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February 2002 1. Preamble This initiative between PalTel and PITA is meant to enhance the synergies required for developing the Internet services and penetration in Palestine. The initiative is based on the regulatory environment as provided by the Ministry of Post and Telecommunications or any other official body or entity that is dealing with the telecommunication sector . In addition, national ambitions of accelerating the universal penetration of the Internet to 10% of the population in one year are heeded. PalTel and PITA shall prepare marketing strategies to alleviate penetration obstacles such as availability of relevant goods and service such as home PC’s, modems and telephone service. In addition, both sides shall engage in efforts to promote public awareness to the importance of the Internet and the new dimensions it brings to the general development of the community. 2. Definitions The following terms used within the text of this initiative are agreed to have the meanings provided.
2.1.
Internet Service Provider (ISP):
A company that provides Internet services utilizing
infrastructure from a duly Palestinian licensed operator
by the Palestinian Ministry of Post and
Telecommunication (“MoPT”). By establishing
points-of-presence (POPs) containing remote access
servers and additional devices, as well as a suite of
user software packages. All ISPs are to be licensed by
the Palestinian MoPT. 2.2. End User (EU) : A subscriber of a licensed ISPwho uses the Internet for personal and/or corporate use through own premises whether networked or not. For the purposes of this document, commercial Internet Café businesses are also included under this definition.
2.3. PalTel Infrastructure Services: As duly licensed by the MoPT, PalTel is exclusively entitled to provide the ISPs with the following services: 2.3.1. Leased Lines (TDM, FR, ATM) 2.3.2. Dial-up (POTS, E1) 2.3.3. Backbone Connectivity 3. Framework In the spirit of promoting fair competition and the belief that such spirit, will enhance the business environment required for advancing the goals of this initiative the two parties agree to implement, advocate and promote, as necessary, the following measures: 3.1. PalTel has voluntarily refrained from entering the Internet Service Provision business to the end users in Palestine although it is fully licensed and entitled for such services and that nothing contained herein prevents PalTel from providing such services in the future. Alternatively, PalTel shall concentrate on providing all infrastructure and backbone services, which the ISPs require to provide optimal services to their end users. PalTel would strive to provide all services in a fashion that is compatible with the most recent technological advances and in accordance with the highest standards of quality. 3.2. All current and future ISPs will refrain from employing any services whether infrastructure, backbone or access from any telecommunication service provider except those duly licensed by the Palestinian Ministry of Post and Telecommunications. (Currently PalTel only). 3.3. PalTel shall work on providing a basket of services to all ISPs on equal footing. The tariff structure for all services shall be designed to reflect an understanding of the importance of low tariffs for the advancement of the industry, in order to accomplish the social commitments, which both sides embrace upon themselves. Furthermore, given that lower tariff structures are not the only factors affecting the said goals, both parties will engage in marketing efforts to augment such considerations with practical steps as described in section 4 below as such this paragraph is to be read in conjunction with section 4. 3.4. For eliminating possible market-entry-barriers, PalTel shall provide all services to all ISPs unbundled and without volume discounts. 3.5. PalTel shall enter into clear service level agreement(s) (“SLA”) with all ISPs. The SLAs are expected to address the following: 3.5.1. Technical support for 24 hours a day, 7 days a week for all core services at relevant facilities. 3.5.2. Full redundancy for all critical network segments 3.5.3. Qualified support personnel 3.5.4. Service availability time of 99%. 3.6. The ISPs should not compete with any of PalTel services which includes but not limited to VoIP. 3.7. In addition, It is expected that all ISP’s will maximize all of the benefits that emerge from this initiative to benefit the end-users. 4. Follow-up and Monitoring Mechanism A permanent committee consisting of 6 members, 3 from each party, will be established and shall continuously follow up on the implementation of this initiative, monitor its proper execution and sense its outcomes. Both parties shall coordinate and work jointly and effectively to deal with any violation to the principals outlined in this memorandum. The committee shall provide feedback and recommendations to the parties to improve the measures taken to achieve the common goals of this initiative.
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