Exhibit 4.(a).2

Translation from Hebrew

The Binding version is the Hebrew version

State of Israel

Ministry of Communications

General License

For Partner Communications Company Ltd.

For the Provision of Mobile Radio Telephone Services

Using the Cellular Method (MRT) in Israel

Jerusalem

April 7, 1998

Integrated Version – last updated March 12, 2017

State of Israel

Ministry of Communications

General License

For Partner Communications Company Ltd.

Award of The License

By virtue of my authority pursuant to The Telecommunication Law, 1982, The Wireless Telegraphy Ordinance (New Version), 1972, and all my other authorities pursuant to all law, I award a License to Partner Communications Company Ltd. for the establishment of a Mobile Radio Telephone System using the cellular method, its subsistence, maintenance and operation, and for the provision of Mobile Radio Telephone services to the public in Israel through it, as set out in this License.

The License is issued for the period set out in the License and is subject to the following conditions:

Chapter A - General

Section A - Definitions and Interpretation

1. Definitions

1.1 In this License, the following words and expressions will have the meaning appended to them, unless another meaning is implicit in the text or its context.

“Type approval”	-	Approval given by the Ministry in accordance with the Law and Ordinance for a model of MRT Terminal Equipment.
“Means of Control”	-	In a corporation, each of the following: (1)          Voting rights in the corporation’s general meeting or in an equivalent body in another corporation; (2)          The right to appoint a director or managing director; (3)          The right to participate in the corporation’s profits; (4)          The right to share in the corporation’s remaining assets after payment of debts when the corporation is wound-up;
”Telecommunications”-	-	Broadcasting, transmission or reception of signs, signals, text, visual forms, voices or information through wire, wireless, an optic system or other electromagnetic systems;
1“Franchisee”	-	As defined in section 6L(1) of the Law;
"2Cellular Licensee  Infrastructure Licensee"	-	Whoever receives a license for establishment, existence and operation of a radio infrastructure for an MRT operator;
"32nd Generation"	-	A network which allows mainly the provision of voice and message services, using basic MRT technology of GSM  or CDMA and all of their updates, such as GPRS, EDGE, etc.;

¹Amendment No. 14

²Amendment No. 83

³Amendment No. 83

"43rd Generation"	-	A network, which in addition to 2nd Generation services, allows for the provision of data services at a medium pace (a few dozen megabits per second) using basic MRT technology of UMTS and CDMA2000 and all of their updates, such as HSPA, HSPA+, etc.;
"54th Generation"	-	A network, which in addition to 3rd Generation services, allows for the transfer of date at a high pace (approximately 100 megabits per seconds) using basic MRT technology in accordance with the 3GPP TS 36.104 last release standard, for supplying all of the Licensee's services under its license, such as LTE technology;
“Interested Party”	-	Whoever holds, either directly or indirectly, 5% of a specific type of Means of Control;  for the purpose of this definition, “holding”, includes holding as an agent;
“The Licensee”	-	Partner Communications Company Ltd., which was awarded this License;
“A Licensee”	-	The body to which the Minister has awarded, in accordance with the Law, a general or special License;
6"General Licensee"	-	A person who has received a general license to effect telecommunications activities and to provide telecommunications services:
7Roaming Licensee"-	-	A person who has won tender 12/2010- a combined license for the provision of cellular mobile radio telephone (MRT) services in Israel –an expansion of the existing license and the grant of a new license;
8"Broadcast Licensee"	-	as defined in the Law;
“Access Fee”	-	Payment for use of other telecommunication systems, including payment for connection, transmission and collection;

⁴Amendment No. 83

⁵Amendment No. 83

⁶Amendment No. 14

⁷Amendment No. 59

⁸Amendment No. 14

“Technical Requirements and Grade of Service”	-	Standards of availability and grade of service, standards for Telecommunication Installations and installation instructions, operation and maintenance, all in accordance with the Engineering Plan and the Annexes to this License, and as the Director will order from time to time regarding the Licensee’s services;
9"Subscriber Agreement"	-	a contract that serves as an agreement between the Licensee and a subscriber, for the provision of all or part of the Licensee's services;
“The Bid”	-	The Licensee’s bid in the Tender;
“The Bezeq Corporation”	-	Bezeq, Israel Telecommunication Corporation Ltd.
10“Bill” or"Telephone Bill"	-	A bill that the Licensee submits to a subscriber for services that it itself provided to the subscriber or for Goods that it sold or rented to the subscriber;
“The Law”	-	The 11Communications (Telecommunication and Broadcasts) Law, 5742-1982;
12“Goods”	-	As defined in section 3 of the Interpretation Law, 5741 – 1981;
13“Holding”	-	for the purposes of Means of Control, directly or indirectly, whether alone or jointly , including by way of  another, and  including by way of a trustee or agent, or by a right granted under any agreement, including an option to hold which does not arise from convertible securities, or  any other means;
14“Transfer”	-	for the purposes of Means of Control, directly or indirectly, for valuable consideration or otherwise, in perpetuity or for a fixed period, at once or in portions;

⁹Amendment No. 41

¹⁰Amendment No. 87

¹¹Amendment No. 14

¹²Amendment No. 87

¹³Amendment No. 14

¹⁴Amendment No. 14

15“Jointly with Others”	-	cooperation on a permanent basis; and the following shall be deemed to be in cooperation on a permanent basis: in respect of an individual – the individual, a person related to him, and a corporation that either of them controls;  and in respect of a corporation – the corporation, the person who controls it and a person controlled by either of them;”
“The Security Forces”	-	The Israel Defense Forces, The Israel Police, the General Security Force and the Institution of  Intelligence and Special Operations;
16“Applicant”	-	whoever asks to engage in an engagement agreement or a purchase agreement with the Licensee;
“The Index”	-	The Consumer Price Index that is published by the Central Bureau of Statistics, from time to time, or any other index which will be substituted for it;
“Cellular Radio Base”	-	A wireless installation operating on the operating frequencies of the MRT System and used for establishing radio contact between subscribers’ MRT Terminal Equipment units in its area of coverage and the MRT exchange;
“Interface”	-	The physical connection, including optic or wireless, meeting between various operational telecommunications installations;17
“Telecommunication Installation”	-	An installation or device which is primarily designated for telecommunications purposes, including Terminal Equipment;18
"194th Generation Tender"	-	Tender No. 2014/021 – a combined license for the provision of mobile radio telephony communications by way of the cellular method in Israel (MRT): expansion of an existing license or granting a new license;
20“Tender No. 1/01	-	The tender published by the Ministry on 4 Nissan 5761 (28 March 2001), including clarifications given by the Ministry during the tender, and following which this License has been amended;

¹⁵Amendment No. 14

¹⁶Amendment No. 87

¹⁷Amendment No. 14

¹⁸Amendment No. 14

¹⁹Amendment No. 83

²⁰Amendment No. 14

“The Tender”	-	Tender No. 7/97, published by the Ministry on July 15, 1997, including clarifications provided by the Ministry during the course of the Tender, following which this License has been awarded;
”The Director”	-	The Director General of the Ministry of Communications or his appointee in the matter of this License, wholly or partly;
“Subscriber”	-	Whoever has signed a subscriber agreement with the Licensee for obtaining MRT services as a terminal user.21 ;
"Business Subscriber"22	-	a Subscriber that is one of the following: a corporation, as defined in the Interpretations Law, 1981; government offices and other quasi-governmental offices; a licensed dealer except for an exempt dealer; a body that was incorporated in a law or by-law.
23“Split Business Subscriber”	-	a user of the Terminal Equipment, when his Telephone Bill is split between himself and a Business Subscriber or when he is charged for the entire Telephone Bill;
24"Non-Business Subscriber"	-	a Subscriber that is not a Business Subscriber and that is not a Split Business Subscriber;
"Dormant Subscriber"25	-	a subscriber that fulfills all of the following conditions: Has not received and not made use of MRT services for at least one year, as of 1 January 2008; Does not pay the Licensee any fixed tariffs; Does not have an agreement with the Licensee for a fixed period program.

²¹Amendment No. 41

²²Amendment No. 45

²³Amendment No. 87

²⁴Amendment No. 87

²⁵Amendment No. 46

a subscriber that fulfills all of the following conditions:

Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

Does not pay the Licensee any fixed tariffs;

Does not have an agreement with the Licensee for a fixed period program.

a subscriber that fulfills all of the following conditions:

Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

Does not pay the Licensee any fixed tariffs;

Does not have an agreement with the Licensee for a fixed period program.

a subscriber that fulfills all of the following conditions:

Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

Does not pay the Licensee any fixed tariffs;

Does not have an agreement with the Licensee for a fixed period program.

a subscriber that fulfills all of the following conditions:

Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

Does not pay the Licensee any fixed tariffs;

Does not have an agreement with the Licensee for a fixed period program.

a subscriber that fulfills all of the following conditions:

Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

Does not pay the Licensee any fixed tariffs;

Does not have an agreement with the Licensee for a fixed period program.

a subscriber that fulfills all of the following conditions:

Has not received and not made use of MRT services for at least one year, as of 1 January 2008;

Does not pay the Licensee any fixed tariffs;

Does not have an agreement with the Licensee for a fixed period program.

		a subscriber that fulfills all of the following conditions: Has not received and not made use of MRT services for at least one year, as of 1 January 2008; Does not pay the Licensee any fixed tariffs; Does not have an agreement with the Licensee for a fixed period program. a subscriber that fulfills all of the following conditions: Has not received and not made use of MRT services for at least one year, as of 1 January 2008; Does not pay the Licensee any fixed tariffs; Does not have an agreement with the Licensee for a fixed period program. a subscriber that fulfills all of the following conditions: Has not received and not made use of MRT services for at least one year, as of 1 January 2008; Does not pay the Licensee any fixed tariffs; Does not have an agreement with the Licensee for a fixed period program.
”International Communication System”	-	a telecommunications installations system , connected or intended to be connected to a Public Telecommunications Network through an International Network Termination Point (NTP), which serves or intends  to serve for the transmission of telecommunications messages between an international switch located in Israel and a Telecommunications Installation  located outside of Israel, including a satellite ground station and other Telecommunications Installations(hereinafter: “Components of the System”), and including transmission facilities between Components of the System;26
"One-time Transaction"	-	A transaction that is not a Continuous Transaction;
"Continuous Transaction"	-	An engagement agreement to purchase Licensee services continuously and ongoing, including any change to the agreement or addition to it that do not constitute a new transaction, and all whether the engagement agreement is for a set period or whether not for a set period;

²⁶Amendment No. 14

²⁷Amendment No. 14

²⁸Amendment No. 14

²⁹Amendment No. 87

³⁰Amendment No. 14

³¹Amendment No. 14

³²Amendment No. 59

³³Amendment No. 14

³⁴Amendment No. 14

³⁵Amendment No. 14

³⁶Amendment No. 64

³⁷Amendment No, 52

³⁸Amendment No. 84

³⁹Amendment No. 84

⁴⁰Amendment No. 83

“The MRT System”	-	The MRT through which the Licensee provides its services;
27“DO (Domestic Operator)”	-	a holder of a general license for the provision of wireless domestic telecommunications services;
Mobile Radio Telephone System (MRT)”	-	A wireless installation system built according to the cellular method and other installations, through which Mobile Radio Telephone Services are provided to the public, including an MRT exchange, Cellular Radio Bases and wireless or physical transmission channels which connect Cellular Radio Bases, Cellular Radio Bases and an MRT exchange, and between MRT exchanges;
“International Operator”	-	An operator which provides International Communication Services to the public in Israel in accordance with a general License awarded by the Minister;
	-
	-
	-
28“MRT Operator”	-	A holder of a general license for the provision of mobile radio telephone services;
29“MRT Operator on Another Network”	-	a Licensee for the Provision of MRT Services that involves the use of all or a portion of an MRT System of an MRT Operator and at least of the Access Network of the said MRT System;
30“Competing MRT Operator”	-	An MRT Operator that is not the Licensee;
“Domestic Operator”	-	An operator who provides communication services (infrastructure, transmission and telephony) to the public in Israel in accordance with a general license from the Minister.

²⁷Amendment No. 14

²⁸Amendment No. 14

²⁹Amendment No. 87

³⁰Amendment No. 14

“Exchange”	-	A Telecommunication Installation in which switching and transmission means are operated, which allows the establishment of contact between various Terminal Equipment units connected to it, and transmission of telecommunication messages between them, including control and monitoring installations and other installations which enable provision of various services to the Licensee’s subscribers or to the subscribers of another Licensee.
“The Ministry”	-	The Ministry of Communications;
31“Transfer Switch”	-	A Telecommunications Installation  which contains and operates switching, routing and transmission devices  which enable  the creation of a connection between various switching centers  connected thereto , and the transmission of telecommunications messages between them , including  monitoring and routing installations;
32”National Roaming" (NR)"	-	The expansion of the services of another MRT Operator (hereinafter-"another operator") to coverage areas of the Licensee through the Licensee's MRT system, as detailed in section 67E.
“Officer”	-	33a person serving  as a director, general manager, chief executive officer, deputy general manager, vice general manager, or a person acting as a replacement of one of the above in a company even under a different title  as well as any other manager directly subordinate to the general manager of the company;
“Appendices”	-	34The First Annex and the Appendices set out in the Second Annex to the License;;
NTP - (Network Termination  Point)”	-	An interface to one end of which a Public Telecommunication Network is connected, and to the other, Terminal Equipment, a private network, a mobile telephone network or another Public Telecommunications Network, as the case may be;

³¹Amendment No. 14

³²Amendment No. 59

³³Amendment No. 14

³⁴Amendment No. 14

“International NTP”	-	An interface to one end of which a Public Telecommunication Network is connected, and to the other, an International Communication Network;
“Telecommunication Activity”	-	Operation of a Telecommunication Installation, its installation, construction or its subsistence, all with the objective of telecommunication;
“The Ordinance”	-	The Wireless Telegraphy Ordinance (New Version) 1972;
Terminal Equipment”	-	Telecommunication equipment connected or designated to be connected to the Public Telecommunication Network, through an NTP or a private network, including telephones, modems, facsimile machines or private exchanges;
MRT Terminal Equipment”	-	Hand-held, mobile Terminal Equipment, or Terminal Equipment designated for permanent installation in motor vehicles or ships, designated to be connected to the MRT System by radio communication through Cellular Radio Bases.
“PTP Line  (Point to Point)”	-	A line which serves for telecommunications, both ends of which are located on an NTP which is not in a public telecommunication network, in which a call or other form of communication which initiates at one end may terminate only in the other end.
35“Interconnection”	-	a physical or logical connection between the Public Telecommunications Network of one licensee and the Public Telecommunications Network of another licensee, enabling the transfer of telecommunications messages between the subscribers of both licensees or the provision of services by one licensee to the subscribers of another licensee;
“Relative”	-	A spouse, parent, son, daughter, brother or sister and their spouses;
“The License”	-	This License and all its Appendices as well as any document or condition which has been determined in the License as constituting an integral part of the License or of its conditions;

³⁵Amendment No. 14

“the Network”	-	The Licensee’s MRT system;
“Public Telecommunication Network”	-	a system of Telecommunications Installations serving or designated  to serve as a provider  of Telecommunications Services to the entire public around the country, or at least in an area of service that includes exchanges and transmission switches, transmission equipment and an access network including an MRT system and an International Telecommunications System, and with the exception of a private network, Terminal Equipment and MRT Terminal Equipment;
“Wireline Public Telecommunications Network”	-	A public domestic telecommunications network, with the exception of an MRT system and an International Telecommunications System;
“Access Network”	-	Components of a Public Telecommunications Network used to connect a switching center  and a network termination point (NTP) using wireline infrastructure, wireless infrastructure or a combination of the two;”
“The Bezeq Corporation Network”	-	The Public Telecommunication Network which serves The Bezeq Corporation for provision of services in accordance with the general License which it was awarded, as well as other Telecommunication Services provided, in accordance with the Law, either by The Bezeq Corporation or by another body;
“Use”	-	Access to a Telecommunications Installation  of the Licensee, including to its Public Telecommunications Network or Access Network, in whole or in part, and the ability to use such ,  for the implementation of Telecommunications Activity  and to provide Telecommunications Services thereby, including the installation of a Telecommunications  Installation of another licensee on the Licensee’s telecommunications facility or premises;
“Telecommunication Service”	-	Operation of telecommunication activities for the public;

“International Communication Service”	-	Telecommunication Service provided for the public in Israel, in accordance with a License granted by the Minister, through an international communications system of an International Operator;
“Basic Telephone Service”	-	Switched or routed bi-directional transmission , including via modem, speech or speech-like telecommunications messages, such as facsimile signals;
“Telephony Service”	-	Basic Telephone Service and Accompanying Services to such service;
“36International Roaming Service”	-	An MRT Service provided overseas and in the territories under the Civil Administration of the Palestinian Council via the MRT system of a foreign MRT operator (hereinafter: a “Foreign Operator”), whereby the Subscriber pays the Licensee for the service;  and similarly – an MRT Service provided in Israel via the Licensee’s MRT system, whereby the Licensee provides a service to a Foreign Operator for the subscribers of such operator;  for this purpose, the “Palestinian Council” – as defined in  the Law for Implementation of the Interim Agreement regarding the West Bank and Gaza Strip Law (Jurisdictional Powers and Other Provisions) ( (Legislative Amendments), 5756-1998 [sic]
“Accompanying Service”	-	A service as set out in the First Annex  to the License, provided on the basis of a Basic Telephone Service, which by its nature  can only be provided  by the provider  of the basic service;
“Added Value Service”-	-	A service provided  based on a Basic Telephone Service, which by its nature  can also be granted by another licensee who is not the supplier of the basic service;  for the purposes of the services of the Licensee, such service as set out in the First Annex  of the License;
“Infrastructure Service”	-	an Interconnection or the ability of  Use  given to another licensee, a Franchisee or to a broadcast licensee;”
“Wireline Domestic Telecommunications Services”	-	Infrastructure Service, transmission, data communications and telephony services

³⁶Amendment No. 64

“The Licensee’s Services”	-	MRT Services, Telecommunications Services and other services that the Licensee is entitled to provide  to its subscribers, to other licensees, to broadcast licensees, to Franchisees and to the Security Forces  under this License;
“MRT Services”	-	Telecommunication Services provided through the MRT Terminal Equipment and through the MRT System;
Control”	-	The ability to direct the activity of a corporation, either alone or jointly with others, either directly or indirectly, including the ability that derives from the Articles of the corporation, by virtue of an agreement, either written or oral, by virtue of holding the Means of Control in the corporation or in another corporation or which derives from another source, and excluding the ability deriving solely from holding the office of director or any other office in the company; any person controlling a subsidiary company or another corporation held directly by him/her, will be deemed as controlling another corporation, controlled by the corporation which is held directly, as aforesaid; it should be presumed that an individual or corporation shall control the corporation if one of the following conditions exist: A.          If he or it holds, either directly or indirectly, fifty percent (50%) or more of any Means of Control in the corporation; B.         If he or it holds, either directly or indirectly, a percentage of any Means of Control in the corporation which is the greatest part in relation to the holdings of the other Interested Parties in the corporation. C.          If he or it has the ability to prevent taking business decisions in the corporation, with the exception of decisions in the matter of issuance of means of control in a corporation or 37decisions in the matters of sale or liquidation of most businesses of the corporation, or fundamental change of these businesses;
“The Minister”	-	The Minister of Communication, including a person to whom the Minister has delegated his authority in the matter of this License, either in whole or in part;

³⁷Amendment No, 52

“The Engineering Plan”	-	The Engineering Plan, including the Maintenance Organization and Grade of Services for the Subscribers, attached in the Appendices of the Second Annex to the License;
“Numbering Plan”	-	As defined in section 5A(b) of the Law;
"Billing Period"	-	A cyclical time period, with a set period, at the end of which a bill is presented to the subscriber for payment for the Licensee's services and for content services that were provided to the subscriber during that period.
"Radio Infrastructure"	-	Radio centers by way of the cellular method, monitoring units thereof, if any, and transmission connecting them to the core of the public telecommunications network of the Licensee.
"38Post- paid"	-	Payment for services that is collected from the subscriber after the Bill Period;
"39Pre-paid"	-	Payment for services that is collected from the subscriber before or at the beginning of the provision of the services;
40

1.2 Words and expressions in the License that are not defined in Paragraph 1.1, will be interpreted as in the Law, Ordinance and Regulations which have been enacted in accordance with them, The Law of Interpretations, 1981, or as specified in appropriate paragraphs in the License, unless a different meaning is implicit in the text or in its context.

2. Paragraph Headings

The paragraph headings in this License are provided for ease of reading only, and they must not be used for purposes of interpretation or explanation of the content of one or all of the Terms of the License.

3. The “Blue Pencil” Principle

Revocation or a decision in the matter of the nullification of a condition of this License or a part thereof will only apply to that condition or the part thereof, as the case may be, and they themselves will not prejudice the binding validity of the License or any other condition it contains.

³⁸Amendment No. 84

³⁹Amendment No. 84

⁴⁰Amendment No. 83

Section B - Legal and Administrative Provisions

4. Observation of Laws and Provisions

4.1 In all matters pertaining to the establishment of the MRT network, its subsistence, operation and maintenance and also for the provision of MRT services through it, the Licensee will act in accordance with the instructions of any law, and without derogating from the generality of the above, will strictly observe the following:

1) The instructions of the Telecommunication Law and the regulations pursuant thereto;

2) The Wireless Telegraphy Ordinance and the regulations pursuant thereto;

3) Administrative instructions;

4) International conventions to which Israel is a signatory, in the matter of telecommunications and radio;

5) Any other law or convention applicable to telecommunication and radio, even though they have become valid after the award of the License.

4.2 The Licensee will act in accordance with the laws and provisions as set out in Paragraph 4.1 according to their validity from time to time during the License Period, including the remedies for breaching them, and they will be deemed to be an integral part of the Terms of the License.

5. The Obligation of Permit according to all other Laws

The award of this License does not exempt the Licensee from the obligation to obtain, for execution of the License, any License, permit, approval or consent according to all other laws.

6. Contradiction between the License Provisions

In any case of apparent contradiction between the provisions of the License, the Minister will decide on the interpretation of the provisions, or how to settle the contradiction between them, after the Licensee has been given an opportunity to voice its arguments.

Chapter B - The License - Its Scope, Validity and Revocation

Section A - The Scope of the License and the License Period

7. The Scope of the License

7.1 The Licensee is permitted, according to this License and subject to all its instructions and conditions, to establish, sustain, maintain and operate an MRT System, and through it provide MRT services; for this purpose, the Licensee is permitted to do the following:

a) To establish, sustain, maintain and operate Cellular Radio Bases and connect them to MRT exchanges, and also to connect between MRT exchanges through wireless or physical transmission channels;

b) To connect the MRT System to another Public Telecommunication system in Israel;

c) To enter an agreement with subscribers for the provision of MRT Services;

d) To supply MRT Terminal Equipment to subscribers;

e) To supply its customers with MRT services as set forth in the First Annex to the License;

f) To supply its customers with services that were approved to the Licensee in accordance with Article 67C of the License.⁴¹

7.1a The Licensee’s services to its subscribers will be provided solely through MRT terminal equipment.

7.2 The Licensee in not permitted to provide any MRT or other Telecommunication Service that it is not explicitly permitted to provide within the framework of this License or another License awarded it by the Minister.

8. ⁴²No Exclusivity

8.1 The Licensee shall not have any form of exclusivity whatsoever in the provision of its services.

8.2 The Minister may at any time grant a license for the provision of MRT Services to additional operators.

8.3 Should  the Minister publish a tender for the provision of MRT Services, the Licensee may submit a bid in the tender, however, the Minister may determine , as part of the conditions of such tender, that if the Licensee wins the tender, the receipt of a license shall be conditional upon the Licensee transferring its MRT System to another as the Minister may order, and on such conditions as he may prescribe, and that the Licensee shall cease to provide MRT Services.

⁴¹Amendment No, 64

⁴²Amendment No. 14

9. The License Period

9.1 The validity of this License is for a period of ten (10) years, that will begin on the day the License is awarded (hereinafter “The License Period”).

9.2 The License Period may be extended by six (6) additional years in accordance with Paragraph 10 (hereinafter “The Additional Period”).

9.3 This License may be renewed for one or more Additional Periods of six (6) years, over and above the License Period or the Additional Period, in accordance with Paragraph 11.

9.4 During the entire License Period or the Additional Period or with renewal of the License, the License will be subject to the authority of the Minister in accordance with Paragraphs 13 to 15 regarding changes to the License, its limitation, suspension or revocation.

9.5 ⁴³Notwithstanding the above ⁴⁴in the context of extension of the License, following the winning by the Licensee of Tender No. 1/01, the validity of this License shall be for a period of twenty (20) years that will begin on 19 Shvat 5762 (1 February 2002).

10. Extending the License Period

10.1 The Minister may, at the Licensee’s request, extend the License Period by six (6) additional years, after examining the following:

(A) The Licensee has observed the provisions of the Law, the Ordinance, the regulations therein and the provisions of the License;

(B) The Licensee has acted to constantly improve the MRT Services, their scope, availability and quality and also the technological updating of the MRT System, and there was no act or omission in the Licensee’s activity that harmed or limited competition in the MRT branch;

(C) The Licensee is able to continue to provide MRT Services of a high standard and is able to implement the required investments in the technological updating of the MRT System for improving the scope of the MRT Services, their availability and quality;

(D) The Licensee has efficiently used the frequency bands allocated to it, compared to alternative applications;

10.2 The Licensee will submit its request for extending the License Period in the course of the forty-five (45) days that  precede the period of the eighteen (18) months prior to the  termination date of the License Period.

⁴³Amendment No. 13

⁴⁴Amendment No. 14

10.3 The Licensee will append the following to its request:

(A) A report summarizing all the annual reports submitted by the Licensee according to this License between the commencement date of the License and the submission date of its request;

(B) A comparison of the data in the report with regard to each year with the data of the preceding year, and also explanations of extraordinary variations in the data;

(C) A review of the means, actions and investments undertaken or implemented by the Licensee for the improvement of the quality of the MRT Services, their scope and availability, for the development and technological updating of the MRT System.

10.4 The Concluding Report in accordance with Paragraph 10.3 will contain precise up-to-date details and will be drafted in the form of an affidavit.

10.5 For the purpose of examining the Licensee’s request to extend the License Period, the Minister may require the Licensee to produce, during a period determined in the request and in a manner that the Minister will determine, all information and every document, and without derogating from the generality of the above, the Minister may:

(A) Require the Licensee to append to the Concluding Report any document to verify the data detailed in it, to complete the report or to provide any additional datum it does not contain;

(B) To ask the Licensee to appear before him and answer questions or present documents in its possession or under its control that are related to the data in the report;

(C) To require the Licensee to submit to him an Engineering Plan that describes its plans for the technological updating of the MRT System during the Additional Period.

