The current debate within the Palestinian ICT community is on the initiative of the Palestine Telecommunication Co. Paltel (the sole license holder) to allow users access to the Internet without subscription fees. Instead, Paltel proposes that the charges be made through telephone calls and billed through telephone bills. This model was introduced in a few countries with mixed results. Many have argued that this model had little impact on increasing Internet usage within those countries.

In Palestine, access to the Internet started as early as the mid 80s. As a matter of fact, Palestine, and in particular Birzeit University, was the first in the region to connect to the Internet. A few Birzeit University academics used to connect several times a day to a server in the US, using international telephone lines, and distribute e-mail messages to users via the university’s local network. Later on, the United Nations Development Programme (UNDP) installed the first Internet node in the Palestinian territories and connected several institutions to the Internet. Birzeit University was connected through the available telephone lines and wireless connection. At that time it was hard to obtain fixed-line connections within the Israeli-occupied territories.

Baraka was established in 1992-93 as a non-profit Internet Service Provider (ISP) to connect NGOs and individuals who are active in civil society. The line was supplied from UNDP’s node. 1994 saw the establishment of the first privately owned commercial Palestinian ISP. Many Palestinians connected through this dial-up service. The establishment of Paltel in 1996 as a privately owned telecommunication company resulted in a substantial increase in the number of fixed telephone lines: from 12,000 lines in Gaza and the West Bank to over 300,000 lines at present. Institutions and businesses are able to rent more developed services such as ISDN and leased lines.

The number of Internet users has continued to grow since then. This number is currently estimated at 8-10% of the Palestinian population. Although this is still the highest in the region, after Israel and the Gulf region, Jordan and Egypt are catching up very fast. Palestinians were leading in Internet usage and connection to utilize its benefits. They now feel that they are left behind; they have no access to high speed Internet technology due to imposed Israeli restrictions, in addition to other self-imposed impediments that have created a fierce debate among the ICT players in Palestine.

Paltel proposed the Subscription Free Internet (SFI) model as an attempt to increase the number of users. The private sector, led by PITA, and the users’ community which is represented by the Internet Society, Palestine Chapter, have both opposed this model, accusing Paltel of trying to consolidate its monopoly by driving current ISPs out of the market and limiting competition. The two sides entered into negotiations to modify the model. Paltel has agreed to save the investments made by the ISPs by making a commitment not to enter the Internet end-user market.

Many still doubt if the current proposal will create an impact on the user community and advance the ICT market in a meaningful way. They argue that Paltel’s model is based on the old technology of dial-up access, and new broadband high-speed access based on digital services such as ADSL and DSL technologies is ignored or not addressed. The initiative also does not address other Internet access impediments such as ownership of cheap telephone lines, wireless technology and PCs.

Paltel maintains that it is unfairly competing with violators who access the Internet illegally through wireless connections from Israel, bypassing Paltel’s network. In the absence of implementation of laws and law enforcement, this has resulted in substantial financial losses to Paltel and to the Palestinians’ tax coffers.

The crux of the matter is that access to the Internet is vital to many Palestinians who are imprisoned in their cities, towns and villages. The Internet serves as an important communication tool within the Palestinian communities and with the outside world. Palestinians need reliable, good quality high-speed Internet service at a competitive price. The absence of clear government ICT policies and an independent regulator for the telecommunication sector have led many to think that catching up with the advancing ICT world is another distant Palestinian dream.

Dr. Mashhour Abudaka is the Executive Director of Palestine IT Association (PITA)