile phone providers for allegedly operating illegally in Palestinian-ruled areas. The court decision is difficult to apply; however, we will continue our efforts and legal procedures and carry the decision to high levels of decision making. He added that Paltel has bought the ADSL equipment 6 years ago. Equipment was damaged due to the fact that they were not released for a long period of time at Israeli ports. 

Lack of a direct International Connection Channel

The Palestinian Territory does not have means to connect directly to the international community. All calls should pass through Israel, this increase the cost for phone calls. Jaber added, despite all this Palestine Telecommunication Company is committed to providing high quality services while facing the Israeli violations.

Kanafani said: “Paltel and Jawwal managed to achieve a lot in the telecommunication market. The Palestine telecommunication services are considered highly competitive at the regional level. He added that the Palestinian situation is unique as we are to continue to face the Israeli violations and obstacles. He also said that Jawwal will be first cellular company to provide speed Internet access services in the region. He added: “We have around 500,000 subscribers and we wish to increase the number to 700,000 by the end of the year”.