10.6 The Licensee will comply with every requirement or request as set out in Paragraph 10.5; should the Licensee be required to appear before the Minister, either the chairman of the board of the company holding the License, the General Manager of the company, or a person authorized in writing for this purpose, will appear.

10.7 Should the Licensee not comply with the request or requirement as set out in Paragraph 10.5, on two occasions at least, the Minister may rejects its request to extend the validity of the License.

10.8 The Minister will inform the Licensee of his decision in the matter of its request to extend the validity of the License no later than one year before the termination of the License Period.

10.9 The conditions of this License will apply to the Additional Period, including and changes in them.

10.10 The instructions of Paragraph 100 in the matter of confidentiality will apply, with the required modifications, to information provided by the Licensee in accordance with the instructions of this paragraph, to the Minister or his appointee.

11. Renewing the License

11.1 At the end of the License Period or the Additional Period, the Minister may, at the Licensee’s request, renew the License for one or more Additional Periods of six (6) years, as he decides.

11.2 The Licensee will submit its request for renewal of the License Period in the course of the forty-five (45) days that  precede the period of the eighteen (18) months prior to the termination date of the License Period or of the Additional Period.

11.3 The Minister will inform the Licensee within thirty (30) days from the date its request for renewal of the License was received, whether he intends to take steps to renew the License and the required proceedings for doing so, including proceedings and considerations in accordance with Paragraph 10, or that proceedings will be undertaken for a tender for the provision of the services which are the subject of this License.

12. Termination of the License Period

12.1 If the License Period has ended in accordance with Paragraph 9.5 or the Additional Period in accordance with Paragraph 10.1 or the License Period after its renewal in accordance with Paragraph 11.1, and the License has not been extended or renewed, the Minister may instruct the Licensee to continue operating the MRT System for a  fixed period  (hereinafter “the Service Termination Period”) until a License is awarded to another by law for the provision of the services which are the subject of this License (hereinafter “the Alternative Licensee”), and the proceeding have been completed for transfer of the system according to it, or until a License is awarded to another by law for alternative services; the Service Termination Period will, in any event, be no greater than two years from the date of expiry of the License.

12.2 During the Service Termination Period, and no later than ten (10) months from the day on which a License was awarded to an Alternative Licensee, the Licensee and the Alternative Licensee will enter negotiations for the acquisition of the MRT System at its economic worth and the assignment of rights and obligations of the subscribers to the Alternative Licensee; should the said Licensees not reach complete agreement within ten (10) months as stated above, the price will be determined by an arbitrator appointed by the Chairman of the Chartered Accountants Association, whose decision will be final.

Section B - Changing the Conditions of the License, its Enforcement and Revocation

13. Changing the Conditions of the License

13.1 The Minister may change the conditions of the License, add to them or detract from them, in accordance with the provisions of Paragraph 4 of the Law and, inter alia, if he finds that one of the following exists:

(A) A change has occurred in the suitability of the Licensee to implement the actions and services that are the subject of the License;

(B) A change in the License is required in order to ensure effective and fair competition in the Telecommunication field;

(C) A change in the License is required in order to ensure the Grade of Service provided in accordance with it;

(D) Changes in Telecommunication technology justify modifying the License;

(E) Changes have occurred in the electromagnetic spectrum needs that justify, in the Minister’s opinion, changes in the License;

(F) Considerations of public interest justify modifying the License;

(G) A change in government policy in the telecommunications sector demands a modification of the License;

(H) A change is required in the License by reason of its breach by the Licensee, as set out in Paragraph 15.

13.2 The Minister will act in accordance with his authority, as set out in Paragraph 13.1, after giving the Licensee a reasonable opportunity to voice its claims.

14. Revocation of the License

14.1 The Minister may revoke the License before the end of its period if one or more of the causes set out in Paragraph 6 of the Law exists, or in any one of the following cases:

(A) The Licensee did not disclose required information to the Tender Committee or gave it incorrect information;

(B) The Licensee was required and refused to give the Minister or his appointee required information that is in its possession, and which it had to divulge by virtue of the provisions of this License or by law,  or the Licensee gave false information to the Minister or his appointee;

(C) The Licensee has not observed the instructions of the Law, the Ordinance or the regulations therein;

(D) The Licensee has committed a substantial breach of the License conditions and without derogating from the generality of the above, including the following:

(1) The Licensee does not comply with the coverage or quality requirements set out in this License;

(2) The Licensee has not paid all the royalties and frequency fees, or one of these, on the date stipulated in this License;

(E) The Licensee has not commenced provision of services in accordance with the stipulations of this License or has illegally ceased, limited or delayed any one of its services;

(F) The Licensee has not invested the required sums in the establishment and operation of the MRT System at the coverage and quality standards determined by the Ministry in accordance with the written undertaking (Appendix I);

(G) Should one or more of the attributes that made the Licensee fit for participation in the Tender for MRT services or to be a Licensee, cease to exist, including the following:

(1) The Licensee has ceased to be a company registered in Israel;

(2) Cancelled⁴⁵

(3) The majority of the directors of the company that is the Licensee are not Citizens or Residents of Israel;

(4) The General Manager of the company that is the Licensee or a director therein, has been convicted of an infamous offense and continues to serve in office;

(5) The General Manager of the company that is the Licensee is not a Citizen or Resident of Israel ;

(6) Prior to the expiry of five (5) years from the date of the award of the License, the voting rights of the MRT Operator or of a Controlling Corporation in an MRT Operator (hereinafter, with regard to this clause - “Controlling Corporation”),  at the general meeting or the right to appoint a director or general manger in the company that is the Licensee, decreased to less than twenty-five percent (25%); the rate of holdings of an MRT Operator or of a Controlling Corporation will be calculated according to the provisions of Paragraph 23.6; However, the holdings of an MRT Operator or a Controlling Corporation that has direct or indirect holdings in the Licensee will be taken into account, with regard to this clause, only if all of the following exist:

(1) Each body in the chain of holdings is controlling the body held by it as aforesaid, down to the body that directly holds the Licensee;

(2) The rate of holding in the Licensee of the MRT Operator or a Controlling Corporation, either directly or indirectly, will not be less than twenty-five percent (25%);

(3) The MRT Operator undertook to the Licensee to put at its disposal all the information in its possession that is required for the establishment and operation of the MRT System, for the provision of MRT Services, their marketing and sale.

⁴⁵Amendment No. 31

(7) Subject to what is set out in Clause 9, one of the following exists in the Licensee:

- The Licensee, an Office Holder or Interested Party in the company that is the Licensee or an Office Holder in an Interested Party thereof is an Interested Party in a Competing MRT Operator without obtaining permission to do so from the Minister as set out in Paragraph 23.8, or has not fulfilled one of the conditions included in the permit it obtained from the Minister as stated above;

- An Office Holder, Interested Party or an Office Holder in an Interested Party  in the company that is the Licensee is an Office Holder in a Competing MRT Operator or in an Interested Party in a Competing MRT Operator, without having obtained permission to do so from the Minister; as stated in Paragraph 23.2, or has not fulfilled one of the conditions included in the permit it obtained from the Minister as stated above;

(8) If one of the following exists in an Interested Party in the company that is the Licensee, that is a trust fund, an insurance company, an investment company or a pension fund:

- It holds, either directly or indirectly, more than five percent (5%) of any Means of Control in a Competing MRT Operator, without having obtained permission to do so from the Minister;

- It holds, either directly or indirectly, more than five percent (5%) of any Means of Control in a Competing MRT Operator in accordance with a permit from the Minister, and in addition it has a representative or appointee who is an Office Holder in a Competing MRT Operator, unless it has been legally required to do so;

- It holds, either directly or indirectly, more than ten percent (10%) of any Means of Control in a Competing MRT Operator, even if it has received permission to hold up to ten percent (10%) of the said Means of Control;

(8a) If one of the following exists in an Interested Party in a Competing MRT Operator, that is a trust fund, an insurance company, an investment company or a pension fund:

- It holds, either directly or indirectly, more than five percent (5%) of any Means of Control in the Licensee, without having obtained permission to do so from the Minister;

- It holds, either directly or indirectly, more than five percent (5%) of any Means of Control in the Licensee in accordance with a permit from the Minister, and in addition it has a representative or appointee who is an Office Holder in the Licensee, unless it has been legally required to do so;

- It holds, either directly or indirectly, more than ten percent (10%) of any Means of Control in the Licensee, even if it has received permission to hold up to ten percent (10%) of the said Means of Control;

(9) The Licensee, an Office Holder or an Interested Party in the Licensee, or an Office Holder in an Interested Party in the Licensee, controls a Competing MRT Operator, is controlled by a Competing MRT Operator, by an Office Holder or an Interested Party in a Competing MRT Operator, by an Office Holder in an Interested Party in a Competing MRT Operator, or by a person or corporation that controls a Competing MRT Operator;

(H) The Means of Control in the Licensee or control of it have been transferred in contravention of Paragraph 21;

Notwithstanding  the above-mentioned, a transfer or purchase of a percentage of the Means of Control in the Licensee, either directly or indirectly, that requires consent in accordance with Articles 21.1 or 21.3 (other than a transfer or purchase that results in a transfer of control), without first receiving the Minister's prior written consent as required according to these articles, shall not constitute a cause to revoke the License if the Minister's consent was given in writing in advance for a public offering of the Tradable Means of Control or for registration for trading of the Tradable Means of Control, on the securities exchange in Israel or overseas,  under which the Means of Control in the Licensee may be transferred in a percentage that requires consent in accordance with Articles 21.1 or 21.3 (other than a transfer or purchase that results in a transfer of control), and it shall all be subject to the conditions to be set by the Minister when he gives his consent. The contents of this article are in addition to and do not derogate from the provisions of Article 21.8 of the License. For the purpose of this Article, "Tradable Means of Control"- as defined in Article 21.5 of the License.⁴⁶

(I) There was an act or omission in the Licensee’s activity that harmed or limited competition in the MRT branch;

(J) A receiver or temporary liquidator was appointed for the company that is the Licensee, an order was issued for its winding-up or it decided to be voluntarily wound-up;

(K) Cancelled;

(L) The Licensee requested revocation of the License.

(M) The Licensee breached on of the provisions in Article 22A.⁴⁷

14.1 A. With regard to sub-clause 14.1 (e48), limitation of service due to technological circumstances that is implemented after an advance written and reasoned notice was sent to the Director and after its approval by the Director, will not be viewed as an illegal limitation of service.

14.1 B. With regard to sub-clause 14.1 (G) (6), “MRT Operator” is an operator of an MRT system abroad, through which MRT services are provided to at least five hundred thousand (500,000) subscribers.

14.2 Should the Minister consider that the cause of revocation, under the circumstances of the matter, does not require revocation of the License, the Minister will give the Licensee a fair opportunity to correct the act or omission that constitute a cause for revocation.

⁴⁶Amendment No. 25

⁴⁷Amendment No. 31

⁴⁸Amendment No. 4

14.3 The Minister will give prior notice to the Licensee regarding his intention of revoking the License, and in the notice will note the cause and enable the Licensee, within a period determined in the notice, to voice its claims regarding the cause of revocation, either in writing or orally, according to circumstances.

14.4 The Minister may invite the Licensee to appear before him and he is permitted to require the Licensee to answer questions, present documents or to provide him with information and documents insofar as this is required for the purpose of clarifying the cause of revocation.

14.5 Should the Licensee be required or invited as stated above, it will fulfill the requirement or respond to the invitation on the set date.

14.6 Should the Licensee not respond, at least twice, to the Minister’s requirement or invitation within the period determined by the Minister in the requirement or invitation, the Minster may revoke the License through a notice sent to the Licensee (hereinafter “Notice of Revocation”).

14.7 In the Notice of Revocation the Minister will determine the date on which revocation of the License will take effect, and he may instruct the Licensee to continue to provide the services in accordance with this License until a License is awarded to another, or until the appointment of a trustee, or until the appointment of a receiver by law for management and operation of the MRT System, as the case may be.

14.8 The Licensee will continue to provide the services up to the date set by the Minister in his notice and will observe the instructions of this License and every instruction given to it by the Minister in this matter.

15. Other Remedies

In addition to his authority to revoke the License as set out in Paragraph 14, the Minister may, if the causes set out in Paragraph 14.1 exist, limit or suspend the License, or change its conditions or foreclose the guarantees given by the Licensee to ensure the fulfillment of the License conditions, wholly or in part; the detailed proceedings in the matter of revocation of the License will be applied, with the necessary changes, to limitation of the License, its suspension, and the foreclosure of the guarantees.

Chapter C: Ownership, Assets and Means of Control

Section A: Limitations in Respect of the Transfer of the License and its Assets

16. Deleted⁴⁹.

17. Ownership of the MRT System

17.1 The Licensee shall be the owner and operator of the MRT System.

17.2 Notwithstanding  Article 17.1, the Licensee may make use of:

(a) physical or wireless transmission lines of another licensee;

(b) the radio infrastructure, that is functioning and operating by way of a Cellular Radio Infrastructure Licensee, in the framework of a usage agreement, as defined in Clause 19.3C, and after receiving the Director General's prior written agreement, and in accordance with the terms determined by the Director General.

⁵⁰

18. Limits on the Transfer of License Assets

18.1 The Licensee is not allowed to sell, lease or mortgage any of the assets that serve for the implementation of the License (hereinafter: “the License Assets”), unless given the Minister’s prior written consent, in accordance with the terms set by the Minister.

18.2 Without derogating from the generality of what is set out in Paragraph⁵¹ 18.1, the Minister will give his approval to give title to rights in the License assets to a third party, if he is satisfied that the Licensee has ensured that in any event, the realization of the rights by the third party will not cause any damage to the provision of services according to this License, as long as the Licensee must provide these services according to the provisions of this License.

18.3 Despite what is stated in Paragraph 18.1, the Licensee may mortgage any of the License’s assets in favor of a banking corporation that is legally active in Israel, for the purpose of obtaining bank credit, on condition that advance notice of the intended mortgage was given to the Director, and in the mortgage agreement there is a clause that ensures that realization of the rights by the banking corporation will not cause any damage to the provision of services in accordance with this License;  with regard to this clause, “Banking Corporation” - as defined in the Banking Law (Licensing) 1981, with the exception of “External Corporation” as defined in the same Law.

⁴⁹Amendment No. 64

⁵⁰Amendment No. 83

⁵¹Amendment No. 64

18.4 The provisions of Paragraph 18.1 will not apply to the sale of items of equipment during an upgrading process, including the sale of equipment, as aforesaid, as part of a trade-in.

⁵²18.4A For purposes of sale, lease, mortgage or transfer of the license assets to a Cellular Radio Infrastructure Licensee, whom the Licensee is his client, the provisions of this Article shall not apply.

19. Agreement with another

19.1 In the event that the Licensee wishes to provide any of the services in accordance with the License, wholly or partly, through another party on its behalf, it will request the Director’s approval; the Licensee will append to its request the agreement⁵³ between it and the other party; the provision of this Paragraph will not apply to an agreement between the Licensee and a distributor of MRT Terminal Equipment or whoever acts on behalf of the Licensee for the marketing of its services.

19.2 The Director may approve the request, reject it or make his approval contingent on conditions that must be fulfilled, including the amendment of the agreement; the Director will consider, inter alia, to what extent the terms of the agreement with the other party ensure maintaining a fair competition, the grade of service for the public, the fulfillment of the License provisions and the Licensee’s obligations in accordance with it; the Director will not approve an agreement with another party that contradicts the Licensee’s obligations in accordance with this License.

19.3 The agreement with another party will not detract from the Licensee’s obligations and its responsibility for the implementation of any of the services which are the subject of this License, wholly or partly, according to the provisions of the License, and will not detract from the powers of the Minister, Director, or anyone on their behalf.

Section A1- Mutual Relations with a Cellular Radio Infrastructure Licensee

19A Definitions

19A.1 In this section:

19A.1 "Confidential Commercial Information" - Data regarding the Licensee that is not public, and that relates to one of the following: (1) Amount and volume of telecommunication messages transferred through the network, the kinds thereof and their destinations; (2) Number of subscribers, their classification and characteristics; (3) Network structure, its layout and the technology according to which it operates;  

⁵²Amendment No. 83

⁵³Amendment No. 41

		(4) Plans for the expansion of the network, changes therein and operation of new services therewith; (5) Marketing or other technological plans or activities, the information regarding them was transferred to the Licensee by the MRT licensee, or other business activity, the information regarding which was classified by the MRT licensee as confidential commercial information; (6) Any other information which cannot be legally easily discovered by others, whose confidentiality grants its owners a business advantage over its competitors.
"Passive Component"	-	The passive elements in the cellular radio center's website, including pole, structure, electricity and air conditioning;
"Active cooperation of an antenna"	-	Passive cooperation and in addition, cooperation of the antenna or cable feed to the antenna;
"Active Cooperation of a frequency" (MOCN54)	-	Active cooperation of an antenna, including sharing of radio equipment and frequency that were allotted for use of the MRT licensee;
"Passive Cooperation"	-	Whole or partial cooperation of a Passive Component in a significant number of cellular radio center's websites between two or more of the MRT licensee;

19B. Cooperation with another mobile telephony communications license owner

19B.1 The Licensee may enter into an agreement with another MRT licensee (hereinafter in this section: "Other Licensee") for the purpose of cooperation ("Cooperation Agreement") in any one of the following options only:

(a) Passive Cooperation Agreement;

(b) Active Cooperation of an Antenna Agreement;

(c) Active Cooperation of a Frequency Agreement (MOCN);

19B.2 Without derogating from the aforementioned in Article 19.3B:

(a) The Licensee may enter into an agreement with other MRT licensee in various cooperation agreements in each of the 2nd, 3rd and 4th Generation networks. Despite the aforementioned:

1) Active Cooperation of a Frequency (MOCN) shall not be approved between two operators.

⁵⁴ Multi Operator Core Network

2) Active Cooperation of a Frequency (MOCN) in 2nd or 3rd Generation shall be approved only if both cooperating licensee were allocated 4^th Generation frequencies and if the cooperating licensee who is not an operator has an Active Cooperation of a Frequency (MOCN) in 4^th Generation.

For the purpose of this sub-clause, "Operator" – a licensee  who has completely laid out access network in 3^rd Generation: Pelephone Communications Ltd., Cellcom Israel Ltd., Partner Communications Company Ltd.;

(b) Cancelled.

19B.3 If the Licensee and the Other Licensee  reach a cooperation agreement of the types specified in Article 19.1B, the Licensee shall submit a written request to the Director General no later than thirty days from the date of signature of the Cooperation Agreement (hereinafter in this clause – the "Request"), and shall request his approval of the Cooperation Agreement, and the Request shall include, at least, all of the following:

(a) Details of the Licensee and the Other Licensee;

(b) Type of Cooperation Agreement as stated in Article 19.1B;

(c) Executive summary of the main points of the Cooperation Agreement;

(d) A copy of the Agreement with all of its attachments and appendices, together with an affidavit of an office holder of the Licensee that except for these documents, no agreement exists, in writing or orally, in connection with the Agreement;

(e) An opinion according to which the Agreement meets the most recent "Broadband Access Cooperation of a License Owner for the Provision of MRT Services" policy and the terms of Section A1. The opinion shall include an analysis of the influence of the Cooperation Agreement on the competition in the telecommunications and broadcasting area;

(f) The date scheduled for the commencement of the implementation of the Agreement and its expiration;

19B.4 The Director General may approve the Request, deny it or condition its approval, including amending the Agreement.

19B.5 The Licensee may commence the implementation of the Cooperation Agreement only after the Director General approved the Request of the Licensee and the Other Licensee in writing.

19C Cooperation Agreement and Use Agreement

19C.1 If the Licensee files a request for an Active Cooperation of a Frequency Agreement (MOCN), the Director General shall consider the request, taking into account, inter alia, the existing competition level of MRT services and the potential harm to competition, the existing and expected frequency inventories and the efficiency of use of the frequencies, the survivability and the redundancy of the networks from a national standpoint and ensuring the telecommunication service level over time.

19C.2 The Active Cooperation of a Frequency Agreement (MOCN) shall include the following terms:

(a) Cooperating licensees shall establish a joint corporation, and shall have equal control thereof. The joint corporation shall be required to obtain a cellular radio infrastructure license;

(b) During the entire term of the Cooperation Agreement, the following provisions shall apply to each one of the cooperating licensees in regards to the Passive Component and the radio centers included in the joint access network:

1) In the cellular radio centers – all cooperating licenses shall hold equally;

2) In the Passive Component – each of the cooperating licensees shall have the right to make effective use of all Passive Components in the access network.

In this regard – "Right to make effective use" – indefeasible right to use, during the relevant license period, the Passive Component, resulting from ownership or other source, which shall allow its owners to perform all actions connected to the establishment, existence and operation of cellular radio centers by way of or on the Passive Components.

(c) The Cooperation Agreement expiration mechanism, which ensures the ability of each of the cooperating licensee to continue providing MRT services to its subscribers after said expiration, in accordance with the provisions of its license. The framework of said expiration mechanism shall include provisions which shall arrange for the continued existence of the right to make effective use of the Passive Components in case of termination of the Cooperation Agreement in accordance with the provisions of sub-article (2) and the mutual requirement to allow for Passive Cooperation even after the termination.

19C.3 Without derogating from the aforementioned in Article 19.2C, the Licensee, the Other Licensee and the Cellular Radio Infrastructure Licensee shall enter into a usage agreement between them, which grants the Cellular Radio Infrastructure Licensee an indefeasible right of use (IRU) in the joint access network components, which are not owned by the Cellular Radio Infrastructure Licensee, which specifies the method of use that shall be made with the joint network (hereinafter: the "Usage Agreement").

In this regard, the indefeasible right of use shall be provided for a period not to exceed 10 years, and shall refer to the relevant access network components for the generation which was agreed upon in the Cooperation Agreement.

19C.4 Any change in the Usage Agreement or in the Cooperation Agreement shall be presented to the Director General for approval no later than ten days from the date of signing the change; the Licensee shall forward to the Director General, upon request, a copy of the Usage Agreement or any change therein.

19C.5 The Cooperation Agreement or Usage Agreement (hereinafter in this Article – the "Agreement") shall not limit, directly or indirectly, the Licensee and the Other Licensee from reaching an agreement with an additional licensee or an MRT licensee on another network or from signing another agreement with them, or from causing discrimination in regards to the terms of use of the cellular radio infrastructure.

19C.6 If the Licensee or the Other Licensee shall wish to make use of the radio infrastructure of the Cellular Radio Infrastructure Licensee, it shall contact the licensees who are parties to the agreement in order to formulate a Cooperation Agreement, and shall act as stated in Article 19B.

19C.7 Nothing in the contracting with the Cellular Radio Infrastructure Licensee may derogate from the duties of a licensee and from its responsibilities to supply to its customers any service of the services under this license, in whole or in part, under the provisions of this license.

19C.8 If the parties do not reach an agreement, each party may contact the Ministry in order to resolve the disputes between them in accordance with Section 5 of the Law.

19D Obligation for Structural Separation

19D.1 The Licensee shall maintain structural separation between itself and the Cellular Radio Infrastructure Licensee, as specified below:

(a) Complete separation between its Management and the Management of the cellular radio infrastructure license owner; in this regard – "Management", with the exception of an office holder who is not a director of the Licensee, who is also a director of the Cellular Radio Infrastructure Licensee.

(b) Complete separation between its assets and the assets of the Cellular Radio Infrastructure Licensee, with the exception of the radio infrastructure of the Licensee;

(c) The Licensee shall not employ the employees of the Cellular Radio Infrastructure Licensee, and the Cellular Radio Infrastructure Licensee shall not employ employees of the Licensee;

(d) The Licensee shall not employ anyone who was a Management employee of the Cellular Radio Infrastructure Licensee for one year after the termination of his employment, without the approval of the Director General;

(e) The Licensee shall neither receive nor transfer to the Cellular Radio Infrastructure Licensee Confidential Commercial Information that is not required for the provision of the Cellular Radio Infrastructure Licensee's services to the Licensee.

19D.2 Regarding confidentiality of commercial information, the Licensee shall do as follows:

a) The Licensee shall refrain from transferring Confidential Commercial Information to the Cellular Radio Infrastructure Licensee, except for information required for the provision of the services of the Cellular Radio Infrastructure Licensee to the Licensee;

b) The Licensee shall refrain from transferring Confidential Commercial Information to the Other Licensee, holding the same Cellular Radio Infrastructure Licensee or receives services therefrom;

c) The Licensee shall determine procedures and rules for maintaining Confidentiality of Commercial Information, and for the prevention of its transfer as stated in sub-articles (a) and (b). The procedures shall determine, inter alia, limitations regarding the distribution of the Confidential Commercial Information to the Licensee and the Cellular Radio Infrastructure Licensee, and the access to Confidential Commercial Information by employees who are not supposed to handle it in the framework of their positions.

19D.3 If the Minister becomes aware that there is a real concern to damage to competition in the telecommunications area or to the public interest, he may instruct that the provisions of this chapter, in whole or in part, shall apply to an affiliated company to the Licensee that has a license under the Communications Law.

19D.4 If the Minister becomes aware that in a certain incident, circumstances existed which permitted it, and after he was convinced that there would be no damage to competition in the telecommunications or broadcast area or to the public interest, he may, according to a written request from the Licensee, permit by way of a written approval, reservations to the structural separation obligation set forth in this section or according thereto, and he may determine conditions for it.

Section B: Means of Control - Changes and Limitations

20. Details of the Licensee

20.1 Details regarding the legal entity of the licensee, its incorporation, the parties controlling it, those who have considerable influence over it, interested parties in it, officers in it are listed in Annex A of the license; the licensee shall provide the director annually at the beginning of March, with an updated Annex A.⁵⁵

20.2 The Licensee will report to the Director in writing about any change in the information included in Appendix A, including any transfer or acquisition of control or of five percent (5%) or more of the Means of Control in the company that is the Licensee, or a change in the appointment of a Director or a General Manager; the same will be reported within fourteen (14) days from the date of the change.

21. Transfer of Means of Control

21.1 A holding of ten percent (10%) or more of any of the Means of Control in the Licensee will not be transferred,  either directly or indirectly, either all at once or in parts, unless given the Minister’s prior written consent.

21.2 Any of the said Means of Control, or a part of them, in the Licensee, may not be transferred in any way,  if as a result of the transfer, control in the Licensee will be transferred from one person to another, unless given the Minister’s prior written consent.

21.3 No control shall be acquired, either direct or indirect, in the Licensee, and no person, whether on his/her own or together with his/her relative or with those acting with him/her on a regular basis, shall acquire in it ten percent (10%) or more of any of the Means of Control in the Licensee, whether all at once or in parts, unless given the Minister’s prior written consent.

21.4 Deleted⁵⁶

21.5 ⁵⁷Despite the provisions of sub-clauses 21.1 and 21.3 above, should there occur a transfer or purchase of a percentage of Tradable Means of Control in the Licensee requiring consent under clauses 21.1 and 21.3 (other than a transfer of purchase that results in a transfer of control), without the Minister’s consent having been sought, the Licensee shall report this to the Minister in writing, and shall make an application to the Minister to approve the said transfer or purchase of the Means of Control in the Licensee, within 21 days of the date on which the Licensee became aware of such.

In this Clause 21, “Tradable Means of Control” – Means of Control, including Global or American Depository Shares (GDR’s or ADR’s), or similar certificates, registered for trading on the securities exchange in Israel or overseas, and offered to the public by prospectus, or held by the public in Israel or overseas.

⁵⁵Amendment No. 41

⁵⁶Amendment No. 52

⁵⁷Amendment No. 3

21.6 Neither the entry into an underwriting agreement relating to the issue or sale of securities to the public, the registration for trading on the securities exchange in Israel or overseas, nor the deposit or registration of securities with a registration company or with a depository agent or a custodian for the purpose of registration of GDRs or ADRs or similar certificates relating to the issue or sale of securities to the public shall in and of themselves be considered as a transfer of Means of Control in the Licensee⁵⁸.

21.7            (a) Irregular Holdings shall be noted in the Licensee’s members register (the list of shareholders) stating the fact that they are irregular, immediately upon the Licensee’s becoming aware of this, and a notice of theregistration shall be given by the Licensee to the holder of such Irregular Holding and to the Minister.

(b) Irregular Holdings, noted as aforesaid in clause 21.7(a), shall not provide the holder with any rights, and shall be “dormant shares” as defined in Section 308 of the Companies Law 5759-1999, expect in the case of the receipt of a dividend or any other distribution to shareholders (especially the right to participate in an allotment of rights calculated on the basis of holdings of Means of Control in the Licensee, although holdings accumulated as aforesaid shall also be considered as Irregular Holdings), and therefore no action or claim of the activation of a right by virtue of the Irregular Holdings shall have any force, except in the case of the receipt of a dividend or any other distribution as aforesaid.

Without derogating form the generality of the above:

(1) A shareholder who takes part in a vote during a meeting of shareholders shall advise the Licensee prior to the vote, or in the case of documentary voting on the voting document, whether his holdings in the Licensee or his voting require consent under clauses 21 and 23 of the License or not; where a shareholder does not so advise, he may not vote and his vote shall not count.

(2) No director of the Licensee shall be appointed, elected or transferred from office by virtue of an Irregular Holding; should a director be appointed, elected or transferred from office as aforesaid, the said appointment, election or transfer, as the case may be, shall be of no effect.

(3) Irregular Holdings shall not provide voting rights in the general meeting;

For the purposes of this clause:

“Irregular Holdings” – the holding of Tradable Means of Control without the Minister’s consent as required under clause 23, and all holdings of a person holding Tradable Means of Control acting contrary to the provisions of clause 24; for so long as the Minister’s consent under clause 21 has been sought but not yet granted, or whilst there is a situation of breach of the provisions of clauses 23 or 24.

⁵⁸Amendment No. 4

(c) The provisions of clause 21.7 shall be included in the Articles of Association of the Licensee, including the provisions of clause 21.9, mutatis mutandis.

21.8 For so long as the Articles of Association of the Licensee provide as set out in clause 21.7, and the Licensee acts in accordance with the provisions of clauses 21.5 and 21.7, and for so long as none of the holdings of ⁵⁹Founding Shareholders or their Substitutes  reduces to less than  ⁶⁰⁶¹ 26⁶²% of all Means of Control in the Licensee immediately prior to the listing of the shares for trade, and for so long as the Articles of Association of the Licensee provide that a majority of the voting power in the general meeting of the Licensee may appoint all members of the Board of Directors of the Licensee, other than external directors required by any law and/or the relevant Exchange Rules, the Irregular Holdings shall not, in and of themselves, give rise to a cause for the cancellation of the Licensee.

'For the purpose of this article: "Founding Shareholders or their Substitutes"- Matbit Telecommunications Systems Ltd., Advent Investment Pte Limited, Matav Investments Ltd and Tapuz Cellular Systems limited Partnership as well as any other entity that one of them has transferred the Means of Control in the Licensee to, with the Minister's consent, before 4.7.2004 (each of the above entities shall be termed "Founding Shareholder"), as well as any other entity that a Founding Shareholder will transfer Means of Control in the Licensee to after 4.7.2004, provided that the Minister gave his written consent that the transferree be considered for this matter as the Founding Shareholder's substitute from the date to be determined by the Minister, including anyone that is an Israel Entity as defined in Article 22A.2, that purchased Means of Control from the Licensee and received the Minister's approval to be considered a founding shareholder or their substitute from the date set by the Minister⁶³. Such consent under this article does not exempt the Licensee from the obligation to receive the Minister's consent for every transfer of the Means of Control in the Licensee that requires the Minister's consent in accordance with any other article in the License.⁶⁴

21.9 The provisions of clauses 21.5 through 21.8 shall not apply to the founding shareholders or their substitutes.⁶⁵.

22. Placing a Charge on Means of Control

Any shareholder in the company that holds the License, or a shareholder in an Interested Party in the same company, is not allowed to encumber his/her shares, in a way that the realization of the charge would cause a change in the ownership in ten percent (10%) or more of any of the Means of Control in the Licensee, unless the charge agreement includes a constraint, according to which the charge cannot be realized without prior consent, in writing, by the Minister.

⁵⁹Amendment No. 25

⁶⁰Amendment No. 9

⁶¹Amendment No. 28

⁶²Amendment No. 31

⁶³Amendment No. 31

⁶⁴Amendment No. 25

⁶⁵Amendment No. 31

22A. Israeli Requirement and Holdings of Founding Shareholders or their Substitutes⁶⁶

22A.1 The total cumulative holdings of the "Founding Shareholders or their Substitutes", as defined in Article 21.8, (including anyone that is an “Israeli Entity” as defined in Article 22.2A below, that purchased Means of Control from the Licensee and received the Minister’s approval to be considered a founding shareholderor their substitute from the date set by the Minister), and are bound by an agreement for the fulfillment of the provisions of Article 22A of the License (in this Article they will all be considered “Founding Shareholders or their Substitutes”) shall not be reduced to less than 26% of each of the Means of Control in the Licensee.

22A.2 The total cumulative holdings of  "Israeli Entities", one or more, that are considered as one of the Founding Shareholders or their Substitutes, from the total holdings of Founding Shareholders or their Substitutes as set forth in Article 22A.1 above, shall not be reduced at all times to less than 5% of the total issued share capital and from each of the Means of Control in the Licensee. For this matter, the issued share capital of the Licensee shall be calculated by deducting the number of “Dormant Shares” held by the Licensee.

In this Article-

"Israeli Entity"- for an individual-an Israeli citizen or resident of Israel, For a corporation- a corporation that was incorporated in Israel and an individual that is a citizen and a resident of Israel, controls the corporation either directly or indirectly, as long as the indirect control shall be only through a corporation that was incorporated in Israel, one or more. However, for the matter of indirect holdings, the Prime Minister and the Minister of  Communications may approve holdings through a corporation that has not been incorporated in Israel, as long as the corporation does not directly hold shares in the Licensee, and only if they are convinced that this will not derogate from the provisions of this article. For this matter,  “Israeli citizen”- as defined in the Nationality Law, 5712-1952; “resident”-as defined in the Inhabitants Registry Law, 5725-1965.

For this matter, "Dormant Shares"- as defined in Article 308 of the Companies Law, 5759-1999.

22A.3 At least one tenth (10%) of the members of the Board of Directors of the Licensee shall be appointed by the  Israeli Entities as set forth in Article 22A.2. Notwithstanding the above-mentioned, for this matter- if the Board of Directors of the Licensee shall consist of  up to 14 members – at least one director shall be appointed by the Israeli entities as set forth in Article 22.2A above, if the Board of Directors of the Licensee shall consist of between 15 and 24 members-at least 2 directors shall be appointed by the Israeli entities as set forth in Article 22.2A above and so on and so forth.

⁶⁶Amendment No. 31-Amendment No. 31 will come into effect upon completion of all of the obligations set forth in article 22A and no later than 30 June 2005, in accordance with the Ministry of Communications document 62/05-4031 dated 13 March 2005

22A.4 The Licensee's Board of Directors shall appoint from among its members that have security clearance and security compatibility  to be determined by the General Security Service  (hereinafter: “ Directors with Clearance”) a committee to be designated  "the  Committee for Security Matters", or CSM.

The CSM  shall consist of at least 4  Directors with Clearance  including at least one External Director. Security matters shall be discussed, subject to Article 22A.5, solely by the  CSM. A resolution that was adopted or an action that was taken by the CSM , shall have the same effect as a resolution that was adopted or an action that was taken by the Board of Directors and shall be discussed by the Board of Directors only if necessary in accordance with Article 22A.5 and subject to Article 22A.5.

In this article-“security matters”-as defined in the Bezeq Order (Determination of Essential Service Provided by “Bezeq”, the Israeli Telecommunications Company Ltd), 5757-1997, as of March 9, 2005.

22A.5 Security matters that the Board of Directors or the Audit Committee of the Licensee shall be required to consider  in accordance with the mandatory  provisions of the Companies Law, 5759-1999, or in accordance with the mandatory  provisions of any other law that applies to the Licensee shall be discussed, if they need to be discussed by the Board of Directors or the Audit Committee, only in the presence of  Directors with Clearance. Directors that do not have security clearance shall not be allowed to participate in this Board of Directors or Audit Committee meeting and shall not be entitled to receive information or to review documents that relate to this matter. The legal quorum for such meetings shall include only Directors with Clearance.

The Licensee may set out in its Articles of Association that an Office Holder, who in the capacity of his position or based on the provisions of the law or the Articles of Association, should have received information or participate in security matter meetings and this was denied him due to Article 22A.5, will be released  from any liability for any claim of breach of  duty of care towards the Licensee, if the breach of duty of care was  a result of his or her inability to participate in the meetings or receive  information.

22A.6 The shareholders at a general meeting shall not be entitled to assume, delegate, transfer or exercise any of the authorities  granted  to another organ in the company, regarding security matters

22A.7         (a) The Minister shall appoint an observer for the Board of Directors and committee meetings, that has security clearance and security compatibility that will be determined by the General Security Services.

(b) The observer shall be a government employee,  qualified  to serve  as a director, in accordance with Chapter C of the Government Companies Law, 5735-1975.

(c) In addition, and without derogating from any duty imposed on him by any law, the observer shall be bound by confidentiality towards the Licensee, except as the matter may be required  to fulfill his  responsibilities as an observer. The observer shall not act as an observer or in any other capacity for any entity that deals with the provision of telecommunication services and directly competes  with the Licensee, and shall refrain from any conflict of interest between his position as an observer and between the Licensee, excluding conflicts of interest that result from his being a government employee that is fulfilling his responsibilities  as an observer with the Licensee. The observer shall undertake towards the Licensee not to serve as an observer or an office holder, and not to fulfill a position or be employed, directly or indirectly by any  entity that directly competes  with the Licensee or  has a conflict of interest with the Licensee, excluding a conflict of interest that results from his being a government employee that is fulfilling his responsibilities as an observer with the Licensee throughout the duration of his position as an observer with the Licensee and for eighteen months  after he completes this term.

In any case of a dispute regarding a conflict of interest of the observer, the matter shall be decided by the State Attorney General or a person on his behalf.

(d) Notices to Board of Director and committee meetings, including the CSM, shall be sent to the observer and he shall be entitled to participate as an observer in each such meeting.

(e) The observer's entitlement to receive information from the Licensee, shall be the same as a director. If the Licensee believes that certain information that is sensitive business information is not required by the observer in order to fulfill his duties, the Licensee may delay delivery  of such information to the observer and shall inform him accordingly. If the observer believes that he should receive such information, the matter shall be decided by the head of the General Security Services.

(f) If the observer believes  that the Licensee adopted or is about to adopt a resolution regarding security matters, contrary to the provisions of the License, contrary to Article 13 of the Law or contrary to the provisions of Article 11 of the General Security Services Law, 5762-2002, he shall immediately notify the Licensee in writing. Such a notice shall be sent to the chairman of the Board of Directors and to the chairman of the CSM  and adequate time shall be given, under the circumstances of the case, to remedy the breach or to change the resolution, if possible.

22A.8 The provisions of Article 22A of the License shall be adopted in the Articles of     Association of the Licensee.

Section C: Cross-Ownership and Conflict of Interests

23. Prohibition of Cross-Ownership

23.1 The Licensee, an Office Holder or an Interested Party in the Licensee, as well as an Office Holder in an Interested Party in the Licensee, shall not hold, either directly or indirectly, five percent (5%) or more of any Means of Control in a Competing MRT Operator, and shall not serve as an Office Holder in a Competing MRT Operator or in an Interested Party in a Competing MRT Operator; for this matter, “Holding” includes holding as an agent.

23.2 Notwithstanding the provisions of Paragraph 23.1, the Minister may, based upon written request, permit an Office Holder in the Licensee to serve as an Office Holder in an Interested Party in a Competing MRT Operator, or permit an Office Holder in an Interested Party in the Licensee to serve as an Office Holder in a Competing MRT Operator or in an Interested Party in a Competing MRT Operator, if he is satisfied, that this will not harm the competition in MRT Services;  the Minister may condition the granting of such permit on conditions that the Office Holder must fulfill for prevention of harm to the competition as aforesaid.

23.3 Notwithstanding the provisions of Paragraph 23.1, an Interested Party in the Licensee, which is a trust fund, an insurance company, an investment company or a pension fund, may hold up to ten percent (10%) of the Means of Control in a Competing MRT Operator, and an Interested Party in a Competing MRT Operator, which is a trust fund, an insurance company, an investment company or a pension fund, may hold up to ten percent (10%) of the Means of Control in the Licensee, provided it does not have a representative or an appointee on its behalf among the Office Holders of a Competing MRT Operator or of the Licensee, as the case may be, unless it is required to do so by law.

23.4 The Licensee, an Office Holder or an Interested Party in the Licensee, as well as an Office Holder in an Interested Party in the Licensee, will not control a Competing MRT Operator, and will not cause it, by any act or omission, to be controlled by a Competing MRT Operator or by an Office Holder or an Interested Party in a Competing MRT Operator, or by an Office Holder in an Interested Party in a Competing MRT Operator, or by a person or corporation that controls a Competing MRT Operator.

23.5 The rate of indirect holding in a corporation will be a product of the percentage of holdings  in each stage of the chain of ownership, subject to what is set out in Paragraph 23.6; for example:

(A) ‘A’ holds 40%  in Company ‘B’;

(B) Company ‘B’ holds 40%  in Company ‘C’;

(C) Company ‘C’ holds 25%  in Company ‘D’;

(D) Therefore, Company ‘A’ holds, indirectly, 4% of Company ‘D’.

23.6 For the matter of this Paragraph and Paragraphs 14.1 (G) (6), (7), (8), (8a), (9) and 21.4, if a certain body (hereinafter: “the Controlling Body”) controls another body that has holdings, directly or indirectly, in the Licensee (hereinafter: “the Controlled Body”), the Controlling Body, and also any other body controlled by the Controlling Body, will be attributed with the rate of holdings in the Licensee that the Controlled Body has, directly or indirectly; according to the following examples:

A. Direct holdings:

(1) ‘A’ holds 50% in Company ‘B’, and controls it;

(2) Company ‘B’ holds 50% in Company ‘C’, and controls it;

(3) Company ‘C’ holds 10% in the Licensee and does not control it;

(4) Therefore, notwithstanding that ‘A’s’ holdings in the Licensee in accordance with the instructions of Paragraph 5.6 are 2.5%, ‘A’ and also any body controlled by ‘A’ will be deemed as an Interested Party holding 10% in the Licensee.

B. Indirect holdings:

(1) ‘A’ holds 50% of Company ‘B’ and controls it;

(2) Company ‘B’ holds 40% of Company ‘C’ and controls it;

(3) Company ‘C’ holds 40% of Company ‘D’ and does not control it;

(4) Company ‘D’ holds 40% of the Licensee and does not control it;

(5) Therefore, ‘A’ and any body controlled by ‘A’ will be regarded as having a holding in the Licensee at the rate of holdings of Company ‘C’ in the Licensee, which is holdings of 16% (according to the method set out in Paragraph 23.5 for the calculation of the rate of indirect holdings in the absence of control), and in this manner, ‘A’ and any body controlled by ‘A’ is an Interested Party in the Licensee.

23.7 If a certain body has indirect holding in the Licensee, through two or more Interested Parties, then for the purpose of its definition as an Interested Party, and for the purpose of determining the rate of holding with regard to this Paragraph, the greatest indirect rate of holding will be taken into account, and also any rate of holding that derives from the chain of holdings through which the said holding body is attributed with the holdings of corporations controlled by it in accordance with the provisions of Paragraph 23.6;  the rates of holdings that derive from two or more chains that will be taken into account as stated above, will be cumulative for the purpose of calculating the rate of holdings.

23.8 The Minister may, in response to a written request, permit an Interested Party in the Licensee to hold, either directly or indirectly, five percent (5%) or more in any of the Means of Control of a Competing MRT Operator, if the Minister is satisfied that this will not harm competition in the MRT field; ⁶⁷the Minister may condition the granting of the said permit on a condition that the Interested Party in the Licensee or competing MRT Operator is an Interested Party merely by virtue of the provisions of Article 23.6 .

⁶⁷ Amendment No. 10

24.1 Prohibition of Conflict of interests

The Licensee, any body in which the Licensee is an Interested Party, an Office Holder in the Licensee or an Interested Party in the company holding the License or an Office Holder in an Interested Party therein, will not be party to any agreement, arrangement or understanding with a Competing MRT Operator, or an Interested Party or an Office Holder in it, or an Office Holder in an Interested Party in a Competing MRT Operator, or any other body in which a Competing MRT Operator is an Interested Party, which are intended to or might reduce or harm competition in anything that pertains to MRT Services, MRT Terminal Equipment or any other Telecommunications Services.

24.2⁶⁸ Without derogating from the aforementioned in Article 24.1, the Licensee may reach a Cooperation Agreement as set forth in Article 19.1B.

⁶⁸Amendment No. 83

Chapter D: Establishment of the MRT System and its Operation

Section A: Establishment of the System

25. Definition

In this part:

“Milestones”- Stages in the establishment of the MRT System, according to the timetable specified in the Engineering Plan - Appendix B to the License.

26. Establishment according to the Engineering Plan

26.1 In all matters pertaining to the establishment of the MRT System (in this Paragraph: “the System”) and its operation, including the technical quality of its various components, the structure of the System and manner of its establishment, the Licensee will fulfill what is set out in the Engineering Plan - Appendix B of the Second Annex to the License, in accordance with the instructions in the Annexes to this License; in case of contradiction between the provisions of the Engineering Plan and the provisions of the License and the Annexes to the License, the License provisions shall override the provisions of the Annexes to the License, and the provisions of the First Annex shall override the provisions of the Second Annex to the License.

26.2 The Licensee will follow all the specifications of the Ministry of Communications and the standards related to the System, which were set out by standardization organizations in Israel and abroad as well as by other international organizations, both in the field of telecommunications and wireless and in any other field related to the establishment and operation of the System.

26A⁶⁹ Operation Approval

26A.1 The Licensee shall contact the Director General in writing for the receipt of his approval to commence the provision of 4th Generation services (hereinafter – "Operation Approval").

The Licensee may commence the provision of 4th Generation services only after receiving Operation Approval from the Director General.

26B⁷⁰ Obligation to Provide 4^th Generation Service

26B.1 If the License has not begun providing 4^th Generation Services within 12 months from the determining date, as stated in Article 2.1(b)(2)(a) to Appendix E, the frequencies allocation that it received for the provision of this service shall expire, and the license fees paid due to the award of the 4^th Generation Tender shall not be returned.

The expiration of the frequencies allocation as stated shall be considered a change of the Cooperation Agreement or change of the Usage Agreement, as applicable.

⁶⁹Amendment No. 83

⁷⁰Amendment No. 83

27. Implementation Stages and Timetable

27.1 The rate of establishment of the MRT System, the milestones for its establishment and the date of the commencement of service provision in the various regions of the State, will be in accordance with the timetable set out in the Engineering Plan - Appendix B of the Second Annex to the License.

27.2 The Licensee may not deviate from the timetable unless permitted to do so by the Director, provided the Licensee requested the Director in writing to receive the latter’s permission immediately after the Licensee became aware that there are difficulties preventing it from complying with the original timetable; delay in signing agreements with a third party or in receiving a permit from the planning and construction authorities, will be deemed reasonable causes for receiving the Director’s permission to deviate from the timetable, only if the Director has been satisfied that the Licensee has taken every reasonable step in the prevailing circumstances, in order to reach an agreement with a third party or to receive permit from the planning and construction authorities.

27.3 The Director may approve the Licensee’s request to deviate from the timetable, wholly or partly, and to make his approval contingent on certain conditions; the Director may authorize a deviation with respect to a certain milestone, provided that the Licensee will undertake to make up the delay in the planned rate of establishment within the next milestone.

28. Change of Plans during the Establishment

28.1 A Licensee may not deviate from the Engineering Plan unless permitted to do so by the Director according to the provisions of this Paragraph; however, locating a Cellular Radio Base at a site which is different from the site specified in the Engineering Plan will not be deemed as deviation if done within the Search Area; in this Paragraph, “Search Area” means an area defined in the Engineering Plan, at which the establishment of a Cellular Radio Base was planned, at a specific site in the area, and regarding which it was determined in the Engineering Plan that there might be a need to locate the base at another site in that area.

28.2 Should the Licensee realize, during the establishment of the MRT System, that there is a need to deviate from the Engineering Plan, the Licensee will approach the Director in writing in order to receive the latter’s approval to the change in the plan; in its approach, the Licensee will specify in detail the substance and nature of the requested change and the reasons for it; the Licensee will append to the request the revised plan that it proposes.

28.3 The Director may reject the request or approve it, wholly or partly. The Director also may make his approval contingent on certain conditions, as long as such conditions are necessary in order to maintain the quality of the System and its performance standard. The Director will decide on the request and advise the Licensee of his decision, all within a reasonable period of time.

29. Use of Infrastructures and their Construction

29.1 The Licensee may, for the purpose of establishment of the MRT System and its operation, and subject to any law, establish, maintain and operate physical or wireless transmission links, provided the said transmission links will serve only for the following:

(A) Connection between the Cellular Radio Bases that comprise part of the Licensee’s MRT System;

(B) Connection between the Licensee’s Cellular Radio Bases and its MRT Exchanges;

(C) Connection between the MRT Exchanges themselves;

(D)⁷¹ Connection between a component of the MRT system solely owned by the Licensee and a mutual component of the MRT system.

29.2 For the purpose of connection as specified in Paragraph 29.1, the Licensee also may make use of physical or wireless transmission links of the Bezeq Corporation or of another Licensee or franchise holder who was lawfully authorized to provide infrastructure services as aforesaid.

29.3 In order to remove all doubt, it is hereby made clear that the use of transmission links established by the Licensee is only for the purpose of operating an MRT System as set out in Paragraph 29.1, unless permitted by the Minister, by License, to make additional use of the same, and in accordance with the terms stipulated by the Minister.

29.4 The Minister will consider providing the Licensee with a permit to establish, by itself or by means of another party on its behalf, transmission links for connecting between the Licensee’s MRT exchanges and the Telecommunication Networks of other General License Holders, if he or she finds that one of the following has transpired:

(A) The Bezeq Corporation and other domestic operators have unreasonably delayed the installation of these facilities;

(B) The Bezeq Corporation and other domestic operators have set out unreasonable or discriminatory conditions for the installation of these facilities;

(C) The Minister is of the opinion that the interest in promoting competition in Telecommunications Services obliges him to do so.

30. Connection to other Telecommunications Systems

30.1 ⁷² The Licensee shall act in order to effect the Interconnection of the Network with any other Public Telecommunications Network operating in the area in which the law, jurisdiction and administration of the State of Israel apply (including settlements, military sites and military installations in Judea, Samaria and the Gaza Strip), and including  to any Wireline Public Telecommunications Network, International Telecommunications System and the MRT System of another MRT operator.

⁷¹Amendment No. 83

⁷²Amendment No. 14

30.2 The Interconnection between the Network and the Public Telecommunications Network of another licensee shall be effected in such a way as to enable the following:

(a) Transfer of telecommunications messages between Terminal Equipment connected to the Network and Terminal Equipment connected to the other Public Telecommunications Network;

(b) Proper and orderly provision of services by the Licensee to the subscribers of another licensee, and provision of services by the other licensee to subscribers of the Licensee.

30.3 Interconnection may be effected directly or indirectly, via the Public Telecommunications Network of another general licensee, provided that it allows for the provisions of clause 30.2.

30.4 In an Interconnection between the Network and a Wireline Public Telecommunications Network, the Licensee shall act to set up Interface points between the two Networks, for every type of service (infrastructure, transmission and data communications, telephony), with at least three main Transfer Switches;  unless the Director has determined otherwise based upon a written application from the Licensee; the setting up of the above Interface points shall be effected under an agreement between the Licensee and the Domestic Operator;  such an agreement shall contain, inter alia, the technical, operational and commercial particulars of the connection, and the number and location of connections.

30.5 In an Interconnection between the Network and an International Telecommunications System, the Licensee shall act in accordance with the provisions of Appendix J to the License.

30A. Rules regarding Effecting of Interconnection

The Licensee shall act to effect the Interconnection subject to all of the following:

(a) The Licensee shall ensure that the technical and operational standards of the Network match the requirements for connection to the Public Telecommunications Network of the Domestic Operators, the other MRT operators and the international operators (hereinafter: “an Other Operator”), that the operations of the Network be properly integrated with the operations of the Public Telecommunications Network of the Other Operator and that the Interconnection shall not harm the proper operation of these systems or proper service to their subscribers;

(b) The Licensee shall provide the Interconnection service on equal terms to every Other Operator and shall avoid any discrimination in effecting such Interconnection, including in respect of:

(1) The supply of infrastructure installations  and network connection services;

(2) the availability of connection facilities;

(3) methods, quality and durability of the connection;

(4) switching alterations and adjustments to installations , protocols and Network Interface points;

(5) payments for Iinterconnections;

(6) Billing and collection arrangements and transfer of information to Subscribers;

(7) commercial terms for effecting Interconnection;

(8) provision of information regarding the Network and changes therein which  relate to Interconnection;

(c) The Licensee shall make available to the Other Operator  any essential information that the Other Operator requires in order to provide  its services via the Licensee’s facilities;  such information shall be provided subject to any law regarding protection of privacy or commercial confidentiality;  where the parties do not reach an agreement as to the nature  and scope  of the essential information, the Minister shall rule on the matter;

(d) The Licensee shall provide the Other Operator with information on planned changes to its Network, which might affect  Interconnection with the Public Telecommunications Network of the Other Operator, or Interconnection between the Public Telecommunications Networks of the Other Operators; the Licensee shall supply the said information in such a manner as to allow the Other Operator to be reasonably prepared for the implementation of the said changes;

(e) For the purposes of sub-clauses (c) and (d), the Licensee may make the provision of information to the Other Operator conditional upon execution of a reasonable confidentiality agreement, intended to protect the rights of the Licensee under any law, including commercial secrets, intellectual property rights and the like, relevant to the information regarding the change in the Network that is to be delivered to the Other Operator;

(f) The conditions for Interconnection between the Network and the Public Telecommunications Network of an Other Operator shall be arranged by an agreement between the Licensee and the Other Operator;  where the parties fail to reach an agreement, the Minister shall rule on the matter;

(g)        (1) The Licensee shall allow its Subscribers to receive all of the services offered to them by the Other Operator, and may allow the subscribers of the Other Operator to receive all of the services from the Licensee, provided that receipt of such services is possible under any law.

(2) The Director may order the Licensee to allow subscribers of another licensee to receive the services given by the Licensee , provided that the receipt of such services as aforesaid is technically and legally possible.

(3) Notwithstanding the provisions of paragraph (1), the Director may, upon a written application from the Licensee, exempt the Licensee from the obligation of providing its Subscribers with the possibility of receiving services from the Other Operator for technical, economic or other justifiable reasons.

(h) The Licensee shall provide the Director with a signed copy of any agreement between the Licensee  and the Other Operator regarding Interconnection;

(i) The Licensee shall provide the Director, upon demand, with any information provided to the Other Operator pursuant to  sub-clauses (c) and (d), and a copy of any confidentiality agreement pursuant  sub-clause (e);

(j) The Licensee shall act in accordance with any other instructions that the Minister may prescribe.

30B. Payment for Traffic Completion and Interconnection

Where the Minister has not prescribed payment for Interconnection or payment deriving  from Interconnection, the Licensee may charge a reasonable and non-discriminatory sum for these.

30C. Prohibition Against Delaying Interconnection

The Minister shall give the Licensee a reasonable opportunity to make claims regarding the Minister’s intention to instruct the Licensee regarding the manner of effecting Interconnection and the scope thereof, activities, services and Accompanying Services  for effecting  Interconnection, and payment for Interconnection;  where the Minister has instructed the Licensee in respect of such matters, the Licensee shall not delay Interconnection to the Network in any manner, and shall fulfill its obligations in accordance with the instructions of the Minister, in good faith and properly, on the date prescribed for such and in full cooperation.

30D. Provision of Possibility of Use

30D.1 The Minister may instruct the Licensee regarding the provision of the possibility of use of its Telecommunications Installation  in accordance with his powers under section 5 of the Law.

30D.2 The Licensee shall allow another licensee, in accordance with the instructions of the Minister, to provide Value Added Services via the Network;  the Licensee shall ensure reasonable and equal conditions for any other licensee, in respect of the supply of Value Added Services by the other licensee  to the Licensee’s subscribers, including in respect of the matters set out in clause 30A, mutatis mutandis.

30D.3 For the purpose of provision of the possibility of Use, the provisions of clauses 30A through 30C shall apply, mutatis mutandis.

30E. Infrastructure Services to an Affiliated Company

30E.1 The Licensee shall avoid giving preference to a licensee that is an Affiliated Company over any other licensee, in the provision of Infrastructure Services, in terms of either payment or service, in terms of the conditions or availability of the service, or in any other manner.

30E.2     (a) Upon the written request of the Licensee, the Director may permit limitations for the Licensee on the provisions of clause 30E.1 in respect of another licensee or broadcast licensee  which is an Affiliated Company, provided that the following conditions apply:

(1) such other licensee or Franchisee is not a Substantial Operator;

(2) the Director is of the opinion that the giving of such approval shall not substantially harm competition in the field of telecommunications

(b) Limitations as aforesaid in sub-clause (a) might permit the Licensee to provide the Affiliated Company with Use of its Telecommunications Installations  under preferred conditions and may be limited by time or any other condition.

(c) In considering the permit under this clause, the Director shall take into account the existence of a valid agreement, executed prior to Amendment No. 14 of this License, between the Licensee and an Affiliated Company, as aforesaid, inter alia regarding limitation of the permit by time or other conditions.

30E.3 In this clause, “Affiliated Company”, “Subsidiary” and “Substantial Operator” – as defined in the Telecommunications Regulations,  (Proceedings and Conditions for Receipt of a General License for the Provision of Domestic Wireline Telecommunications Services) 5760-2000.

30F. Numbering Plan

30F.1 The Licensee shall act in accordance with the Numbering Plan, and in accordance with the instructions of the Director regarding the activation and implementation of the Numbering Plan.

30F.2 Should the Director give instructions regarding number portability such that every subscriber of another MRT licensee shall be able to become a subscriber of the Licensee or receive services from the Licensee without altering his number, and vice versa, the Licensee shall integrate facilities in its Public Telecommunications Network that will allow for the implementation of such feature, on the date and in the manner to be prescribed by the Director.

31. Report on Establishment Work

31.1 The Licensee will submit to the Director, during the entire establishment period of the MRT System, quarterly reports which will comprise the establishment work that was carried out during the period covered by each report, according to the Milestones and timetables in the Engineering Plan; for the matter of this Paragraph, “the Establishment Period” is the period of forty eight (48) months from the date of License award or until the date of completion of the Establishment of the System to its full deployment according to the Engineering Plan - the earlier of the two. ⁷³During the erection period, this report shall be integrated into the outline engineering report, as set forth in Article 104.1(e).

31.2 The reports will include comparison of the actual implementation of the plans against planning, as of the date of each report, and explanations of any deviation or change in the implementation as compared to the design.

31.3 Each report will be submitted in three (3) copies in a format as instructed by the Director, bearing a date and signed by the Licensee or whoever was authorized by it particularly for this purpose.

31.4 The Director may require the Licensee to prepare special reports as well as redraft any report that was submitted to him, or complete it.

32. Submission of Information and Documents

32.1 The Licensee will submit to the Director, on his request, any information and document on the implementation of the establishment work on the MRT System, at the date and in the format and manner as instructed by the Director.

32.2 For the matter of this Paragraph and Paragraph 33, “a document” includes any information stored in a computer or in an information database.

33. Supervision of Establishment Work

33.1 The Director may supervise personally, or through another person acting on his behalf, the actions taken by the Licensee to carry out the establishment work. In order to carry out the supervision, the Director may enter, at any reasonable time, the work sites, facilities of the MRT System and the Licensee’s offices, in order to conduct measurement and tests and to examine any plan or document pertaining to the implementation of the establishment work.

33.2 The Licensee will cooperate with the Director in everything that pertains to the conducting of supervision of the establishment work, and without derogating from the generality of the above, will allow him to enter the work site and its installations, allow examination of any document, plan and specifications and provide him with any required information that the Director may request.

34. Repair of Faults and Defects

34.1 The Director may advise the Licensee in writing of faults, defects and deviations that he found in the establishment work of the MRT System, on the basis of reports submitted by the Licensee, documents and information that it provided the Director, or on the basis of measurement and tests that he conducted.

⁷³Amendment No. 71

34.2 Should the Licensee receive notification as set out in Paragraph 34.1, it will notify the Director, within fourteen (14) days from the date on which it was notified of the above, of its response to the notifications and the actions that it has taken or is about to take in order to remedy the faults, defects or deviations.

35. Safety and Security Precautions and Prevention of Hazards

35.1 The Licensee will carry out the establishment works while taking adequate safety precautions in order to prevent accidents to people and damage to property. It will refrain from causing disturbances and hazards to the public in the work area, and if required to conduct excavation at the site, it will make every effort to prevent damages to underground Systems, including Telecommunication Networks. For this purpose, it will ensure that it obtains every permit required by any law, including permit for excavation works according to Section 53B of the Law.

35.2 On completion of the establishment work, the Licensee will make sure that the work site is clean and restored to its previous condition.

36. Cancelled.

37. Crossing Electricity Lines and Telecommunication Systems

Where electricity lines or electric installations exist before the installation of the MRT System, the Licensee will be subject to the obligations according to the Telecommunication and Electricity Regulations (Proximity of and Crossing Between Telecommunication Lines and Electricity Lines), 1986.

38. Discovery of Antiquities and Preservation of Sites

38.1 Antiquities as interpreted by the Antiquities Law, 1978, which will be uncovered at a site where establishment work is conducted, are State assets, and the Licensee will take adequate precautions in order to avoid causing damage to them.

38.2 The Licensee will advise the Director of the Antiquities Authority of the discovery of an antiquity within fifteen (15) days of the date of discovery of the antiquity, and will comply with all instructions by the Authority Director in all matters pertaining to the manner of handling the antiquity.

38.3 During the establishment work, the Licensee will refrain, as far as possible, from causing damage to sites of historic or national value, tourist sites and landscape.

38.4 The Licensee will refrain, as far as possible, from causing damage to structures and trees in the sites where the establishment works are conducted.

39. Powers pertaining to Real Estate

39.1 The Minister may, upon request from the Licensee, grant it the powers set out in Chapter F of the Law, wholly or partly, subject to the provisions of Paragraph 39.2.

39.2 The Licensee will specify in its request the sites in which it requires powers as aforesaid, the scope of the required powers and the reasons for the request, including actions it has taken to find alternative sites without the need of powers in accordance with Chapter F of the Law.

39.3 If the Minister is satisfied that the Licensee should be granted powers in accordance with Chapter F of the Law, the Minister will publish his decision in “Reshumot”, the Official Gazette.

Section B: Equipment Tests and Installation Approvals

40. Compatibility Tests

The Director may determine equipment items that are not to be installed in the MRT System before undergoing compatibility tests; for the matter of this paragraph, “Compatibility” - as implied by the provisions of Paragraph 41; should the Director decide as aforesaid, the items will not be installed before a compatibility test is conducted on them.

41. Responsibility for Compatibility

The Licensee is responsible for ensuring that equipment installed in the MRT System meets at least the condition of technical compatibility to the properties specified in the manufacturer’s specifications relevant to the same equipment item, that were appended to the Engineering Plan.

42. Performance Testing Program, and its Approval

42.1 The Licensee will provide the Director, no later than 30 days before notifying of its end of establishment according to Paragraph 43, with an up-to-date, detailed testing program, for conducting the performance tests, related to the part of the MRT System that it wishes to operate (hereinafter: “Detailed Testing Program”).

42.2 The Licensee will present to the Director the Detailed Testing Program; the Director may require the Licensee, within fifteen (15) days from the said presentation, to change the Detailed Testing Program or to complete it, if he deems it necessary for a full and accurate implementation of the performance testing, and the Licensee will carry out the tests as required by the Director.

43. Notice of Establishment Completion

When the Licensee completes the establishment of an exchange or a Cellular Radio Base in any area in a manner that allows to start providing MRT Services through it, the Licensee will advise the Director of the same in writing, in the format as instructed by the Director, complete with the results of the detailed tests that indicate the success of the establishment and operation.

44. Fitness and Operation Conditions

44.1 The Licensee must meet the following requirements and conditions within six (6) months from the date of License award, prior to the operation of the system and the provision of service to subscribers in return for payment:

(A) Agreement with an equipment manufacturer - the Licensee has valid agreements with a manufacturer of MRT System equipment and MRT Terminal Equipment, including:

(1) A know-how agreement which ensures that all know-how required for the establishment, operation and maintenance of the equipment and system will be at its disposal;

(2) An agreement providing for supply of spare parts for the System equipment for a period of at least seven (7) years;

(3) An agreement providing for technical support and software upgrades in the System components for a period of at least seven (7) years;

(4) An agreement ensuring the supply of technical literature and full documentation of the System equipment, including upgrades;

(B) Workshop and test equipment - the Licensee is operating an authorized workshop, or has a valid agreement with an authorized workshop, for conducting tests and repairs of the MRT Systems equipment; the workshop will include professional testing equipment for conducting the tests and repairs, including mobile testing equipment;

(C) Spare parts - the Licensee maintains and runs a spare part warehouse for the MRT Systems equipment according to the recommendations of the equipment manufacturers;

(D) Maintenance System - the Licensee maintains by itself or through another an efficient maintenance System, including maintenance personnel, vehicles and means of communication, which ensures an orderly on-going operation of the System and allows taking care of any fault within the response time required in this License, and also allows - in any event of a serious fault in the MRT System, causing radio interference or massive disconnection of subscribers, or constituting a safety hazard - to repair the fault within four (4) hours;

(E) Control System - the Licensee itself maintains and operates a System of remote control that allows it to gauge System performances and the load on its components, including interconnections with other Telecommunication Networks, and make sure that these operate properly;

(F) Means of communication - in the exchanges at the operations centers and in the service and maintenance centers, means of communication were installed, such as a wireless set, a telephone or a mobile telephone.

(G) Security - the Licensee has met the requirements of the Security System, in accordance with the provisions of Paragraph 66.2, to an operation standard that satisfies the Director.

44.2 The Licensee will provide the Director, within seven (7) days before the first activation of the System, with certificates and documents indicating that it meets the requirements and terms set out in Paragraph 44.1; if the Director does not respond within five (5) working days from the date of delivery of the said documents, the Licensee will activate the MRT System and connect subscribers to it; if the Director instructs the Licensee, according to the findings in the documents, to change or repair the System, the Licensee will carry out the required change or repair and provide the Director with a certificate of implementation, and if the Director does not respond within three (3) working days, the Licensee may activate the System as aforesaid.

Section C: Use of Frequencies

45. Frequency Allocation

45.1 The Licensee may operate the Cellular Radio Bases of the MRT System while using the frequency bands as specified below:

(A) Frequency bands that were exclusively allocated for the use of the Licensee in the territory of the State of Israel:

902.2 MHz through to 910.2 MHz, and 947.2 MHz through to 955.2 MHz;

(B) Frequency bands that were not exclusively allocated for the use of the Licensee, according to rules and limitations that will be determined by the Director:

910.2 MHz through to 912.2 MHz, and 955.2 MHz through to 957.2 MHz

⁷⁴(B1) Frequency bands that have been non-exclusively been allocated for its use as of February 25, 2010, in accordance with the rules and limitations that will be set by the Director: 912.6 MHz to 915 MHz and 957.6 MHz to 960 MHz75.

⁷⁶(C) Frequency bands allocated exclusively for the Licensee’s use as specified below :

(1) From 1 February 2002 to 1 January 2004, the following bands shall be allocated:

1732 to 1738.4 MHz, and the matching domain 1827 to 1833.4MHz;

1937 to 1942 MHz, and the matching domain 2127 to 2132 MHz;

(2) As of 1 January 2004, the following bands shall be allocated:

1730 to 1740 MHz and the matching domain 1825 to 1835 MHz;

1940 to 1950 MHz and the matching domain 2130 to 2140 MHz;

(3) As of 1 January 2005, the frequency domain 1910 to 1915 MHz shall be allocated.

(4) Notwithstanding the aforesaid, if the Licensee requests to postpone the date of the beginning of use of the bands set out in sub-clauses (1) to (3) or part of them, to a later date, the Director may suspend the band allocation until a date to be decided upon.

45.2 The Licensee may operate the Cellular Radio Bases of the MRT System while using additional frequency bands, if they are allocated by the Director, in accordance with the rules and limitations which will be determined.

45.3 The Licensee may select a frequency band narrower than the one stated above, within the framework of the frequency bands specified in Paragraphs 45.1 and 45.2.

⁷⁴Amendment No. 68

⁷⁵These frequency bands have been used by the Licensee since 1999.

⁷⁶Amendment No. 14

45.4 The Director may, after the elapse of four (4) years from the date of the License award, reduce without compensation the frequency range in which the Licensee is permitted to operate its Cellular Radio Bases as specified above in Paragraph 45.1, if he or she  realizes that a said reduction will bring about a better utilization of the frequency spectrum in Israel, considering the extent of frequency utilization by the Licensee, the number of its subscribers and the average traffic per subscriber, in comparison with the number of Subscribers and the average traffic per Subscriber of other MRT Systems. The Director will not decide to reduce the range of frequencies as aforesaid unless he has given the Licensee opportunity to voice its arguments.

45.5 The Director may limit the Licensee to operating certain frequencies in limited geographic areas and/or operating part of the frequencies in parallel to additional service providers and in coordination with them, in accordance with the Director’s instructions.

46. Constraint on the Use of Frequencies

46.1 The Licensee will make use of the frequencies allocated to it as stated in Paragraph 45 for the sole purpose of providing services in accordance with this License.

46.2 ⁷⁷Without derogating from the aforementioned in Articles 45 and 46.1, and in accordance with the terms of the allocation provided to the other MRT licensee, the Licensee may make use of the frequencies allocated to the other MRT licensee in addition to the aforementioned in Article 45, provided that the frequencies serve as cellular radio centers of the Licensee through the cellular radio infrastructure licensee that provides it with its services.

47. Safety in Using Frequencies, and the Prevention of Interference

47.1 The Licensee will establish the MRT System and operate it in a manner that will ensure that each of its components does not emit radiation prohibited by the Pharmaceutical Regulations (Radioactive Elements and Their Products), 1980, and will do everything necessary, if required, to receive a permit in accordance with the said regulations; in this matter, the Licensee will act, inter alia, as follows:

a) The Licensee will coordinate its activity with the official in charge of the environmental radiation, in the Ministry of the Environment (hereinafter: “the Official”), and will carry out his or her instructions;

b) The Licensee will submit to the Official, before the construction of each site, a risk estimate report; the site will only be constructed after it receives the approval of the Official; after operating the site, the Licensee will carry out measurements in accordance with the Official’s instructions; a site which will not meet the Official’s requirements will not be operated;

c) The Licensee will bear its relative share of the costs of preparation of a Country-wide MRT Installation Master Plan, in accordance with the provisions of the Law of Planning and Construction, 1965, jointly with the other MRT Operators.

⁷⁷Amendment No. 83

47.2 The Licensee will coordinate the use of frequencies with the Director, who will base his guidelines, inter alia, on the national emergency plan or a special situation plan in the home front.

47.3 The Licensee will submit to the Director, at least 60 days before the operation of the Cellular Radio Bases, a detailed up-to-date plan of operation of the Cellular Radio Bases, of the radio links and of the expected use of frequencies; the plan will include, inter alia, the transmission and reception frequencies, gain and height of the antennas and transmission outputs; the Licensee will advise the Director of the actual implementation of the plan within seven (7) days from the date of operation; the Licensee will submit to the Director, during the month of January each year, an up-to-date report on the operation and use as aforesaid; the Director may require the Licensee, for reasons that will be recorded, to submit to him/her, within five (5) days an up-to-date report on the operation of Cellular Radio Bases, radio links and use of frequencies, as aforesaid.

47.4 The Licensee will establish the MRT System and operate it in a manner that will prevent interference with other telecommunication and wireless Systems that are operating lawfully; without derogating from the generality of the aforesaid, the Licensee will act in this matter, inter alia, as follows:

a) Before operating any Cellular Radio Base, the Licensee will conduct tests and measurements in order to avoid electromagnetic interference;

b) In the event of discovering that electromagnetic interference is expected, or if electromagnetic interference is discovered during operation, the Licensee will act, immediately and no later than 24 hours from discovering the above, to coordinate a solution that will prevent this interference and prevent its recurrence; failing to find a solution, the Licensee will apply in writing to the Director or his or her appointee in order to find a reasonable solution for the problem;

c) The Licensee will cease the operation of any MRT System component that causes interference to another wireless System that operates lawfully, and will not reactivate it without the Director’s permission; the Director may require from any of the parties - from the Licensee as well as from the owner of another wireless system -  to make changes in the operation of the equipment or the use of  frequencies, or to cease broadcasting on specific frequencies, in the entire country or in a particular region;

d) The Licensee will comply with all of the Director’s requirements regarding the handling of interference and coordination with other operators, in Israel, in the territories of the Palestinian Authority and in neighboring countries, will submit to the Director any information required for this purpose, will carry out electromagnetic measurements in accordance with the Director’s requirements, and will refrain from using frequencies that will be defined in sites determined by the Director; the Licensee will operate within the limits instructed by the Director regarding transmission in certain frequencies in certain sites, and the imposing of certain constraints regarding the height, type and direction of antennas; the coordination as aforesaid will be carried out by the Licensee, on its expense and under its responsibility, both in accordance with special instructions by the Director and in accordance with the instructions of international conventions and agreements to which Israel is a signatory.

47.5 The award of this License, as well as the approval of the Engineering Plan, shall not be deemed as providing protection against harmonies from other radiating bodies, whether operating lawfully or unlawfully, or spurious radiations from other radiating bodies, whether operating lawfully or unlawfully, or protection against other radiating bodies operating in frequency ranges identical to the frequency ranges that were allocated to the Licensee outside the territory of the State or in a territory over which the State has no control, however, the Director will make a reasonable effort to find a suitable solution for the required protection.

48. ⁷⁸Preparation to ensure the functional continuity during an emergency

48.1 The Licensee will appoint a functionary (including a first deputy and a second deputy) that will be responsible during an emergency for maintaining contact with the Ministry; The Licensee shall provide the Director, once a year, on January 1^st, the details of the functionary and his deputies, as well as their contact details.

48.2 The Licensee will be prepared to ensure the functional continuity during an emergency, as set forth in Appendix D- " "Preparation to ensure the functional continuity during an emergency".

⁷⁸Amendment No. 82

Section D: Tests and Maintenance⁷⁹

49. Definitions

In this part:

“Periodic Test”- Test of the network or any part of it, that is conducted in accordance with the License provisions, at fixed intervals and at least annually;

“Special Test” - Test of the network or any part of it, conducted due to a maintenance or repair activity, following an electromagnetic interference, a malfunction, complaint review technological change, modification of the Engineering  plan; etc.

“Routine Test”- Testing of the network or any part of it, conducted on a regular  basis.

50. Execution of Tests

50.1 The licensee shall carry out periodic tests of the MRT system, and shall submit the results of the test upon the director’s request within 30 days from the day of the request.

50.2 The licensee shall establish and operate an inspection system for constant monitoring of the network’s performance and its intactness and shall conduct on a regular basis routine tests of the network or any part of it, as needed.

50.3 The licensee shall conduct routine tests regarding the quality of service as detailed in Annex E, and the relevent standards of the ITU-T, and shall provide the results of the tests upon the director’s request, within 30 days from the day of the request.

50.4 The director may instruct the licensee to conduct a special test; the licensee shall perform the said test in a manner and at a time to be advised by the director and shall submit the results to the director.

50.5 The director or anyone else authorized on his or her behalf shall be allowed to perform the test themselves, if in their opinion it is required, the licensee shall allow the director or anyone else authorized on his or her behalf, after prior coordination, access to installations and equipment and shall put at their disposal their testing equipment and professional manpower employed by the licensee.

51. Test, Fault and Maintenance Log

51.1 The licensee shall maintain a test, fault and maintenance log (hereinafter – “maintenance log”), in which details of the faults and tests of the network shall be recorded.

⁷⁹Amendment No. 41

51.2 The licensee shall keep the maintenance log, shall allow the director or anyone authorized on his or her behalf to see the log at any time, to check it, copy it in any manner and to pass it to the director upon his demand.

52. Repair of Faults and Defects

52.1 The director may, after giving the licensee sufficent opportunity under the circumstances to present its arguments, notify the licensee in writing of faults and defects that he found and that harm the grade of service for subscribers, the level of survivability and back up of the network, damage to the level of security or interference with the other systems that operate properly, based on tracking the network’s performance, including through subscriber complaints, tests he carried out or based on test reports, documents and information provided to him by the licensee.

52.2 The director may instruct the licensee of the dates that the defects and malfunctions must be repaired.

52.3 If the licensee receives such notification, it must notify the director within the time set forth in the director’s notice of the repair of the defects and malfunctions, detailed as per the director’s request.

53. deleted

54. deleted

Chapter E - Provision of MRT Services to Subscribers

Section A - Agreement with Subscribers

⁸⁰55. The subscriber agreement

55.1 The licensee shall prepare a format for a subscriber agreement that it intends to offer its subscribers, and shall submit it to the director upon his demand.

55.2 The terms of the subscriber agreement shall not contradict, explicitly or implicitly the provisions of any law or the license; the aforesaid is not meant to prevent changes to the provisions of the subscriber agreement, that benefit the subscriber as compared to the provisions of the law or the license.

55.3 The subscriber agreement shall be in writing and shall be in a clear and easy manner to read and understand, and shall state clearly any condition or restriction regarding the subscriber’s right to terminate the subscriber agreement or regarding the licensee’s duties towards the subscriber; any stipulation in the subscriber agreement shall be stated clearly and not only by reference.

For this article- “writing”-including an electronic document that can be saved and reconstructed by the subscriber.

55.4 The subscriber agreement shall clearly include, among other things, the following:

a) The first part of the engagement agreement must clearly and precisely specify the principal details of the tariffs and services plan pursuant to the engagement agreement (hereinafter – “the Plan Basics”). If the engagement agreement includes one type of services, the Licensee shall be allowed to specify the Plan Basics on a maximum of two pages. If the agreement includes a number of types of services (fixed-line telephone, mobile telephone, international services, internet, etc.), then, subject to that stated above, the Licensee shall be able to add one page for each additional type of service. The Plan Basics document must be printed, without any handwritten alterations or additions, apart from that stated in clause (1), and all as specified hereunder:⁸¹

(1) The name of the Licensee or its logo, the details of the Licensee's representative that executed the agreement, the date and mode of execution of the transaction,⁸² the subscriber's details including his name, I.D. number, type of subscriber,⁸³ address, e-mail address,⁸⁴ telephone number that the agreement pertains to, an additional telephone number of the subscriber to where notices regarding the usage amount of a services⁸⁵ plan as set forth in article 75D and regarding disconnection of a Dormant Subscriber, as stated in clause 72.a.,⁸⁶ will be sent from the Licensee⁸⁷ and a description of Goods,⁸⁸ if included in the agreement; notwithstanding the beginning of section (a) the aforementioned details in that sub-section , except for the Licensee's name or logo, can be handwritten;

⁸⁰Amendment No. 41-shall become effective no later than 30.4.2007

⁸¹Amendment No. 87

⁸²A transaction at a service station of the Licensee or through peddling, as this term is defined in the Consumer Protection Law, 5741 – 1981, or a transaction via telephone conversation or a transaction via the internet. Amendment No. 87.

⁸³Business Subscriber or Split Business Subscriber or Non-Business Subscriber. Amendment No. 87

⁸⁴Amendment No. 87

⁸⁵Amendment No. 87

(2) The commitment period, if one exists, and the termination date. For this sub-section, "commitment"-as defined in section 56.1A;

(3) All of the tariffs according to which the Licensee bills the subscriber for the services that it asked to receive when executing the engagement, including video call services and multimedia messages, and the rate of any fixed payment or one-time payment, including a fixed payment or one-time payment that is other than within the scope of a telecommunications service, including connection fees, as this term is defined in clause 74.1(a), SIM card fees, as this term is defined in clause 74.1(a1) and plan switching fees.

Insofar as the Licensee is not charging for connection fees or SIM card fees or plan switching fees, this must be stated accordingly.

Insofar as the engagement agreement includes international services, such as a minutes package or plan for calls abroad, the Licensee must specify its rates, the quota of minutes allotted in it, the three-digit international access code that must be dialed, the countries included in it, the type of targets in those countries (fixed-line, mobile) and the tariff for exceeding the quota in the plan.⁸⁹

(3a)⁹⁰ For cellular internet browsing packages as defined in section 75D-the unit tariff for the service not included in the package shall be displayed next to the chart in the same values as those in the chart;

(3b) The quota of service units set by the Licensee for the service or for the bundle of services (“Quota of Units”), and the maximum duration of a call, if any.

(3c) If the Licensee provides a service to subscribers that is given at a discount or for free for a defined period (“Benefit”), and subsequently, at full price, or if a credit is given to subscribers for terminal equipment that subscribers delivered to the Licensee, then the Licensee must specify the following in the Plan Basics:

(1) the monthly sum of the Benefit/credit;

(2) the duration of the period that the Benefit/credit is given;

(3) the type of date from which the period of the Benefit/credit shall begin to be counted;⁹¹

⁸⁶Amendment No. 87

⁸⁷Amendment No. 87

⁸⁸Amendment No. 87

⁸⁹Amendment No. 87

⁹⁰Amendment No. 87

⁹¹For example: as of the date the plan comes into effect, as of the date that the subscriber activates the SIMcard.

(4) the tariff for the service upon the expiration of the Benefit.

That stated above shall also apply when at issue is a Benefit being given within the scope of the tariff plan, and not necessarily for a particular service included in a plan.

(3d) If a subscriber switches from one tariff plan to another, and the Licensee issues the new Plan Basics to the subscriber, the Plan Basics must also include the effective date of the new plan.

(3e) Mode of provision of a cellular data service after the volume of the cellular data package has been fully utilized – suspension of the service or a slowdown of the speed, without any payment and without additional charge, until the end of the billing period or an allotment of additional paid packages, at the subscriber’s choice on the execution date of the engagement. If the Licensee chose to slow down the speed, the maximum data download speed must be specified in the Plan Basics.

(3f) Mode of provision of a voice and message service after the monthly Quota of Units for these services has been fully utilized – suspension of service until the end of the billing period or continuing to provide the services and charging the subscriber according to tariffs set by the Licensee in the Plan.⁹²

(4) A description of all Goods purchased or rented at the time of execution of the engagement and their inclusive price and, insofar as payment in installments for the Goods was agreed between the subscriber and the Licensee – the sum of each payment. Insofar as the Goods were given as a gift, this must be expressly stated;⁹³

(5) Information about the cancellation of any Benefit due to a switch to another tariff plan;⁹⁴

(6) The calculation method of the amount that the subscriber will be required to pay for breaching the agreement as defined in article 56.1A;

(7) For a business subscriber-information regarding the increase of tariffs during the commitment period, if such a possibility exists as part of the subscriber agreement conditions, including the date and amount of the tariff increase;

(8) Information regarding the balance of payment ⁹⁵ for equipment purchased from the Licensee, in a previous agreement;

(9) The Licensee's commitment to pay to the subscriber of another MRT licensee that became its subscriber, the payment that the said subscriber will be required to pay to the other MRT licensee for breach of this commitment to the other MRT operator and the distribution manner of said payment.

For this matter-"commitment"-as defined in article 56.1A;

⁹²Amendment No. 87

⁹³Amendment No. 87

⁹⁴Amendment No. 87

⁹⁵Amendment No. 87

(10) The subscriber’s declaration that it read the Plan Basics document and received it at the time of execution of the agreement. The details of the representative on behalf of the Licensee who executed the engagement must be specified in the body of the declaration and the subscriber’s original signature must appear at the end of the Plan Basics.⁹⁶

(11)  ⁹⁷With regard to sub-section (a) (1) to (10)- "subscriber"- whoever has signed a subscriber agreement with a Licensee for the receipt of MRT services for no more than twenty five telephone numbers except for Pre-Paid subscribers.

(12) A Split Business Subscriber must sign the Plan Basics.

(13) The Licensee shall not include additional information or details in the Plan Basics beyond that specified in this clause, unless at issue are data in values of NIS or NIS per unit of consumption, which could have a direct impact on the height of the subscriber’s monthly bill.

(14) The tariffs for all of the services and the payments, as specified in subclauses (3), (3b), (3c), (4) and (5) must be presented in a table with two columns – “description of the service/Benefit/credit/Goods/payment” and “tariff for the service/sum of the Benefit/credit/payment.”⁹⁸

(a1)⁹⁹   (1) a separate page, printed, upon which the subscriber will be required to mark his choice regarding the accessibility of each phone number that the agreement refers to, services, as detailed in annex E 2 (hereinafter-"service access form" or "form") ¹⁰⁰and to sign at the bottom of the form . The form shall be attached to the Plan Basics;¹⁰¹

(2). A new subscriber that did not mark its choice with regard to a particular service, whether blocked or open, in the place designated for this in the form, shall be blocked from receiving that service. A new subscriber that did not sign at the bottom of the form shall be blocked from all services appearing on the form. In this clause, “new subscriber” – a subscriber that engaged with the Licensee after 15 Iyar 5777 (May 11, 2017).¹⁰²

⁹⁶Amendment No. 87

⁹⁷Amendment No, 58

⁹⁸Amendment No. 87

⁹⁹Amendment No. 57-shall become effective on September 13, 2011

¹⁰⁰Amendment No. 58

¹⁰¹Amendment No. 87

¹⁰²Amendment No. 87

(3) A subscriber may request from the Licensee at any time, in writing or orally as a human response only,¹⁰³ to change its access¹⁰⁴ to the services detailed in the form (hereinafter in this section-"subscriber's request"). A first change shall be done free of charge. The Licensee shall execute the subscriber's request only after he has identified the subscriber. The Licensee shall retain the request, as stated, in its possession and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the submission date of the request.¹⁰⁵ The subscriber's request shall be executed within  ¹⁰⁶one working day ¹⁰⁷ from the date of receipt of the request.

(4) The Licensee shall include in the Telephone Bill following the subscriber's request a notice regarding the execution of the request and the date of the execution. The Licensee shall retain the Telephone Bill, as stated, in its possession and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the preparation date of the Bill;¹⁰⁸

(5)  ¹⁰⁹The Licensee shall include the form with the two (2) immediate Telephone Bills that will be sent after September 13, 2011, to a subscriber that is not a new subscriber.

(6)        (a)^{110 111}A subscriber that is not a new subscriber that did not submit his preferences regarding the form to the Licensee by Sept 13, 2011, shall be blocked from receiving the services detailed in section 3 of the form, within seven (7) working days from the said date;

(b)^{112 113}Notwithstanding, a subscriber who is not a new subscriber, that does not use the services set forth in section 3 of the form as of November 1, 2011 and did not relay his response to the licensee with respect to the form by December 1, 2011, the licensee may block the subscriber from receiving the said services as of December 1, 2011;

(c)^{114 115}a subscriber who is not a new subscriber, who relays his response to the licensee with respect to the form, shall be blocked or open for the receipt of the services in accordance with his request in the form, within one working day after receipt of the request;

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(d)¹¹⁶ a subscriber that relayed his preferences in the form to the Licensee and did not mark his choice and signed next to the service that appears on the form as set forth in sub-section (1), shall be blocked from receiving that service;

(e) The Licensee shall block the access to the services being provided pursuant to clause 2(e) in the service access form in relation to any existing subscriber that did not expressly choose, when completing the form, the option “open” to these services, and this, within seven (7) workdays of 15 Iyar 5777 (May 11, 2017).¹¹⁷

(6a) The Licensee shall notify the subscriber about the blocking in the first Telephone Bill after the blocking. The Licensee shall retain the Telephone Bill, as stated, in its possession and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the preparation date of the Bill.¹¹⁸

(6b) If the subscriber marked its choice on the service access form, then the Licensee must act according to the subscriber’s choice immediately after the form has been delivered to it.

(6c) A subscriber shall be required to complete a new service access form with every switch from one tariff plan to another, only if its existing form is not in the format presented in Appendix E.2.¹¹⁹

(7) The Licensee shall publish the form on its internet site within seven (7) working days from ¹²⁰September 13, 2011.

(7a) If the Director ordered an amendment to the version of the service access form, the Licensee must publish the updated service access form on its website within the timeframe specified by the Director on the signing date of the license amendment.¹²¹

(8)¹²² For the purpose of sub-section (a1)(1) until (6)-"subscriber"-except for a subscriber in a pre-paid plan. Notwithstanding the mentioned, the Licensee shall block services in accordance with a pre-paid subscriber's request, if the request was received from the telephone number that the request pertains to or the said subscriber presented to the Licensee the handset using the number that the request pertains to, or in any other manner that satisfies the Licensee.

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(9) Insofar as at issue is a Split Business Subscriber, only he shall complete and sign the service access form, and only he is allowed to amend it.¹²³

(a2)¹²⁴  The service conditions for the subscriber, including gauges of quality of service to customers and subscribers as set forth in article 2 in Annex E;

(b) The disconnection conditions of the licensee’s services or the conditions for complete disconnection;¹²⁵

(c) The service tariffs of the licensee that the subsciber joined updated to the day of the agreement, including the date and conditions for the termination of the tariff plan;

(d) The limitation regarding the amount of interest for late payment,  linkage differentials and collection expenses as set forth in article 80.3;

(e) The conditions for changing the tariff of a service that the subscriber has joined, as set forth in article 78.1;

(f) The details set forth in articles 61 and 61A regardingOmbudsman¹²⁶;

(g) A condition that states that in case of a contradiction between the provisions regarding the tariffs and the service packages that are detailed in the agreement and the provisions of the license regarding this matter, the provisions of the license shall prevail;

(h) A notice regarding the director’s authority to instruct the licensee to change the subscriber agreement, and clarification that the subscriber’s signing a subscriber agreement with the licensee constitutes agreement to said changes.¹²⁷

55.5 ¹²⁸In an agreement in the presence of the Licensee's representative and the subscriber, the Licensee shall act as follows:

(a) The Licensee’s representativemust perform a reliable identification of the Applicant pursuant to the procedure prescribed by the Licensee. The Licensee shall retain in its possession a copy of an identification certificate of the Applicant and a copy of an identification certificate of the payer of the Bill, which were issued to the Licensee’s representative at the time of execution of the engagement.¹²⁹

(a1) ¹³⁰Before signing the agreement, the representative shall present the Applicant¹³¹ with a printed copy of the subscriber agreement and shall allow him to review it;

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(b) Upon signing the agreement, the applicant and Licensee representative shall sign the originally copy of the subscriber agreement that was presented for the applicant's review. After the said signature the Licensee representative shall give the subscriber a copy of the subscriber agreement upon which the Licensee representative's and applicant's original signatures appear;

(c) After execution of the aforesaid in sub-section (a) and (b), the Licensee representative may ask the subscriber to sign an additional copy of the subscriber agreement identical to the one originally signed, by using electronic means;

(d) The Licensee shall keep a signed copy of the subscriber agreement and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the date of the engagement.¹³²

(e) If the subscriber requests to make changes to the agreement conditions, including a request to replace an existing plan with a new plan¹³³, to receive additional services, to expand a service, ¹³⁴ or to join a service package-the subscriber shall receive at the time of the change, a printed notice that bears the Licensee's name or logo, which shall specify the request submission date, the¹³⁵ details of the change executed are listed, the date they become effective and the full name of the Licensee representative and the subscriber and their original signatures. The Licensee is not permitted to make any change, as stated, including replacement of an existing plan with a new plan, without receiving the express consent of the subscriber as stated above.

The Licensee shall retain the signed notice, as stated, in its possession and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the submission date of the request.¹³⁶

55.6 cancelled¹³⁷

55.7 ¹³⁸Notwithstanding the afore-mentioned in Article 55.5, the Licensee may have a subscriber sign a subscriber agreement also by a computerized graphic signature, instead of an original signature, and for this matter the provisions of Appendix E shall apply instead of Article 55.5.

For this matter, "computerized graphic signature"-a signature that is digitally maintained as a graphic file."

¹³⁹55A Remote Sale Transaction

55A.1 In a remote sale transaction, as this term is defined in section 14.C. of the Consumer Protection Law, 5741 – 1981, which is being transacted via a telephone conversation, the Licensee shall act as follows:

(a) The Licensee shall record the telephone conversation held between the Applicant and the Licensee’s representative.

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(b) During the sale conversation, and before the Applicant expresses his consent to engage in an agreement with the Licensee, the Licensee’s representative must ask for the Applicant’s consent to send him the Plan Basics via electronic mail or SMS or facsimile, and the service access form, and must inform him that he must confirm in writing that he is accepting the terms of the engagement agreement as a precondition to it coming into effect. Insofar as the Applicant expressly states that he is not interested in receiving the said documents in one of the three said ways during the sale conversation, then the Licensee shall be released from having to send them to the Applicant when conducting the sale conversation, and these shall be sent to him, together with the rest of the provisions of the engagement terms document, on the transaction execution date. If the Applicant asked to receive the said documents via one of the ways specified above, the Licensee’s representative must send them to him in the manner requested during the sale conversation.

(c) In a service access form sent via electronic mail or SMS, every service must be computer-marked as “blocked” or as “open,” as the Applicant chose during the said telephone conversation.

(d) The electronic mail message or the SMS will ask the Applicant to confirm the execution of the transaction and the choices marked in the service access form. The Applicant must expressly confirm the terms of the transaction, without any handwritten stipulations or qualifications or changes in relation to the terms in the engagement terms document, either via return electronic mail message or return SMS, which includes his full name and ID number.

(e) If the Applicant asked to receive the Plan Basics and the service access form via facsimile, the Licensee’s representative shall send the said documents via facsimile, according to number given to the Licensee’s representative during the conversation.

The Applicant must expressly confirm the terms of the transaction, without any written stipulations or qualifications or changes in relation to the terms in the said documents, in his handwriting, his marking and his signature on the Plan Basics and on the service access form, and he must send the two said documents via facsimile to the facsimile number given to him by the Licensee’s representative during the conversation between them.

The Licensee shall send the rest of the provisions of the engagement terms document via regular post to the Applicant, on the transaction execution date.

(f) A remote sale transaction via telephone shall be completed and shall come into effect and the Licensee shall be allowed to charge the Applicant pursuant to its terms, only after the Licensee has received the reply notice from the Applicant via electronic mail or SMS confirming the signing of the engagement agreement and the said documents via facsimile, being duly marked and signed.

(g) The Licensee shall retain the following in its possession:

(1) the recording of the telephone conversation between the Applicant and the Licensee’s representative;

(2) the electronic mail message or the SMS that the Licensee sent to the Applicant, including the Plan Basics and the service access form attached thereto;

(3) the electronic mail message or the SMS confirming the execution of the transaction that the Applicant sent to the Licensee, as its response to the electronic mail message or the SMS that the Licensee sent to the Applicant, being presented consecutively;

(4) if the transaction was executed via facsimile, the Licensee shall retain the Plan Basics bearing the Applicant’s handwritten signature and the service access form bearing the Applicant’s handwritten markings and signature, in its possession;

(5) the rest of the provisions of the engagement terms document, updated to the agreement signing date with the Applicant.

(h) The Licensee shall make the recordings and the documents specified in clause (g) available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the effective date of the transaction.

(i) The rules specified in this clause shall also apply when at issue is the execution of a change in an existing plan or a replacement of an existing plan with a new plan.

For the purposes of this clause, “change” – the receipt of an additional service, the expansion of a service, subscribing to a service package.

The Licensee is not allowed to make any change, including a replacement of an existing plan with a new plan, without receiving the subscriber’s express consent, in the manner specified in clause 60.6(b).¹⁴⁰

(j)^{141 142}Notwithstanding that stated, if a subscriber requests to make changes that do not entail an extension of the subscriber's commitment period or creating said period, the Licensee shall include in the first telephone bill after the request date a notice in which all of the details set forth in sub-section (b) are detailed, except for the name of the Licensee's representative. For this sub-section, "commitment"-as defined in Article 56.1A of the License".

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55A.2 In a remote sale transaction, as this term is defined in section 14.C of the Consumer Protection Law, 5741 – 1981, via the internet, the Licensee shall act as follows:

(a) In its advertisement of a tariff plan on its website, the Licensee must clearly include all of the details specified in subclauses 55.4(a2) through 55.4(h), and the Plan Basics and the service access form.

(b) During the registration process for a tariff plan, as stated, the Licensee must include a presentation of the Plan Basics to the Applicant and a box that the Applicant must mark before completing his registration, as stated, whereby marking that box shall constitute a declaration that he read the information included in the Plan Basics. Insofar as the Applicant shall not mark the box as stated, it must not be possible to complete registration.

(c) As part of the tariff plan registration process, as stated, the Licensee must include an online service access form that the Applicant can mark, and retrieve at any time, and change his choices on it as he wishes.”¹⁴³

(d) The Licensee shall send a copy of the engagement terms document to the subscriber who executed a “remote sale” transaction via the internet, immediately after executing the transaction. A copy of the engagement agreement signed between the subscriber and the Licensee must be sent to the subscriber via electronic mail message, which shall include the engagement agreement as an attached file.

(e) The Licensee must retain the engagement terms document, as stated, in its possession, and make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the transaction execution date by the subscriber.

(f) The rules specified in this clause shall also apply when at issue is the execution of a change in an existing plan or a replacement of an existing plan with a new plan.

For the purposes of this clause, “change” – the receipt of an additional service, the expansion of a service, subscribing to a service package.

The Licensee is not allowed to make any change, including a replacement of an existing plan with a new plan, without receiving the subscriber’s express consent, in the manner specified in clause 60.6(b).¹⁴⁴

56. ¹⁴⁵If the Licensee publishes on its internet website a tariff plan, including tariff plans that include the purchase of MRT equipment, the said publication shall also include the subscriber agreement conditions regarding that tariff plan, including the details on the "main plan details page.

56A¹⁴⁶. The Commitment Period in the Subscriber Agreement

56A.1 If the Licensee signs a Subscriber Agreement with a Subscriber that is not a Business Subscriber, that includes a commitment, the commitment period shall not exceed eighteen (18) months; For this article, "commitment of a Subscriber to meet the conditions regarding the scope of consumption of services, payment amount or payment conditions during the defined period, for which not meeting those conditions during that period entails a payment, including the return of a benefit or an exit fee.

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¹⁴⁶Amendment No. 45

 56A.2 If the Licensee offers a Subscriber that is not a Business Subscriber, to sign a Subscriber Agreement that includes a commitment, the Licensee shall offer the Subscriber a subscriber agreement that does not include a commitment, that offers a reasonable alternative to the agreements that includes commitments. In this respect, a Subscriber Agreement that includes a "pre-paid plan" will not be considered a reasonable alternative to a Subscriber Agreement that includes a commitment. ¹⁴⁷The Licensee shall publish on its internet website the subscriber agreement that does not include a commitment, including "the main plan details page" of the said agreement.

56A.3 If the Director concludes that the Licensee has breached section 56A.2, he may instruct the Licensee to change the conditions of a Subscriber Agreement that does not include a commitment, without derogating from any other authority set forth in the License  or by law. In this respect, the Director will examine, among other issues, the number of subscribers of the Licensee that have signed agreements without commitments.

57. deleted

58. deleted

59. The Obligation to Connect Applicants and the Prohibition of Conditional Agreement

59.1 Should the Licensee fulfill the conditions regarding the operation of the MRT System as stated in Paragraph 44.2, the Licensee will connect any applicant to the MRT System no later than the date determined in the Subscriber Agreement with the Subscriber unless the Director has given his approval to the Licensee not to connect an applicant for reason which he considers justifiable.

59.2 Subject to the provisions of Paragraph 60.2, the Licensee may not condition the connection of an applicant, the provision of services or determining of tariffs, by unreasonable conditions that are discriminatory or unfair, and without derogating from the generality of the above:

(A) The Licensee is not permitted to obligate a Subscriber to purchase Terminal Equipment from it or from its agent.

(B) The Licensee is not permitted to obligate the Subscriber to receive from it maintenance service or insurance for the Terminal Equipment in his or her possession.

(C) The Licensee is not permitted to limit supply of spare parts for Terminal Equipment that was purchased from it or from its agent, to Subscribers or to another provider of maintenance services.

¹⁴⁷Amendment No, 57

Section B - Grade of Service for Subscribers

60. Obligation of Maintaining Service

60.1 The Licensee will offer its Subscribers the entire services detailed in the First Annex, in accordance with the conditions specified in the Annex, and will maintain its entire services throughout all days of the year during all the hours of the day and night, both in peacetime and in times of emergency, subject to Paragraph 48, in accordance with the technical requirements and the requirements regarding the quality of service, in an orderly and normal manner and of a quality that will not be inferior to the criteria of service quality specified in the First Annex to the License and in Appendix E of the Second Annex to the License; in case of contradiction between the First Annex and Appendix E of the Second Annex to the License, the provisions of Appendix E of the Second Annex will prevail.

60.2 ¹⁴⁸ Without derogating from the provisions of clause 75.3, the Licensee shall provide MRT Services and the  Services Package, as defined in clause 73A, to every person so requesting, on equal and non-discriminatory terms, and at a non-discriminatory tariff.

60.3 Should the Director find that the Services Package might harm competition or consumers, he shall give notice of such to the Licensee noting the date on which the Licensee is to cease offering the Services Package to its subscribers.

60.4 If the Licensee provides  any MRT Service to any person or body in return for payment, the service shall be available to every Subscriber in the entire coverage area of the system, while  meeting the minimum requirements regarding quality of service, without discrimination, within 24 months of the commencement of provision of the service in return for payment.

60.5 Upon written application from the Licensee, the Director may permit the Licensee limitations on the provisions of clause 60.4, after being convinced that there is a real difficulty in supplying the service to all who request it, and that certain characteristics of the service give special and extraordinary grounds and justification for such.

60.6 (a) The Licensee shall not provide and shall not expand, whether for a consideration or for no consideration, any of its services that the subscriber has not expressly asked to receive or expand, apart from a service being provided for free to all subscribers, and it shall not enable the provision or expansion of a service by a service-provider that the subscriber has not expressly asked to receive from the Licensee or to expand.

For the purposes of this clause, “service-provider” – whoever provides a service through the network, and the payment in respect of the service is paid through the Telephone Bill.¹⁴⁹

¹⁵⁰(b) An express request shall be submitted in one of the following ways¹⁵¹:

(1) A signed document by the subscriber that is sent to the Licensee;

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(2) An electronic mail sent by the subscriber to the Licensee;

(3) A telephone call between the subscriber and the Licensee representative;

(4) An SMS sent by the subscriber to the Licensee;

(5)  ¹⁵²Service order on the Licensee's website or content provider. A service order shall be done in accordance with the provisions of Annex F of the License;

(6) Internet chat calls with a representative of the Licensee;¹⁵³

(c) The Licensee shall retain the documentation, as stated, in its possession and shall make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the date of the subscriber’s express request.¹⁵⁴

For this matter-"documentation"-

For sub-section (b)(1)-a copy of the document;

For sub-section (b)(2)-a copy of the electronic mail;

For sub-section (b)(3)-a recording of the telephone call;

For sub-section (b)(4)-a copy of the subscriber's telephone bill that lists under the "call details", the details of the SMS sent by the subscriber and a printout of its contents as received in the Licensee’s system;¹⁵⁵

For purposes of sub-section (b)(5)-¹⁵⁶ a Log from the short message service center (SMSC)  of the Licensee in which the sending of the 2 SMS from the Licensee to the subscriber are documented, as part of the procedure of ordering a service. If the service was ordered on the Licensee's website or cellular portal by using a user code and password as set forth in section 1.3 of Appendix F of the License-the Log from the internet server that indicates the execution of the service order procedure and the Log In of typing the user code and password by the subscriber.

For the purposes of clause (b)(6) – a printout of the calls via internet.¹⁵⁷

Notes taken by the Licensee representative in the Licensee's information systems does not constitute documentation.

60.7 ¹⁵⁸The Licensee is not allowed to collect payment from the subscriber for a service or an expansion thereof¹⁵⁹ unless it has documentation regarding the subscriber's explicit request to receive the service or the expansion thereof.¹⁶⁰

60.8 ¹⁶¹If the subscriber is charged for a service or for an expansion of a service¹⁶² and notifies the Licensee that he did not request the service or an expansion thereof,¹⁶³ the Licensee shall refund him the entire sum of that was charged for the service or the expansion thereof,¹⁶⁴ if the Licensee does not have the documentation regarding the subscriber's explicit request to receive the service or an expansion thereof.¹⁶⁵ The manner of handling the subscriber's complaints granting the refund shall be executed in accordance with the provisions regarding "overcharging" detailed in article 83A of the license."

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61. Ombudsman

61.1 The Ombudsman shall be directly subordinate to the CEO of the Licensee or to the board of directors, including to one of the board committees.

61.2 Subject to the provisions of clause 61A, relating to the settlement of disputes, the roles and authorities of the Ombudsman shall be as follows:

(a) to clarify complaints of subscribers and Applicants concerning the Licensee’s services;

(b) to clarify complaints of subscribers concerning Bills that the Licensee submitted to them and to decide them;

(c) to clarify disagreements arising between the Licensee and a subscriber concerning the interpretation or execution of the engagement agreement and to decide them.

61.3 The Licensee must display a link called “Ombudsman” on its website’s home page, in a conspicuous way and location.¹⁶⁶ Pressing on the said link must lead to a target page that specifies the roles and authorities of the Ombudsman, and details for four (4) options for sending a complaint to him as follows:

(a) ordinary post;

(b) electronic mail address;

(c) online form on the Licensee’s website, to which various types of files may be attached;

(d) facsimile.

61.4 The Licensee must specify the roles and authorities of the Ombudsman in every Bill that it submits to a subscriber, and the address, facsimile number and electronic mail address through which a subscriber can sent a written complaint to him.

61.5 The Licensee must specify on its website and in every Bill that it submits to a subscriber, the details that a subscriber must complete in a complaint that it intends to send with reference to each of the four (4) options specified above.

¹⁶⁶A link entitled “contact us” shall not be deemed a substitute for the said link.

61.6 If a complaint is sent to the Ombudsman via electronic mail or using an online form, an automatic notice acknowledging its receipt must be sent to the subscriber, immediately after receiving the complaint. The acknowledgement notice must include the number assigned to the complaint in the Licensee’s system, the date of receipt of the complaint, the contents of the complaint as sent by the subscriber and the deadline by which a written response to the complaint shall be sent.

61.7 The Licensee must retain a copy of the complaint and of the written response sent to the subscriber in its possession, and make them available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the date of receipt of the complaint and of the date the response was sent.¹⁶⁷

61A. Dispute Settlement

61A.1 The subscriber agreement shall state that all disagreements that arise between the Licensee and a subscriber, regarding the interpretation or implementation of the subscriber agreement, shall be assigned to arbitration to the Licensee's Ombudsman.¹⁶⁸

61A.2. The subscriber agreement shall state that an application to the Ombudsman¹⁶⁹ in accordance with article 61.1A, shall not:

(a) prevent the subscriber from bringing the matter before the appropriate court;

(b) derogate from the authority of the Licensee to act in accordance with the provisions of article 72 regarding termination or complete termination as a result of a breach of the subscriber agreement.

62. Obligation of Maintenance

62.1 The Licensee is responsible for the maintenance of the MRT System.

62.2 Should the Subscriber purchase MRT Terminal Equipment from the Licensee or its agents, and the purchase agreement should include maintenance services, the Licensee will be responsible for maintaining the above mentioned Terminal Equipment, however the Licensee will not be responsible for maintaining Terminal Equipment which was purchased, as stated, after the maintenance period undertaken by the manufacturer, unless otherwise agreed between it and the Subscriber; should the maintenance services include insurance services, the insurance service will be provided after receipt of the permits required by any law.

62.3 Should the Subscriber use, for the reception of MRT Service, MRT Terminal Equipment which was not purchased from the Licensee or its agents, the Licensee will not be obliged to maintain this Terminal Equipment, however the Licensee may enter into an agreement with the Subscriber for the provision of maintenance services for this said Equipment as well.

62.4 For the matter of maintenance obligation, as aforesaid, this should also mean the provision of spare parts and accessories for Terminal Equipment, including Terminal Equipment of the models offered to the public by the Licensee or its agents, even if the Licensee does not provide repair services for those models.

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63.¹⁷⁰ Call Center

63.1 The Licensee shall operate a staffed call center for the receipt of calls of its Subscribers, in addition the Licensee shall apply additional means that will allow its Subscribers to contact it in order to receive information and to make inquiries, as set forth in Appendix E of the License.

63.2 The Call Center will be staffed by a skilled and professional employee team, with the necessary qualifications to handle the calls. Should a call be received regarding a fault which caused complete cessation of the Subscriber MRT services, the said team will act immediately to locate the fault and will begin taking measures to immediately repair the fault.

63.3 The Licensee shall detail in the maintenance diary the details of the fault as set forth in Article 63.2 and the steps taken to rectify the fault, all as set forth in Article 51."

64. Terminal Equipment

64.1 The Licensee will submit to the Director the specifications of the Terminal Equipment which are compatible with the MRT Network, and will assist, in accordance with the Director’s requirements, in converting them to Israeli standards or the Ministry’s standards, or to standards and specifications as aforesaid; the Director will present requirements which differ from those of European standards only for the purpose of adapting the specifications of the Licensee to Israeli standards, to the standards of the Ministry, in order to integrate the Hebrew language, to prevent interferences to other systems and interferences from other systems, and in order to achieve compatibility with the Telecommunication Networks in Israel.

64.2 The Licensee will carry out, free of charge, tests to verify that the Terminal Equipment meets the specifications of the MRT Network, in accordance with the Director’s requirements; testing of Terminal Equipment as aforesaid will be finished within fourteen (14) days from the date of the Director’s requirement.

64.3 The Licensee may sell or lease its Subscribers MRT Terminal Equipment for connection to the MRT Network, provided all the following are fulfilled:

(a) The Licensee has notified the Subscriber that he or she is entitled to purchase MRT Terminal Equipment both from any authorized dealer in Israel and from an overseas dealer, where the Equipment manufacturer confirmed that the Equipment is similar in its features and options to the Terminal Equipment marketed by the Licensee, and that the Subscriber is not obliged to purchase the Equipment from the Licensee in order to receive MRT Services;

(b) The Licensee will not make the provision of maintenance services for MRT Terminal Equipment conditional to obtaining MRT Services from it, and will inform the Subscriber that he or she may receive Maintenance Service for Terminal Equipment from any person, including Terminal Equipment purchased or leased from the Licensee.

¹⁷⁰Amendment No. 55

(c) During a sale conversation through a telephone conversation for the purchase or rental of MRT Terminal Equipment, without a transaction being transacted with an Applicant for the purchase of MRT services (hereinafter – “Purchase Agreement”), and before the Applicant expresses his consent to engage in a Purchase Agreement with the Licensee, the Licensee’s representative must ask for the Applicant’s consent to send him a printed Purchase Agreement via electronic mail or SMS or facsimile, without any handwritten changes, and bearing the Licensee’s logo, which provides a detailed description of the Terminal Equipment and the inclusive price and, insofar as payment in instalments for the Terminal Equipment was agreed upon between the purchaser and the Licensee – the number of payments and the rate of each payment, and which includes the date of the execution of the sale conversation and the details of the purchaser and of the Licensee’s representative, who must inform the purchaser that he must confirm in writing that he is accepting the terms of the Purchase Agreement as a precondition to it coming into effect. Insofar as the Applicant expressly states that he is not interested in receiving the said document in one of the three said ways during the sale conversation, then the Licensee shall be released from having to send it to the Applicant when conducting the sale conversation, and it shall be sent to him on the transaction execution date. If the Applicant asked to receive the said document via one of the ways specified above, the Licensee’s representative must send it to him in the manner requested.

The Licensee shall retain a copy of the Purchase Agreement in its possession, and shall make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the transaction execution date.

The Licensee shall record, in addition, the telephone conversation held with the Applicant, and shall make the recording available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the transaction execution date.

(d) A notice shall be sent to the Applicant asking the Applicant to confirm the execution of the transaction. The Applicant must expressly confirm the terms of the transaction, without any handwritten stipulations or qualifications or changes in relation to the terms of the Purchase Agreement, either via return electronic mail message or return SMS or facsimile, which includes his full name and ID number.

The Licensee shall retain a copy of the purchaser’s confirmation in its possession, and shall make it available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the transaction execution date.

(e) Immediately after the Applicant sends his confirmation, as stated, the Licensee shall send him a document pursuant to the law¹⁷¹ in the mode by which the Purchase Agreement was sent to him.

¹⁷¹A tax invoice/receipt

(f) When executing a transaction for the purchase of MRT Terminal Equipment in the presence of both parties, without executing a transaction for the purchase of MRT Services, and before the Applicant expresses his consent to engage in a Purchase Agreement with the Licensee, the Licensee’s representative must submit a printed copy of the Purchase Agreement to the Applicant and enable him to peruse it.

When executing the transaction, the Applicant and the Licensee’s representative must sign the Purchase Agreement submitted to the Applicant for his perusal by original signature.

After signing, as stated, the Licensee’s representative must deliver the Purchase Agreement to the Applicant bearing the original signatures of the Licensee’s representative and the Applicant, as well as the document specified in subclause (e).

After completing all that stated in this subclause, the Licensee’s representative may obtain the Applicant’s signature on a Purchase Agreement identical to the one signed with original signatures, while using electronic means.

The Licensee shall retain a copy of the Purchase Agreement and the document specified in subclause (e) in its possession, and shall make them available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the transaction execution date.

The Licensee’s representativemust perform a reliable identification of the Applicant pursuant to the procedure prescribed by the Licensee. The Licensee shall retain in its possession a copy of an identification certificate of the Applicant and a copy of an identification certificate of the payer of the Bill, which were issued to the Licensee’s representative at the time of execution of the engagement.

(g) Insofar as the subscriber and the Licensee agreed on payment in instalments for Goods that the subscriber purchased or rented from it, and the subscriber breached the engagement agreement before paying all of the payments for the said Goods, but rectified the breach within forty-five (45) days of the date the Licensee notified the subscriber of the breach, then the Licensee is not allowed to collect the balance of the payments from the subscriber for the Goods in a single payment, and the payment in instalments shall continue as agreed upon between the subscriber and the Licensee ab initio.¹⁷²

¹⁷³64A Cancelled.

¹⁷⁴65. Public Emergency Services

65.1 ¹⁷⁵The Licensee will enable, at any time and free of charge, all its Subscribers free and rapid access to public emergency services, such as: Magen David Adom, the Israel Police Force and the Fire Department..

¹⁷²Amendment 87

¹⁷⁴ Amendment No. 87

¹⁷⁵Amendment No. 19

¹⁷⁶65.2 The Licensee shall enable the public emergency service centers¹⁷⁷ to indentify the telephone number of a subscriber that  dials them¹⁷⁸, free of charge and at any time, including a subscriber with an unlisted number, a subscriber that implemented barring a call and a subscriber that dials from a private switchboard, effective 5 April 2007 (hereinafter-"the commencement date");

The Licensee may implement the aforesaid through a licensee that routes the call to the public emergency service center.

No later than 2 days¹⁷⁹ from the commencement date, the Licensee shall notify all its subscribers, in writing, and in a clear manner, that as of the commencement date, the subscriber's number will be identifiable by the public emergency service centers, and shall also notify in writing all subscribers that request an "unlisted number"-that the number will not be unlisted for calls made to the public emergency service centers.

¹⁸⁰65A. Blocking Service for Harassing Subscribers

65A.1 Notwithstanding the above-mentioned in Article 65.1, the Licensee shall block access to public emergency services for Harassing Subscribers; if the access to public emergency services only is not technically possible, the Licensee shall block the Harassing Subscriber’s access to all MRT services. For this Article, “Harassing Subscriber”- a subscriber that calls a certain public emergency service, without a justified reason, more than 10 times during one day, through Terminal Equipment in his  possession.

65A.2 Notice regarding a Harassing Subscriber shall be given in writing to the Licensee by a senior employee of a public emergency service (“the Employee”), verified by an affidavit signed by the Employee (“the Complaint”). The Complaint shall include, among other details, the name of the Harassing Subscriber, his phone number, as far as these details are known to the complainant, as well as details of the times of the calls of the Harassing Subscriber and the content of the calls that indicates that the calls were made without a justifiable reason. If the Complaint does not include the Harassing Subscriber’s phone number, the Licensee shall act in a reasonable manner  to identify the Harassing Subscriber based on the details in the Complaint.

65A.3 The Licensee shall block the Harassing Subscriber’s access to the emergency services as set forth in Article 65A.1, after giving the Harassing Subscriber prior notice. The notice shall be given 3 working days before blocking the service, in one of the following manners:

a. A call from the Licensee’s service center to the Terminal Equipment of the subscriber;

b. Sending an SMS to the Terminal Equipment of the Subscriber;

¹⁷⁶Amendment No. 40

¹⁷⁷ Israel Police-100, Magen David Adom-101 and the Fire Department-102

¹⁷⁸ Excluding a subscriber whose terminal equipment allows him to dial emergency centers only, for example a handset without a SIM card on a GSM network.

¹⁷⁹Amendment No. 42

¹⁸⁰Amendment No. 19

c. Sending a registered letter to the Subscriber; except a Pre-Paid subscriber whose address is unknown.

65A.4 Blocking service, to a Harassing Subscriber that is a Pre-Paid subscriber whose address is unknown, shall be done no later than 24 hours from the receipt of the Complaint or identification as set forth in Article 65A.2.

65A.5 Notwithstanding the above-mentioned in Article 65A.1, the Licensee shall not block a subscriber’s access to the public emergency services, if the circumstances of the calls made, based on the explanation the subscriber provides to the Licensee show that. there was a justification for the calls and he should not be deemed a Harassing Subscriber; The Licensee shall provide the Director with the reasons for not blocking access for the Harassing Subscriber within 10 working days from receipt of the  Complaint or identification as set forth in Article 65A.2

65A.6 If the Licensee blocks the Harassing Subscriber’s access to the emergency calls as set out above, he may collect from the subscriber all charges and may also be entitled to collect from him payment to remove the blockage.

65A.7 The Licensee is permitted to remove the blockage after the Harassing Subscriber provides him with a written undertaking that he will not repeat the harassment in the future.

65A.8 The Licensee shall record the manner of identification of the Harassing Subscriber, manner of notifying the Harassing Subscriber or alternatively where notice was not given to the Harassing Subscriber, the reason for not giving notice; In addition, he shall record the manner in which the blockage was removed.

65A.9 The Licensee shall provide details in the Harassing and Subscriber Report, as set forth in Article 104.4 (i)¹⁸¹ , of the number of Harassing Subscribers whose access to the public emergency services or to all MRT services, has been blocked based on this Article, as well as the number of subscribers whose blockage has been removed and the number of subscribers whose access was not blocked based on this Article and the reasons for that.

¹⁸²65B. Personal Message Service

65B.1 The Licensee shall provide a personal message service (in this section, the Service"), at all times and free of charge, to all its subscribers, including to the subscribers of another licensee, users of handsets that support the Service (thereinafter in this section the "Subscribers"), and in accordance with the "personal service" service file.

In this section:

"Another Licensee" – another MRT licensee that receives service through national roaming or an MVNO that receives service through a hosting agreement on a licensee's network;

¹⁸¹Amendment No. 41

¹⁸²Amendment No. 73

"Personal Message" – a message, warning and short explanation of the security forces that is sent immediately, selectively and focused to subscribers with MRT handsets that support the use of the cell broadcast ("CB") technology.

"Security Forces" – representatives of the Ministry of Defense and Home Front Command that are responsible for personal message system;

"Service File "Personal Message" – a service file approved by the Director, including amendments that will be executed in the service file;

65B.2 In order to execute the above mentioned in Article 65B.1, the licensee shall act as set forth in the First Appendix and in the service file regarding this service and as follows:

a) Adaption of the network and its components so that it will support the provision of the personal message service, excluding the network components that operate under the iDEN or CDMA technology;

b) Assistance and resource allocation to execute the access of the personal message service of the Security Forces to the network;

c) Operation and maintenance of the Service components in the network, in accordance with written directions that will be presented to the Security Forces; without derogating from the aforesaid, the Security Forces may instruct the Licensee to change the said instructions, however this will not derogate from the Licensee's responsibility to repair and access the network;

d) The execution of technical trials to examine the integration between the system and the network and the exercise of the network and system operation, in accordance with the instructions of the Office and the Security Forces.

65B.3 The Licensee shall report to the Security Forces any gap in the ability to supply the Service and will act to restore the ability as soon as possible, in accordance with the written operation instructions that it will formulate and present to the Security Forces.

Without derogating from the aforesaid, the Security Forces may instruct the licensees to change the operation instructions if they find them to be lacking, however this provision does not limit the responsibility of the aforesaid licensee.

65B.4 The Licensee shall notify the Security Forces in advance of any change to the network that may affect availability for provision of the Service.

65B.5 The Licensee may not make commercial use of the CB characteristic without the Security Forces' prior knowledge of at least 30 days before operating the Service and the Security Forces may notify him in writing within 15 days of their objection to the provision of the service or conditions for providing the said Service. In this case, the Licensee will not operate the Service or will only be able to operate it in accordance with the conditions determined by the Security Forces, according to the merits.

The aforesaid does not detract from the License's obligation to receive the Director's approval to the said service.

65B.6 The Licensee will assist in launching the Service for its subscribers in all of the following manners:

a) By written publicity on the company's website;

b) By direct mail to subscribers through the monthly bills upon launch of the Service;

c) ¹⁸³By providing a response to subscriber inquiries to choose the necessary specifications on his handset; for cellular handset models that were not marketed by the License, the License will make a reasonable effort to give its subscribers an answer;

d) The Licensee will allow the Security Forces to reasonably use its existing distribution channels in order to notify the subscribers of the Service.

66. Protection of Subscriber Privacy ¹⁸⁴

66.1 Without derogating from the provisions of the Law, the Secret Monitoring Law, 5739-1979, the Protection of Privacy Law, 5741-1981, or any other law regarding protection of the privacy of a person, the Licensee shall not be entitled to listen to the telephone or any other communication of a Subscriber without the Subscriber's written consent, other than for the purpose of  quality control of the service or the prevention of fraud.

66.2 Subject to the provisions of clause 66A, the Licensee, its employees, agents and any person acting on its behalf shall not be entitled to disclose lists or documents containing the name and address of a Subscriber or any other information regarding a Subscriber, including account details, call traffic, times and destinations to any person other than the Subscriber or a person authorized by the Subscriber for such.

66.3 Notwithstanding the provisions of clause 66.2, the Licensee may  do the following:

(a) provide details of the Subscriber to another licensee for the purpose of collection of monies owing from the Subscriber for services provided to it via the Network, provided that the details so provided are essential for the purpose of collecting money and accounting and that the other licensee has undertaken to maintain the privacy of  the Subscribers;

(b) provide the details of a Subscriber, to the extent that such details are in its possession, to another person under any power at law.

66A  ¹⁸⁵Services to the Security Forces

66A.1 The Licensee shall supply special services to the Security Forces, as set out in the Security Appendix (Confidential) attached to this License as Appendix K.

66A.2 The Licensee shall allow the Security Forces, as identified by  the Director  in writing, to exercise, subject to any law, their powers in respect of any telecommunications operation under the License, and shall be responsible for ensuring the existence, proper operation  and technical adaptability  of the equipment and infrastructure required to enable such performance, all in  coordination with the Security Forces and as set out in Appendix K;  the Security Forces shall bear payment under the provisions of section 13 of the Law.

¹⁸³Amendment No. 79

¹⁸⁴Amendment No. 14

¹⁸⁵Amendment No. 3

66A.3 The Licensee shall be exempt from the obligation to indemnify the State under the provisions of clause 91.2 of the License and/or under any law, for the provision of the special services to the Security Forces.

66B. Security Provisions

66B.1 The Licensee shall appoint a security officer  in accordance with the provisions of the Security Arrangements in Public Bodies Law, 5758-1998, and shall strictly adhere to the security provisions set out in Annex L to the License.

66B.2 The Licensee shall set out appropriate provisions in its foundation documents and regulations and shall act so that  no person shall be appointed to  act in a position or role set out in Annex L to this License unless he meets the following conditions:

(a) he is an Israeli citizen, as defined in the Citizenship Law, 5712-1952, and a resident of Israel;

(b) he has been given a security clearance from the General Security Services, under which there is nothing to prevent his so acting.

66B.3 The Licensee shall act to keep the activities of the Security Services confidential and shall act in accordance with the security instructions of such Security Services, including with regard to the appropriate security classification for Officer and persons with roles at the Licensee and the classification of information regarding the activities relating to the Security Services.

66B.4 The Licensee shall take such steps as are required in order to protect the system, components of the system, and the databases serving for the provision of services, operation and control of the system against the activities of unauthorized persons, under the provisions set out in Annex L of this License.

67. Subscribers’ Bills¹⁸⁶

67.1 The bill the Licensee will present to the Subscriber will be clear, concise, legible and comprehensible;  the bill will include precise details of the components of the required payments in accordance with the types of payments and the rules detailed in Chapter F.

67.2 ¹⁸⁷Cancelled

67.3 The Licensee is entitled to collect payments for its services from the Subscriber through another party, including through the Bezeq Corporation.

67.4            (a) Without derogating from all other provisions of the License regarding the manner in which the Subscriber's bill shall be set out and the method of billing, the Licenseeshall act in accordance with the Israeli Standard 5262, that concerns the credibility of the charge and full disclosure in phone bills (hereinafter in this article – "theStandard").

¹⁸⁶Amendment No. 14

¹⁸⁷Amendment No. 57

(b) Cancelled.¹⁸⁸

(c) Despite the aforesaid in sub-section (a)-

(1) With regard to the provisions of section 2.2.2 of the Standard, the rounding of numbers method shall beimplemented in accordance with the following:

((a)) An amount in a bill will be rounded to the nearest number that ends with two digits after the decimal point of the Shekel, and an amount that ends with five tenths of an Agora (three digits after the decimal point), shall be rounded up.

((b)) An amount for payment of a single call shall be rounded to the nearest amount that ends with two¹⁸⁹ digits after the decimal point of the Shekel, and an amount that ends with five tenths¹⁹⁰ of an Agora (three¹⁹¹ digits after the decimal point), shall be rounded up.

(2) Cancelled.¹⁹²

(3) The price of a phone call (voice) that includes a Variable Tariff, shall be presented in a bill to a subscriber as the average price per minute, that shall be calculated in accordance with the amount for payment for that call, divided by the total sum of minutes of the call.

In this section, "Variable Tariff"- a tariff that changes during the course of the call based on different parameters, for example, a tariff that is reduced based on the higher the usage or a variable tariff as a result of changing from "peak time" to "off peak time" during the course of the call or vice versa.

(4) In addition to the provisions at the end of section 2.2.4 of the Standard regarding the Basket of Services, the bill shall include a detailed list of the services that are included in the basket as well as the total tariff to be paid for the basket.

In this section, "Basket of Services"-a number of services that are marketed to a subscriber as a package in exchange for an all inclusive tariff (and without detailing the payment for each individual service).

¹⁸⁸Amendment 87

¹⁸⁹Amendment 87

¹⁹⁰Amendment 87

¹⁹¹Amendment 87

¹⁹²Amendment 87

(d) (1)        Chapter B of the Standard regarding full disclosure in phone bills shall become effective no later than Friday, 18 Tishrei, 5766 (14.10.2005).

(2) Chapter C of the Standard regarding the credibility of the charge shall become effective no later than Sunday, 15 Tevet 5766 (14.1.2006).¹⁹³

¹⁹⁴67.5 A bill that is sent to a Non-Business Subscriber shall be in the format set forth in Annex E1 (hereinafter for this Article- "Bill Format for a Non-Business Subscriber and for a Split Business Subscriber"¹⁹⁵).

¹⁹⁶67.5A A bill submitted to a business subscriber shall include the details set forth in sub-sections 9B (1) to 9B (4) in Appendix E1 of the License." In this section "business subscriber"-except for the subscribers detailed in sub-sections (b) and (d) of the definition of "business subscriber" in article 1 of the License.

67.6 A Business Subscriber may request that the Licensee send him a telephone bill in a Non-Business Subscriber Format (hereinafter in this Article-"Request"). If the subscriber makes such a request, the Licensee shall begin sending him bills in accordance with said format, no later than two bill periods from the date of the Request. The Licensee shall publish bi-annually, a notice in the telephone bill sent to Business Subscribers, that the Business Subscribers may request that the Licensee format their telephone bill in accordance with the Non-Business Subscriber Bill Format. ¹⁹⁷In addition, a business subscriber may request from the Licensee details in writing regarding the calculation manner of a "one time charge". The Licensee shall submit to the business subscriber the said details in writing regarding a "one time charge", within thirty (30) days of the date that the subscriber requested the matter from customer services or from the Ombudsman.¹⁹⁸

67.7 The subscriber shall receive the Bill, at its choice, via one of the following modes:

(a) regular post;

(b) electronic mail with an attached file;

(c) SMS with an attached link;

(d) the Licensee’s website;

(e) other electronic means at the choice of the Licensee.

The Licensee must present the five (5) said modes for the subscriber’s choice on the service access form. If the subscriber does not select one of the modes, then the Bill must be sent to him by regular post. The subscriber may change the mode for receiving the Bill at any time, by way of an oral or written request.

¹⁹³Amendment No. 33

¹⁹⁴Amendment No. 50

¹⁹⁵Amendment 87

¹⁹⁶Amendment No. 57

¹⁹⁷Amendment No. 57

¹⁹⁸Amendment 87

The Licensee must document the subscriber’s request, as stated, and make this documentation available for delivery or forwarding to the Director, at his request, and this, within five (5) workdays of the submission of the request.

If the subscriber submitted his request during the first half of the billing period, then the Licensee shall send him the Bill immediately following the date of his request in the mode selected by the subscriber. Otherwise, the Licensee shall send the subscriber the Bill in the mode selected by the subscriber after the upcoming Bill.

The Licensee is not allowed to demand any payment from the subscriber for issuing the Bill, which includes “itemized calls” either regularly or on a one-time basis, and sending it to him, at his request, through electronic means. The Licensee may demand reasonable payment in respect of “itemized calls” from any particular date, which was sent to the subscriber at his request regularly or on a one-time basis, only in the event that the Bill was received by the subscriber as specified in subclause (a).¹⁹⁹

67.8 ²⁰⁰If the payment detailed in the telephone bill is done by debit bank payment or credit card, the said payment shall not be done before ²⁰¹ten (10)²⁰² days have passed from the date that the telephone bill was sent to the subscriber.

67.9 ²⁰³In relation to subscribers receiving their Bills via regular post, the Licensee may act as follows in relation to the sending of Bills:

(a) The Licensee shall send a separate letter to every such subscriber by regular post or via electronic mail message, asking the subscriber to choose, within thirty days (30) of the date the letter or the message was sent, the way by which his monthly Bill will be sent to him, out of the following ways:

(1) regular post;

(2) electronic mail with an attached file;

(3) SMS with an attached link;

(4) the Licensee’s website;

(5) other electronic means at the choice of the Licensee.

(b) The Licensee must enable every subscriber, as stated, to respond to the letter to him via regular post, without payment, and via electronic mail and facsimile.

(c) The Licensee is obligated to operate at least two electronic means out of that specified above in subclause (a).

¹⁹⁹Amendment No. 87

²⁰⁰Amendment No. 57

²⁰¹Amendment No. 58

²⁰²Amendment No. 87

²⁰³Amendment No. 87

(d) The Licensee must specify in its letter to a Business Subscriber and to a Split Business Subscriber, in a framed notice, in boldface and at a font size of at least 16, that, insofar as it shall not choose the mode by which it shall receive the Bill, the Bill shall be sent to it in the mode to be decided by the Licensee, and this, without derogating from the provisions of section 13.B.(a) of the Consumer Protection Law, 5741 – 1981.

(e) The Licensee must specify in the notice to a Non-business Subscriber, in a framed notice, in boldface and at a font size of at least 16, that, insofar as he shall not choose the mode by which he shall receive the Bill, the Bill shall be sent to him by regular post.

(f) The Licensee is not allowed to send the Bill by way of an SMS to Terminal Equipment that is blocked to the receipt of SMSs and to Terminal Equipment that is not a smartphone.

(g) The Licensee is not allowed to change the mode of sending the Bill to a Non-business Subscriber who did not respond to the request that the Licensee sent to him.

(h) If the mode of sending the Bill to a subscriber was changed, the Licensee shall send a notice to the subscriber before sending the first Bill in the new mode, by way of SMS, which informs it of the details of the change. Any subscriber blocked from receiving SMSs must receive the said message in the Bill following the execution of the change.²⁰⁴

²⁰⁵67A. Information Service for Telephone Number Enquiries²⁰⁶

67A.1 Without derogating from the aforesaid in Article 66, the Licensee shall provide, either by itself or through another on its behalf, an information service for the enquiry of telephone numbers of all subscribers of land line operators or  MRT operators, except for classified subscribers (hereinafter- "information service"), as follows:

(a) for the general public and cost free, through an internet site that will provide the service;

(b) for its subscribers, at a reasonable cost, through a telephone center to which the the access will be provided by a network access code to be determined by the Director;

(c) the information service shall be provided by all of the above methods based on the same information features that the subscriber will provide when he requests the service.

67A.2   Cancelled.²⁰⁷

²⁰⁴Amendment No. 87

²⁰⁵ Amendment No, 14

²⁰⁶Amendment No. 38

²⁰⁷Amendment No. 87

67A.3 In addition to the above-mentioned in clause 67A.1²⁰⁸, the Licensee may offer, at a reasonable price, either by itself or another on its behalf, an information service, through any other method, including a national access code or through a short message system service (SMS).

67A.4 For the execution of the aforesaid in Article 67A.1 and 67A.3:

(a) The Licensee may approach anydatabase of a line operator or MRT operator (hereinafter in this article – "another licensee") with a question, or receive information from a database of another licensee through any other method and with the consent of the other licensee, all subject to the obligation regarding  protection of the subscriber's privacy;

(b) For the provision of the information service by another licensee in accordance with its general license, the Licensee shall allow any other licensee access to the Licensee's database;

(c) The Licensee shall reguarly update the database, so that every name, address or telephone number of a subscriber that has been added, changed or removed, shall be updated in the database within one working day after the implementation of the update in the Licensee's system for the provision of telephone services.

For this Article-

"database"- a pool of data that includes the name, address and telephone number of every subscriber that is not classified, including a subscriber that is a business.

67A.5        (a) The Licensee shall obtain the consent of every new subscriber in order to include their details in the database; if the subscriber consents to the aforesaid, the Licensee shall include the subscriber's details in the database.

(b) The Licensee shall comply at no cost with every subscriber's initial request to remain classifed.

In this Article, "new subscriber" –a subscriber that registered with the   Licensee after the commencement date as set forth in Article 67A.7 below.

67A.6         (a) The conditions for the provision of information service to enquire about telephone numbers in accordance with Article 67A shall be determined by the Licensee, provided that they are fair and non discriminatory, including presentation of the data to those requesting the service; the service shall be provided twenty four (24) hours a day, every day of the year, except for Yom Kippur; in this Article, "presentation of the data"- if the answer to a question of a person requesting the service consists of a number of different data, the data shall be presented in a coincidental manner;

(b) Cancelled.²⁰⁹

²⁰⁸Amendment No. 87

²⁰⁹Amendment No. 87

(c) Information service for telephone number enquiries as set forth in Article 67A.1 (b) and Information Service through a telephone center to which the access shall be provided by a national access code as set forth in Article 67A.3 shall meet the following service standards:

(1) at any time, except in cases of heavy traffic of calls requesting the service²¹⁰,  the amount of callers that will receive service shall not be less than 90%;

(2) the average waiting period of a caller until the start of receiving service²¹¹ shall not exceed 30 seconds;

(3) the maximum waiting period of a caller until the start of receiving service shall not exceed 60 seconds.

67A.7 Article 67A shall become effective on 8 February 2007 excluding Article 67A.1 (a) that will become effective on 15 March 2007 ("commencement date") but excluding Article 67A.2.²¹²

67A.8 The Licensee, either itself or through another, including together with another licensee, shall publish any information service for telephone number enquiries that is being provided by the Licensee at no cost (hereinafter - “free information service");²¹³ the publication shall include at least the following:

(a) an internet site of the Licensee;

(b) every Telephone Bill of the subscriber.²¹⁴

(c) at least four (4) times during the first year after the commencement date, the Licensee shall publish large and prominent advertisements in at least 3 of the most common newspapers in Hebrew and the most common newspaper in Arabic, English and Russian as well as in the most common financial newspaper; these advertisments shall not include any other information. The first publication regarding cost free information services shall be in the above detailed newspapers, except for the financial newspaper, which shall be on the first Friday after the commencement date or the following one and in the financial newspaper on the first Tuesday after the commencement date of the following one.

Without derogating from the above-mentioned, the Minister may instruct the Licensee regarding the manner and format for the publication of the information services.

67B. Deleted²¹⁵

²¹⁰ Busy Hour Call Attempts

²¹¹ Start of receiving service-an answer by a telephone operator or by the IVR system that requests the information from the caller in order to locate the requested telephone number etc.

²¹²Amendment No. 42

²¹³Amendment No. 87

²¹⁴Amendment No. 87

²¹⁵Amendment No. 41

67C. Service File

²¹⁶67C.1 If the licensee wishes to activate a service that is included in the list of services listed in the First Appendix and titled “future”, it shall notify the director in writing no later than thirty (30) days before the date it intends to begin supplying the service.

67C.2 If the licensee wishes to activate a new service that is not included in the list of services listed in the First Appendix that it intends to supply to any of their service receipiants, it shall notify the directorin writing no later than thirty (30) days before the the date it intends to begin supplying the new service.

67C.3 The director shall notify the licensee within thirty (30) days of receipt of the notice of the licensee as set forth in Articles 67C.1 and 67C.2, if it is allowed to begin supplying the service or if it needs to submit a service file for the director’s approval, as a condition for beginning the service.

67C.4 The licensee shall submit a service file for the director’s approval upon his demand; if the licensee shall not submit a service file uponthe director’s demand, or if the director does not approve the service file, the licensee shall not begin supplying the service.

67C.5 The director’s decision regarding the service file submitted to him shall be given within sixty (60) days from the day that the licensee submitted to the director all the required documents and information for the approval of the service file. In special cases, the director may extend the dates set forth in this article, in a written and detailed notice to the licensee.

67C.6 The director may require the licensee to submit for his approval a service file for an existing service, that does not require a service file, and he may also require the licensee to submit for his approval a new service file for a service for which a service file has already been approved.

67C.7 The service file shall be submitted to the director in a format and at a time set forth by the director and shall include ,among other things, provisions regarding the following:the name of the service, a detailed description of the service and the supply method, the service tariff,an engineering description, and all in accordance with the First Appendix; the director may advise of additional details that should be included in the service file.

67C.8 If the service file is approved, the licensee shall supply the service in accordance with the conditions of the approved file and the approved service file shall be considered an integral part of the license.

67C.9 The licensee shall publish the approved service file, with the details and in a manner set forth by the director, and the director may publish it himself, as long as he does not do so until after the licensee begins supplying the service. The notice to the public shall not include information that are trade secrets, that have been noted by the licensee and attached as a separate annex marked as trade secrets to the service file.

²¹⁶Amendment No. 41

67C.10 Each new service file that the licensee shall begin supplying in accordance with this article, will be considered part of the First Appendix; the director shall update the Appendix from time to time.

67.11C The provisions of this article shall apply with the necessary changes for tests by means of the network of the licensee.

67D²¹⁷ Adult Voice Services

Adult Voice Services provided through the Network, shall be done in accordance with the provisions of Annex "M", in the Second Supplement .

For the purpose of this Article-

"Adult Voice Services"- as defined in Article 1 in Annex M, in the Second Supplement.

67D.1²¹⁸ Premium Service

²¹⁹67D1.1 The Licensee may provide Premium Services in one of the following manners:

a) Premium Service, for which the payment is charged according to the Premium Tariff and is collected through the Telephone Bill shall be provided in accordance with the provisions of Appendix N.

b) Premium Service, for which the payment is charged according to the Regular Tariff (hereinafter in this sub-section "the Service") will be provided as follows:

1) As an internal network service through a network access code²²⁰;

2) By dialing a Fixed-line telephone number to which the access will be possible for each subscriber of the subscriber of a General Licensee.

For this article,

"Fixed-line telephone number"- a number format of geographic numbers and national fixed line numbers or number format star 4 digits (*XXXX), in accordance with that defined in the numbering plan²²¹.

"Premium Service" and "Premium Tariff" as defined in Appendix N

²²²67E National Roaming

67E.1 The Licensee shall supply National Roaming services through its network to a Roaming Licensee to the Roaming Licensee's subscribers to the network of the host operator, as detailed below.

²¹⁷  Amendment No. 22

²¹⁸ Amendment No. 75

²¹⁹Amendment No. 76, 80

²²⁰"Network access code" as defined in the numbering plan.

²²¹ For example numbers in the format 03-XXXXXXX and 07Z-xxxxxxx or *XXXX

²²²Amendment No. 59

67E2. Preparation of the Licensee

The Licensee shall prepare for the execution of National Roaming in accordance with the following:

a) The provisions of Appendix X in the Second Annex;

b) The provisions of the law and the license regarding enabling use of its network and particularly Articles 30 through 30C, with the necessary changes.

67E.3 Operational arrangement

a) If the Roaming Licensee shall notify the Licensee in writing, after notifying the Minister that it did not reach an agreement with any of the existing Licensees regarding the conditions for the provision of roaming services as set forth in Article 5B(b)(1) of the Law, that it has chosen that Licensee  for the receipt of National Roaming services (in this section "the notice"), the Licensee and the roaming operator shall provide the Minister with the engineering and operational details that they have agreed upon between themselves regarding the implementation of National Roaming ("operational arrangement"), within three months from the date the notice is sent. In addition, the said operators shall include the required engineering and operational details in order to maintain National Roaming that were not included in the operational arrangement, due to disagreements, if there are any;

b) Issues that are not agreed upon, as set forth in sub-section (a) above, if there are any, shall be decided by the Director. The directions of the Director for this matter shall form an integral part of the operational arrangement.

67E.4 Commencement date of National Roaming implementation

The host Licensee shall begin providing National Roaming services in accordance with the operational arrangement no later than three months from the date that the Roaming Licensee presented to the host Licensee the Minister's confirmation as set forth in section 5B(b)(2) of the Law.

67F. International Roaming Service through the Network of the MRT Operator in the Neighboring Country

67F.1 The Licensee shall act so that in an area in which there is reception that allows the initiation of a proper call, from the network as well as from the network of the MRT operator in the neighboring country, the subscriber shall receive MRT service through the network. The Licensee shall perform the action itself without requiring any action on behalf of the subscriber.

67F.2 The Licensee shall block the possibility of the subscriber to receive international roaming service through the network of the MRT operator in the neighboring country ("the Service"), unless the subscriber explicitly requested to receive the Service, and after it was explained to him that as part of receipt of the Service, the handset in his possession may roam in the area of the border with the neighboring country, involuntarily, onto the network of the neighboring country, and that he was advised of the tariffs for the Service; if the subscriber requests to receive the said Service-

a) The Licensee shall explain to him how he may manually select, through the handset in his possession, the MRT network from which he will receive service;

b) The Licensee shall allow the subscriber to select whether to block access for receipt of data communications service through the MRT network of the neighboring country.

67F.3 In this section, "neighboring country"-Jordan and Egypt;

"Proper call"- a call that takes place in accordance with the minimal reception definitions set in the international standards according to which the network operates.

67G Offensive sites and content²²³

67G.1 The Licensee shall notify its subscribers with respect to offensive sites and content as defined in section 4i of the law, as set forth in section 4i(b)(1) of the law; said notification shall be done in the manner set forth in section 4i(c) of the law.

67G.2 The Licensee shall notify its subscribers with respect to the existence of internet content that is unsuitable for children and teenagers (for example pornographic sites), and will include a list of ways in which the access to such content by children and teenagers can be blocked; said notification shall be done in the manner set forth in section 4i(c) of the law.

67G.3 The Licensee shall offer its subscribers, in all of the ways set forth in section 4i(c) of the law, an effective service for filtering offensive sites and offensive content at no extra cost to the payment that he charges for the internet access service, and all as set forth in section 4i(d) of the law, as long as the said service shall be based on an analysis of the information and not a "black list" of only sites.

²²³Amendment No. 65

Section C - Suspension or Disconnection of Service and Termination of an Engagement²²⁴

68. Definitions

“Termination of Service”	-	permanent disconnection of any of the Licensee’s services to all of the subscribers;
“Suspension of Service”	-	temporary halting of any of the Licensee’s services or of all of the Licensee’s services, which are being provided to a subscriber;
“Disconnection of Service”	-	Permanent disconnection of any of the Licensee’s services, which are being provided to a subscriber;
“Termination of an Engagement”	-	Disconnection of all of the Licensee’s services being provided to a subscriber, and termination of the engagement agreement with him.225

69. Prohibition of Suspension or Disconnection of Service

The Licensee is not entitled to suspend or disconnect MRT Services and other services, which the Licensee is obliged to provide in accordance with this License, unless that which is stated in this part, or that stated in Paragraph 48 exists.

69A. Prohibition of Termination of Service

The Licensee is not allowed to terminate MRT Services and other services that the Licensee is obligated to provide pursuant to this License, unless that stated in this part or that stated in clause 48 have been fulfilled.

²²⁴Amendment No. 87

²²⁵Amendment No. 87

69B. Suspension of Service at the Subscriber’s Request

69B.1 A subscriber may request from the Licensee to suspend service in respect of all of the Licensee’s services, once a year, for a period of not less than thirty (30) days and not more than ninety (90) days.

69B.2 A subscriber may submit a request to suspend a service in the following ways:

(a) in writing, including by way of ordinary post, facsimile, electronic mail or online form on the Licensee’s website, to which various types of files may be attached, and the Licensee may enable the submission of a request by way of internet chat calls;

(b) orally, during a call to the telephone call center or at a service station of the Licensee;

69B.3 The Licensee must document the subscriber’s request and make this documentation available for delivery or forwarding to the Director, upon his request, and this, within five (5) workdays of the submission date of the request.

69B.4 The Licensee shall carry out a suspension of service, disconnection of service or termination of engagement by no later than one workday after the day on which the request was submitted; if the subscriber indicated a future date in its request for executing the suspension of service, disconnection of service or termination of engagement, the Licensee shall carry out the request on the date specified by the subscriber.

69B.5 The Licensee must document in its information systems the date and time of the execution of the subscriber’s request.

69B.6 If a suspension of service was executed for a subscriber, the Licensee shall resume the provision of the service by no later than one workday after the day on which the subscriber’s request was submitted, unless the subscriber requested a later date for resuming the provision of the service.

69B.7 If the subscriber requested a suspension of service for all of the Licensee’s services, the Licensee shall save the subscriber’s telephone number for him throughout the entire period of the suspension, and shall not transfer it to another party.

69B.8 The Licensee is not allowed to collect payment from the subscriber for suspension of service, for resuming the provision thereof, and is not allowed to collect payment from the subscriber for the period of the suspension of all of its services.

69B.9 After the provision of the service was resumed for the subscriber, the Licensee shall charge the subscriber according to the plan tariffs and conditions, pursuant whereto the subscriber had been charged prior to the suspension of the service, unless the plan tariff and rates were changed for all subscribers to that plan during the period of the suspension of service.

69C. Disconnection of Service at the Subscriber’s Request

69C.1 A subscriber may request disconnection of service from the Licensee; the subscriber may submit its request in writing or orally, as stated in clause 69B.2.

69C.2 The provisions of the above clauses 69B.3 through 69B.5 shall apply to a disconnection at a subscriber’s request, and the Licensee is not allowed to collect payment from the subscriber for disconnection of the service.

69D. Termination of an Engagement at the Subscriber’s Request

69D.1 A subscriber may notify the Licensee of termination of the engagement between them; the subscriber may deliver its notice in writing or orally, as stated in clause 69B.2.

69D.2 The provisions of the above clauses 69B.3 through 69B.5 shall apply to termination of an engagement at the subscriber’s request.

69D.3 The Licensee shall send notice to the subscriber about the termination of the engagement within two workdays of the date of the subscriber’s request to carry out the termination of the engagement. The notice must include, inter alia, the date of execution of the termination of the engagement and the deadline for sending the last final Bill, which relates to the last billing period of his being a subscriber of the Licensee (“Final Bill”).

69D.4 A subscriber who terminated the engagement with the Licensee must receive a Final Bill on the closest possible date, and by no later than two months after the termination date of the engagement.

The Final Bill must specify the execution date of the termination of the engagement and it must bear the heading “Final Bill.”

69D.5 That stated in this clause in no way derogates from a termination of engagement by way of number portability, according to a numbering plan relating to number portability – consolidated version, of 22.8.2005, inclusive of amendments thereto.

69E. Saving the Telephone Number upon Termination of an Engagement

69E.1 If a termination of an engagement between the Licensee and a subscriber was executed, whether at the initiative of the Licensee or at the subscriber’s initiative, the Licensee shall save the telephone number for the subscriber, at no charge and without any conditions or restrictions, and shall not deliver it to another party and shall not return it to the pool of numbers designated for allotment, either of the Licensee or of another licensee that had initially allotted it, and this, for a period of fourteen (14) days after the termination date of the engagement.

69E.2 If the subscriber asked to retrieve his telephone number within the said timeframe, the Licensee shall carry out the subscriber’s request immediately, and it is allowed to charge the subscriber for the timeframe between the termination of the engagement and its resumption with that same telephone number that was returned to him, according to the terms of the tariff plan he had subscribed to prior to the execution of the termination of the engagement, and to continue to charge him pursuant to the terms of the said tariff plan.

69F. Suspension or Disconnection of Service or Termination of an Engagement – General Provisions

69F.1 The Licensee must display a link called “Suspending/Disconnecting of Service”²²⁶ on the home page of its website, in a conspicuous manner and location, the pressing of which will redirect to the following three possibilities:

(a) suspension of service;

(b) disconnection of service;

(c) termination of an engagement.

69F.2 The Licensee shall display the following details in each of the three said possibilities:

(a) brief explanation of the selected possibility;

(b) the modes of communication for the purpose of submitting a request in each of the said possibilities, including the telephone number, address, facsimile number, electronic mail address, the online form and internet chat calls, insofar as the Licensee chose this possibility, through which a subscriber can submit such a request;

(c) the details that the subscriber must specify in his request, including the telephone number relevant to the request, the subscriber’s ID number, the last four (4) digits of the means of payment, electronic mail address, insofar as the subscriber uses electronic mail for the purpose of submitting his request, and the subscriber’s specified date for carrying out his request;

(d) the date of execution of the subscriber’s request, the termination date of the billing in the Telephone Bill and the deadline for sending a Final Bill to the subscriber in the instance of termination of an engagement.

69F.3 The Licensee shall publish on every Telephone Bill, the telephone number, address, facsimile number and electronic mail address through which the subscriber can submit requests as stated.

69F.4 If the subscriber submitted his request via electronic mail, the Licensee shall send, immediately upon receiving the request, a reply electronic mail notice acknowledging the receipt of the request. The notice shall include the number assigned to the subscriber’s request in the Licensee’s system, the receipt date of the request, and the contents of the request as sent by the subscriber.

69F.5 If the subscriber submitted his request via online form, the Licensee shall display on the device screen through which the online form was sent (computer or compatible MRT Terminal Equipment) a notice acknowledging receipt of the request; the notice shall contain the details specified in clause 69F.4.

²²⁶  A link called “contact us” shall not be deemed a substitute for the said link.

69F.6 If the subscriber’s request, which was submitted via online form, included one of the details specified in subclause 69F.2(c) and it is erroneous, the Licensee shall mark the erroneous detail on the online form and the subscriber shall be requested to resubmit his request with the correct detail.²²⁷

70. Cancelled²²⁸

71. Cancelled²²⁹

71A.²³⁰ Blocking of MRT Terminal Equipment and Services Due to Theft or Loss²³¹

71A.1 The Licensee shall retain the IMEI – International Mobile Equipment Identity number in its MRT System that the subscriber is using, apart from MRT Terminal Equipment operating with iDen technology (hereinafter in this clause – “Terminal Equipment”).²³²

 71A.2 If the subscriber notified the Licensee that his Terminal Equipment has been stolen or lost, the Licensee shall perform the following:

(a) During the conversation with the subscriber when delivering his notice as stated, the Licensee shall take action to reliably identify the subscriber.

(b) The Licensee shall raise the possibility to the subscriber of immediately filing a complaint at a police station about the theft or loss of the Terminal Equipment.

(c) The Licensee shall request an alternate telephone number from the subscriber through which contact can be made with him.

(d) The Licensee shall immediately perform a “suspension of service” at no charge for all of the services being provided for consumption, including international services, by blocking the subscriber’s SIM card, apart from incoming calls, if the subscriber asked to not block these calls, immediately upon receiving the notice about the theft or loss of the Terminal Equipment, and shall notify the subscriber of this.

(e) Notwithstanding that stated, the Licensee shall perform a “suspension of service” at no charge for all of the MRT services being provided to the subscriber, including incoming calls, after three (3) days have elapsed since the receipt date of the notice regarding the theft or loss of the Terminal Equipment.

²²⁷Amendment No. 87

²²⁸Amendment No. 87

²²⁹Amendment No. 87

²³⁰ Amendment No. 46

²³¹Amendment No. 87

²³²Amendment No. 87
 

(f) If the subscriber notified of the theft or loss of the Terminal Equipment while he is located abroad and is receiving international roaming services, the Licensee shall immediately perform and at no charge “suspension of service” for all of the MRT services being provided to the subscriber, by blocking the subscriber’s SIMcard, including with regard to incoming calls, unless the subscriber asked to not block these calls.

(g) The Licensee shall block the Terminal Equipment at no charge, by blocking the IMEI number of the said equipment, as last received in the Licensee’s MRT System, and this, immediately after twelve (12) hours have elapsed since the time of the subscriber’s notice about the theft or loss of the Terminal Equipment. The Licensee shall advise the subscriber, when receiving his notice about the theft or loss of the Terminal Equipment, that the blocking of the Terminal Equipment by blocking his IMEI number, shall be carried out at the time as stated.

(h) The Licensee shall immediately remove and at no charge, the blocking from the Terminal Equipment, according to the request of an authorized party; “authorized party” for the purposes of this clause is a police officer who received authorization from a police officer at the rank of brigadier-general to contact the Licensee and to instruct him about removal of the blocking. The Licensee shall mark in its information system, using a special marketing, Terminal Equipment for which an “authorized party” requested removal of blocking, but shall not disclose any information about removal of the blocking, as stated.

(i) The Licensee shall again block the Terminal Equipment after authorized to do so by the “authorized party.”

(j) The Licensee shall resume the provision of all of the services to the subscriber immediately upon delivering a new SIM card to the subscriber.

(k) The Licensee shall specify in the subscriber’s Telephone Bill immediately after the date it received the subscriber’s notice about the theft or loss of the Terminal Equipment, or in the following Telephone Bill, the date and time of the subscriber’s report, the date and time of the suspension of the MRT Services to the said Terminal Equipment, as specified in clauses 71A.2.(d) through 71A.2.(f), and the date and time of the execution of the blocking of the Terminal Equipment, in the event that the equipment was not found.

(l) The Licensee must retain documentation of the Telephone Bill, which includes the said notices, and make this documentation available for delivery or forwarding to the Director, upon his request, and this, within five (5) workdays of the production of the Bill.

(m) On a daily basis, the Licensee shall forward a computer file to all MRT Operators, including MRT Operators on another network, and to “the authorized party,” which includes information about any Terminal Equipment, the IMEI number of which it has blocked on that day, about any Terminal Equipment for which the blocking of the IMEI number has been removed on that day at the subscriber’s request, about any Terminal Equipment for which the blocking of the IMEI number has been removed on that day at the request of “the authorized party,” and about any Terminal Equipment, the IMEI number of which has been reblocked, with the approval of “the authorized party,” after the blocking thereof had been removed earlier at its request. The Licensee shall forward the said computer file daily, by 23:00, in relation to all Terminal Equipment that was blocked or unblocked as stated up until 23:00.

(n) On a daily basis and by 24:00, the Licensee shall update the list of Terminal Equipment in its information system that it blocked on that day and, by 24:00, shall update the list of Terminal Equipment that were blocked by other MRT Operators on that day, and for which a report about them were delivered to it by way of computer files sent to it by other MRT Operators. The list must include the following details in relation to each piece of Terminal Equipment:

(1) its IMEI number;

(2) name of the manufacturer;

(3) model of the Terminal Equipment;

(4) blocking date and time;

(5) name of the Licensee that ordered the blocking.

(o) The Licensee shall at all times enable the performance of a search on its website according to the IMEI number of the Terminal Equipment, when the IMEI number has been blocked due to a notice of theft or loss.

(p) The Licensee shall retain an updated list in its possession with the details as specified in subclause (n) of all Terminal Equipment that has been blocked, and deliver or forward it to the Director, upon his request. The said list must be identical at all of the MRT Operators.

(q) The Licensee shall publish the following information on its website:

(1) recommended actions that subscribers should take if their Terminal Equipment is stolen or lost, including:

((a)) setting a password to prevent use of the Terminal Equipment by any unauthorized person;

((b)) installing applications in the Terminal Equipment, insofar as at issue is a smartphone, which enables identifying the location of the Terminal Equipment, and enables remote blocking of access to information in it, or deletion thereof;

((c)) performing backs up of vital information to a computer or through cloud services, such as: photos, videos, lists of contacts and e-mail messages.

(2) actions that subscribers should take once they realize that their Terminal Equipment has been stolen or is lost.²³³

71A.3 The Licensee shall provide the details of  terminal equipment it has blocked, to any other MRT licensee, no later than one working day after the execution set forth in Article 71A.2.

71A.4²³⁴     (a) The Licensee is not allowed to supply MRT services to terminal equipment it or another MRT licensee has blocked.

²³⁵(b) Notwithstanding the above-mentioned in Article 71A.2 and sub-section (a), if the blocking of the identification number will cause termination of service for other terminal equipment with the same identification number, the Licensee may choose to not perform the said blocking.

71A.5 The Licensee shall cancel the blocking to the terminal equipment it has blocked, after receipt of a request ²³⁶from the subscriber; the cancellation of the blocking shall be done no later than one working day after the Licensee has verified the credibility of the request, unless the subscriber has specifically noted another later date. ²³⁷

71A.6 The Licensee shall publish its obligations to all its subscribers regarding the possibility of blocking MRT terminal equipment, the methods for recording the identification number of the terminal equipment with the Licensee and the application process for the blocking; the publication shall be done in one of the following manners:

(a) in the subscriber agreement;

(b) on the Licensee's website

(c) in a separate information page that will be attached to the monthly subscriber invoice, by30 January 2009²³⁸.

71A.7 The Licensee shall detail in a bi-annual report, the number of blocked identification numbers and the amount of indentification numbers for which blocking was removed as well as the amount of identification numbers that were not blocked in accordance with this article and the reasons for it.

72. Termination or Disconnection of Service Due to Breach of Agreement

72.1 The Licensee is entitled to terminate or disconnect service to a Subscriber if one of  following exists:

(A) The Subscriber did not pay a payment which he or she owes for the Service he or she has received, on the date determined for payment, in his or her Subscriber Agreement with the Licensee;

²³³Amendment No. 87

²³⁴Amendment No. 47

²³⁵Amendment No. 47

²³⁶Amendment No. 48

²³⁷Amendment No. 48

²³⁸Amendment No. 48

(B) The Subscriber breached a condition in the Subscriber Agreement between him or her and the Licensee, which has been determined a fundamental condition;

(C) The Subscriber has unlawfully used or has permitted another party to unlawfully use the Terminal Equipment in his or her possession.

72.2 The Service of a Subscriber will be terminated or disconnected in the events specified in Paragraph 72.1(a )and 72.1(b) only after the Licensee has given the Subscriber notice in writing no less than ten (10) days prior to the expected termination or disconnection;  it will be written in the notice that the Subscriber is granted the opportunity, within a reasonable time that will be determined in the notice, to correct the act or omission for which the Service will be terminated or disconnected.

72.3 Notwithstanding that stated in Paragraph 72.2, the Licensee is entitled to suspend²³⁹ the Subscriber’s service without notice should one of the following occur:

(A) The Subscriber did not pay his or her bill of payment he or she was billed for the third time during a period of twelve (12) months for MRT Services on the date determined in the payment notice;

(B) There is reasonable concern about an act of fraud through the Terminal Equipment of the Subscriber or though the features of the Terminal Equipment;

(C) Cancelled²⁴⁰.

72.4 The Licensee may suspend²⁴¹ Service of the Subscriber if it is evident that the Terminal Equipment in the possession of the Subscriber, through which the Subscriber attains MRT Services, causes interference in the provision of MRT Services to other Subscribers or interference to the activities of the MRT Network, provided the Licensee gave the Subscriber notice in writing no less than twenty one (21) days before the expected suspension²⁴² date; in the notice, the cause of the expected suspension²⁴³ will be specified and the fact that the Subscriber is granted an opportunity, within the time framework that will be determined in the notice, to repair the Terminal Equipment in a manner which will prevent the said interference.

72.5 Insofar as the Licensee suspends service for all of its services, due to a subscriber’s breach of agreement, the Licensee shall stop collecting a monthly or other fixed periodic payment from the subscriber of the date of the suspension of service, as stated, and this, until the provision of all services is resumed; during the billing period in which the service was suspended as stated, the Licensee shall collect a fixed payment from the subscriber according to that specified in clause 74.3(c) or according to that specified in clause 74.3(d), as relevant.²⁴⁴

²³⁹Amendment 87

²⁴⁰Amendment 87

²⁴¹Amendment 87

²⁴²Amendment 87

²⁴³Amendment 87

²⁴⁴Amendment 87

72A.²⁴⁵ Disconnection of Service²⁴⁶ to Dormant Subscribers

72A.1 The Licensee is allowed to disconnect service to a dormant subscriber.²⁴⁷ If the Licensee wishes to disconnect²⁴⁸ service to a dormant subscriber, it must give the dormant subscriber prior notice of this intention as set forth below (hereinafter, in this Article "notice"). The service disconnection²⁴⁹ date shall not be less than thirty (30) working days after the date the notice is sent.

72A.2 The Licensee shall specify in the notice, the telephone number to which it intends to disconnect²⁵⁰ from service.

72A.3 The notice to a dormant subscriber shall be done as follows:

(a) For a subscriber whose name and address are known to the Licensee, in any of the following ways-

(1) by a letter sent by regular mail;

(2) by 2 short messages (SMS) that should be sent to the dormant subscriber in intervals of at least two weeks between messages;

(b) For a subscriber whose name and address are unknown to the Licensee-by four SMSs that should be sent to the dormant subscriber in intervals of at least one week between messages;

(c) Notwithstanding the above-mentioned in Article (a)(2) and (b), if the subscriber's terminal equipment does not support the receipt of SMSs, the Licensee shall send the subscriber voice messages instead of SMSs, if the subscriber's terminal equipment supports the receipt of voice messages.

(d) The Licensee shall retain documentation of the sending of the notice to a dormant subscriber as follows:

(1) a copy of the letter sent via ordinary post;

(2) a printout of the log from the short message service center (SMSC), as specified in clause 60.6(c).²⁵¹

72A.4 The Licensee shall not disconnect²⁵² service to a dormant subscriber to whom a message was sent if the dormant subscriber notified the Licensee that he does not wish to disconnect from ²⁵³ services. The subscriber may send such a message either by telephone or in writing including by facsimile or electronic e-mail;

²⁴⁵  Amendment No. 46

²⁴⁶Amendment 87

²⁴⁷Amendment 87

²⁴⁸Amendment 87

²⁴⁹Amendment 87

²⁵⁰Amendment 87

²⁵¹Amendment 87

²⁵²Amendment 87

²⁵³Amendment 87

Notwithstanding the aforesaid, the Licensee may disconnect²⁵⁴ service to a dormant subscriber that notified the Licensee that he is not interested in disconnecting from²⁵⁵ services, after sending the subscriber at least two messages, as set forth in Article 72A.3 (a) and 72A.5 (a), and, in the second message, the Licensee notified the subscriber that if, within one year of the second message, the subscriber will not use the MRT service, service will be disconnected²⁵⁶ to the subscriber, and will not have to send another notification.

72A.5 The Licensee shall not be allowed to send a subscriber an additional notice regarding its request to disconnect²⁵⁷ service, except after one year of the date when the previous notice was sent to the subscriber.

72A.6 The Licensee shall save the telephone number of the dormant subscriber to whom service was disconnected²⁵⁸ for at least four (4)²⁵⁹ months free of charge,²⁶⁰ from the date of disconnection²⁶¹ of service termination, before returning the number to the telephone number pool of the Licensee itself or be returned to another MRT licensee that originally allocated the telephone number to the dormant subscriber. If, during this period, a written request is received from the dormant subscriber to renew the service, the Licensee shall renew the service under identical conditions to those that applied before service was disconnected,²⁶² free of charge.

72A.7 In the event of disconnection²⁶³ of service to a dormant Prepaid subscriber, that has a remaining balance, the Licensee shall refund the dormant subscriber for the remaining balance within 30 days after receipt of a written request from the dormant subscriber that proves that he is the owner of the line to which service was disconnected,²⁶⁴ if the request is received by the Licensee no later than six months after the service disconnection²⁶⁵ date.

72B Disconnection of a Service due to Recovery of the Network during a Malfunction²⁶⁶

72.1B The Licensee may disconnect or temporarily limit services that it is obliged to provide, in order to allow a quick recovery of the network at the time of a significant malfunction.

For this matter- "significant malfunction" – a malfunction that causes the disconnection of service to 10% of the subscribers or to at least 100,000 subscribers, the lower of the two.

²⁵⁴Amendment 87

²⁵⁵Amendment 87

²⁵⁶Amendment 87

²⁵⁷Amendment 87

²⁵⁸Amendment 87

²⁵⁹Amendment 87

²⁶⁰Amendment 87

²⁶¹Amendment 87

²⁶²Amendment 87

²⁶³Amendment 87

²⁶⁴Amendment 87

²⁶⁵Amendment 87

²⁶⁶Amendment No. 66

In this section, "subscriber" – including a subscriber of an MRT licensee in another network and a subscriber of a roaming licensee that use the network.

72.2B The Licensee shall submit for the Director's approval, a procedure and a detailed engineering process for the recovery of the network in case of a significant malfunction ("the procedure") within  15 days from the date of signature of this amendment.

72.3B During a significant malfunction the Licensee shall act in accordance with the procedure that was submitted to the Director or approved by the Director, the later of the two.

72.4B The procedure should include, inter alia, an initiated disconnection of services to subscribers that were not directly affected by the significant malfunction that shall begin no more than two hours after identification of the significant malfunction; this is in order to reduce the burden and the controlled reinstatement of regular and proper service.

72.5B The procedure shall allow, as much as possible,preferability  for regular and proper services for the security forces, public emergency services and hospitals, as will be decided by the Director.

73. Disconnection of Service due to Maintenance Procedures

73.1 The Licensee may temporarily disconnect or limit services which it is obliged to provide, if the requirement to execute vital actions of maintenance or if establishment of MRT Network obliges this (hereinafter “Disconnection due to Maintenance”), provided all the following exist:

(A) Duration of Disconnection due to Maintenance does not exceed twelve (12) consecutive hours;

(B) The number of Disconnections due to Maintenance does not exceed two (2) during one year;

(C) Cancelled²⁶⁷

73.2 The Director may require the Licensee to present a detailed explanation of the conditions which oblige Disconnection due to Maintenance, and the Director may require the Licensee to postpone the said Disconnection if he or she finds, after considering the Licensee’s arguments, that vital public interest obliges the said postponement.

73.3 Should it be required, due to the necessity to perform vital actions of maintenance or construction in the MRT System, to disconnect service for a duration of over twelve (12) hours, the Licensee will request a prior approval of the Director;  the request will specify the required maintenance actions and the actions taken by the Licensee in order to expedite these actions and to reduce as much as possible the duration of Disconnection of Service.

²⁶⁷Amendment No. 5

73.4 Cancelled.

73.5 Should Disconnection or limitation of service be required urgently for the purpose of vital and immediate activities, the Licensee will inform the Director immediately, including by telephone, telegram or facsimile message, about the urgent Disconnection or limitation;  the Licensee will inform its Subscribers about urgent Disconnection or limitation as stated above as early as possible, including through the MRT System public address service insofar as this is possible, and also through the public media.

73.6 Notwithstanding that stated in Paragraph 73.1, the Licensee is not obliged to notify the Director or its Subscribers as to Disconnection due to Maintenance if the following exist, and that the stated Disconnection  will not be counted in the count of Disconnections that is binding under Paragraph 73.1(b):

(A) The duration of the Disconnection due to Maintenance does not exceed half an hour;

(B) Disconnection due to Maintenance, as stated, occurs between 24.00 Saturday night and 0500 on the following Sunday morning.

Chapter F - Payment for Services

Section A - General

²⁶⁸73A. Definitions

In this Chapter:

“Air time” - the time during which a Subscriber receives MRT services, whether the communication was initiated by the Subscriber or by another;

"Air time unit"²⁶⁹- a time unit of no more than 12 seconds however as of 5 Tevet 5769 (1 January 2009) a time unit of 1 second.

“Basked of services” - a number of services marketed to the Subscriber in a package, for which a tariff has been set as prescribed in clause 75.2;

“Public shall include an International Communications System;

Telecommunications

Network”

“Payment for Call Completion”

a payment made by the initiator of a call, which commences at the Terminal Equipment connected to one Public Telecommunications Network and terminates at another Public Telecommunications Network or at Terminal Equipment connected to such a Public Telecommunications Network for the completion of the call on the other Public Telecommunications Network.

74. Types of  Payments

74.1 ²⁷⁰The Licensee shall be allowed to collect payments from its Subscribers for MRT Services, as follows:

(a) one-time installation fees for the connection of mobile or hand-held Terminal Equipment in the possession of the Subscriber, to the MRT Network, ²⁷¹(hereinafter: “Connection Fees”);

(a1) SIM card fee – a one-time payment for a SIM card (SIM);²⁷²

(b) a fixed monthly²⁷³ payment;

(c) payment for Air Time as specified in clause 75.10;

(d) payment for Call Completion as specified in clause 75A;

²⁶⁸  Amendment No. 5

²⁶⁹Amendment No. 29

²⁷⁰Amendment No. 56

²⁷¹Amendment No. 87

²⁷²Amendment No. 87

²⁷³Amendment No. 56

(e) Payment for Basic Services, Accompanying Services and Value Added Services, as specified in the First Annex to the License.

74.2²⁷⁴ The Licensee shall not be allowed to collect from a subscriber:

(a) Payment for initiating a call;

(b) Minimum payment for a call;

(c) ²⁷⁵²⁷⁶

74.3²⁷⁷ The Licensee shall collect payments from a subscriber in accordance with the following:

(a) In a One-time Transaction the payment for the services that are to be provided shall be executed by Pre-paid; the Licensee shall be allowed to collect all of the payment for this type of transaction retroactively.

(b) In an Ongoing Transaction the payment for the services that were provided shall be executed by Post-paid, however the Licensee shall be allowed to collect Pre-paid payment in an Ongoing Transaction, if the subscriber requests this, provided that the payment shall be executed in cash using vouchers that will be issued to the subscriber by the Licensee.

(c) In a transaction as specified in subclause (b), in which a monthly or other fixed periodic payment is collected from the subscriber for a bundle of services, in respect of the billing period during which an engagement was terminated or all services were suspended at the subscriber’s request, including when porting a number, the Licensee shall charge the subscriber, as the fixed payment as stated, according to the higher of the following:

(1) The ratio between the number of days from the start of the billing period until the termination of the engagement or the suspension date, as stated, on the date defined by the subscriber in his request, or until a maximum of one workday after the submission date of his request to terminate an engagement or to suspend all of the Licensee’s services, insofar as the subscriber did not define a date for terminating the engagement or for the suspension, as stated, and the inclusive number of days in the billing period;

(2) The higher ratio between the services included in the bundle of services and the number of units of the service consumed since the beginning of the billing period up until the termination date of the engagement or the suspension date, as stated, on the date defined by the subscriber in his request, or until a maximum of one workday after the submission date of his request to terminate an engagement or to suspend all of the Licensee’s services, insofar as the subscriber did not define a date for terminating the engagement or for the suspension, as stated, and the number of units allocated for the billing period.

²⁷⁴Amendment No. 56

²⁷⁵Amendment No. 57

²⁷⁶Amendment No.84

²⁷⁷ Amendment No. 84

(d) In a transaction as specified in subclause (b), in which a monthly or other fixed periodic payment is collected from the subscriber without a bundle of services, the Licensee shall charge the subscriber the fixed payment as stated, in respect of the billing period during which an engagement was terminated or all of its services were suspended at the subscriber’s request, including when porting a number, according to that specified in clause 74.3(c)(1).

(e) In a transaction as specified in subclause (b), in which a monthly or other fixed periodic payment is collected from the subscriber, the Licensee is not allowed to collect any payment from the subscriber for the timeframe before the activation of the SIMcard.

(f) In a transaction as specified in subclause (b), in which a monthly or other fixed periodic payment is collected from the subscriber, as a result of a subscriber’s switch from one tariff plan to another tariff plan, the Licensee shall charge the subscriber, as the fixed payment as stated, for the period as of the start of the billing period until the transaction execution date,²⁷⁸ according to the tariffs in the previous tariff plan, according to that specified in clause 74.3(c) or according to that specified in clause 74.3(d), as the case may be, while, for the period subsequent to the transaction execution date and until the end of the billing period, according to the ratio between the number of days from the day after the transaction execution date and until the end of the billing period, and the inclusive number of days in the billing period, according to the tariffs in the new tariff plan.

²⁷⁸Amendment No. 87

Section B - Tariff Changes

75. Setting the Tariffs and their Rates

75.1 The Licensee shall set tariffs for every service and Basket of Services which it provides to its Subscribers, and may determine the manner in which tariffs are to be linked to the index. The Licensee shall notify the Director of the amount of each tariff prior to its coming into effect.

75.2 The Licensee may set Baskets Of Services according to the classes of services including in the Basket, periods of time, or any other method. The Licensee may set a separate tariff for each of the services included in the basket, or may set an all-inclusive tariff.

75.3 The Licensee  shall offer each Basket Of Services on equal terms and under a uniform tariff according to classes of Subscriber; for the purposes of this clause “class of Subscribers” – a group of Subscribers the characteristics of which give reasonable grounds to justify its being distinguished from another group . .

75.4 The Licensee shall allow each Subscriber to change, without discrimination, from one Basket Of Services to another Basket Of Services which it is offered at that time. The Licensee shall include a provision to this effect in its service contract with the Subscribers. In the context of this provision, it may prescribe dates available for such change and may prescribe conditions, including payment, for effecting the change.

75.5 ²⁷⁹If the Licensee enters into an agreement with a Subscriber regarding a service or basket of services that includes a commitment as defined in Article 56A.1 (the "Commitment Period"), the following provisions shall apply, except for a Business Subscriber:

(a) The agreement conditions, except for the tariffs of the agreement, shall be final, known and set out in advance for the entire Commitment Period;

(b) The tariff for each service shall be set in the agreement, shall be constant and set out in New Shekels for the entire Commitment Period;

For this article, "constant"-each tariff before V.A.T. that the Subscriber must pay as set out on the day of the agreement, shall not be raised during the Commitment Period.

Notwithstanding the aforesaid, the Licensee may supply it services to Subscribers at lower tariffs than those set out beforehand in the subscriber agreement during a limited time period, to all it Subscribers or to a certain type of subscribers.

(c) The Licensee shall include provisions in accordance with the above-mentioned in the subscriber agreement.

75.6 The Licensee shall not make contracting with a Subscriber, or changing a subscriber from one Basked Of Services to another, conditional on the purchase of Added Value Services or Terminal Equipment from it.

²⁷⁹Amendment No. 47

75.7 Cancelled.²⁸⁰

75.8            (a) The Licensee may not collect any payment from a Subscriber for a call not initiated by the Subscriber (hereinafter: an “Uninitiated Call”).

(b) Notwithstanding the provisions of sub-clause (a), the Licensee may collect payment from the Subscriber for an Uninitiated Call in the following Cases:

(1) the call is transferred to the Subscriber via a roaming service;

(2) it is a collect call to which the Subscriber has agreed;

(3) a call made by dialing a number with a special access code for a free of charge service for the person initiating the call, that was allotted to the Subscriber in accordance with an agreement with him²⁸¹;

(4) Deleted²⁸²

²⁸³(c) The Licensee may charge a Subscriber, that initiates a charged call for services or for the following access codes, a charge that does not exceed the tariff that the Licensee charges the Subscriber for a call to a fixed line network:

1) Partially toll free service calls²⁸⁴

2) Business speed dial service²⁸⁵

(d) ²⁸⁶for a call to an international destination, the Licensee can only receive the payment imposed on the international operator that is set forth in the interconnect regulations.

²⁸⁷75.9 (a) Deleted²⁸⁸

¹Amendment No. 16

Effect- Article 75.9 shall take effect as of 15.12.02

²Amendment No. 54

75.10 The manner of determining payments for Air Time shall be as follows:

(a) The payment for Air Time shall be determined according to Air time unit²⁸⁹ ; for the purpose of calculating the payment, part of a Unit Of Air Time shall be deemed to be a full Unit of Air Time.

²⁸⁰Amendment No. 87

²⁸¹Amendment No.54

²⁸²Amendment No. 49

²⁸³Amendment No. 49

²⁸⁴In accordance with the service file "partially toll free calls" (1-700 service).

²⁸⁵In accordance with the Director's provisions "speed dial for businesses-star and four digits", dated 4 may 2008.

²⁸⁶Amendment No, 53

²⁸⁷Amendment No. 16

Effect- Article 75.9 shall take effect as of 15.12.02

²⁸⁸Amendment No. 54

²⁸⁹Amendment No. 29

(b) The payment for any airtime unit, at least for the duration of the first minute of the call, shall be constant;²⁹⁰

(c) For the purpose of payment, the duration of the call shall be from the time of establishing the connection between the Subscriber initiating the call (hereinafter: the “Calling Subscriber”) and the Subscriber receiving the call, until the time of terminating the call, which is the time that an instruction given to end the communication is received from the Calling Subscriber or the Subscriber receiving the call; the period of time spent in establishing the connection, until the time in which the contact is in fact established, and the period of time in disconnecting, from the moment an instruction is received to terminate the communication up until actual disconnection, are not included in the calculation of the duration of the call.

For the purpose of this sub-clause, a Subscriber receiving a call includes voicemail.

²⁹¹"Voice Mail"- a device or mechanism that is part of the MRT system, that is meant to allow the calling Subscriber to leave a voice message for the receiving Subscriber.

(d)²⁹² For a call that is transferred to Voice Mail, the Licensee shall play an introductory recorded message to the calling Subscriber, that is at least 2 seconds long (in this sub-section-"a message"), and will allow the calling Subscriber, in accordance with his choice, to disconnect the call without a charge, in the course of the Message, or within a reasonable amount of time that will not be less than 1 second after its termination ("reasonable time"). In this case, the timing of the execution of the call with the receiving Subscriber shall be as set forth in sub-section (c) above, as occuring after a reasonable time.

The Message text shall be "the call is being transferred to voice mail" and it shall be played in a clear manner and a reasonable pace.

In this sub-section, "a call that is transferred to voice mail"- except for          a call that originated in the International Bezek system.

²⁹³75.11      (a) In this article:

"Limited Package"- a package of minutes that is limited to a number of minutes, in accordance with the subscriber's plan.

"Unlimited Package"- an unlimited package of minutes for which the subscriber pays.

"Free of Charge Number"- a phone number that is determined that a call to it from any network will not be charged to the initiator of the call;

²⁹⁰Amendment No. 56

²⁹¹Amendment No. 39

²⁹²Amendment No. 39

²⁹³Amendment No. 70

"A Special Telephone Number at a Composed Tariff"- a national or network telephone number in an unusual numbering plan, for which the call tariff to it is a composed tariff;

"A Special Telephone Number at a Regular Tariff" – a national²⁹⁴ or network²⁹⁵ telephone number in an unusual numbering plan, for which the call tariff to it does not exceed the normal tariff;

"Unusual Numbering Plan"- a numbering plan that is not a regular numbering form;

"Usual Numbering Plan"-a numbering plan of geographic numbers and national numbers in accordance with the definitions in the numbering plan²⁹⁶.

"Composed Tariff"- a tariff composed of a regular tariff in addition to a tariff for service provided by the Licensee or someone on his behalf or a service provider;

"A Regular Tariff"- a tariff per minute for a call to telephone numbers in a regular numbering plan, in accordance with the subscriber's tariff plan.

(b) The Licensee will not charge a subscriber that calls destinations with free of charge numbers and shall not count the minutes of the call to those destinations as part of a limited package.

(c) The Licensee may charge a subscriber that calls destinations with special telephone numbers at regular tariffs and shall count the minutes of the call to those destinations as part of a limited package or as part of an unlimited package. For the avoidance of doubt, the Licensee may not charge a subscriber for calling destinations with special telephone numbers at regular tariffs any additional payment beyond the payment that he pays for a package of minutes, as long as the subscriber has not exceeded his quota of plan minutes. If the subscriber exceeds his quota of plan minutes, the Licensee may charge him for calling the said destinations in accordance with a tariff that does not exceed the regular tariff. In addition to the aforesaid, the Licensee may not distinguish between the tariffs that he charges the subscriber for calling telephone numbers with regular numbering plans and for calling special telephone numbers at regular tariffs, including by determining separate minute packages.

(d) If the charge for calls to destinations with special telephone numbers is done in accordance with a composed tariff, the Licensee shall count the minutes of the calls to said destinations as part of a limited plan or as part of any unlimited plan, for which the subscriber pays.

The Licensee may charge the subscriber for the services that are provided as part of calling telephone numbers that are charged according to a composed tariff, whether the charge is per minute of the call or whether the charge is a constant charge for a call, in addition to the regular payment for the package of minutes.

²⁹⁴ A telephone number that can be accessed from any network.

²⁹⁵ A telephone number that can be accessed only from the Licensee's network.

²⁹⁶ For example numbers in the 03-XXXXXXX, 05Y-XXXXXXX and 07Z-XXXXXXX

75A. Completion of a Call in another Public Telecommunication Network²⁹⁷

The payment which the Licensee shall collect for Call Completion shall not be greater than the interconnect tariff set forth in the Telecommunications Regulations (Payments for Interconnection) 57600-2000.

75B. Completion of a Short Message Service (SMS) in another MRT Network²⁹⁸

The Licensee may charge a Subscriber for transferring a Short Message Service, from Terminal Equipment connected to the Network to Terminal Equipment connected to an MRT system of another MRT licensee, payment that shall not exceed the payment the Licensee charges Subscribers for transferring a Short Message Service, from Terminal Equipment connected to the Network, to Terminal Equipment connected to the Network, in addition to a charge that shall not exceed the fee for transferring a Short Message Service as set forth in the Communication Regulations (Telecommunications and Broadcasting) (Payments for Interconnection), 2000.

In this Article-

“Short Message Service”- (SMS)   -  A telecommunication message that includes writing, including letters or signs, that are transferred from Terminal Equipment  connected to the Network, to Terminal Equipment connected to the Network or connected to an MRT system of another MRT licensee.”

75C. Temporary Provision²⁹⁹

Notwithstanding the above-mentioned in Article 75B, for the period beginning 9 May 2004 until 9 February 2005³⁰⁰, the following provisions shall apply:

(a) The Licensee may charge a Subscriber for transferring a Short Message Service, to Terminal Equipment connected to an MRT system of another MRT licensee ("Message between Networks"), payment that shall not exceed the payment the Licensee charges Subscribers for transferring a Short Message Service, from Terminal Equipment connected to the Network to Terminal Equipment connected to the Network, in addition to a charge that shall not exceed the fee for transferring a Short Message Service as set forth in the Communications Regulations (Telecommunications and Broadcasting) (Payments for Interconnection), 2000 minus a reduction in the amount of 0.7%³⁰¹.

(b) The Licensee may charge a Subscriber payment for a Short Message Service Between Networks as set forth in sub-section (a) even if the transfer to the receiving Subscriber has not been completed.

²⁹⁷Amendment No. 23

²⁹⁸Amendment No. 23

²⁹⁹Amendment No. 24

³⁰⁰Amendment No. 27

³⁰¹ The reduction in the amount of 0.7% is based on reports received from some of the MRT operators, regarding the rate of Short Message Services between Networks that did not reach their destination. Article 75C was set as a temporary provision, during which time the MRT operators shall carry out the necessary adjustments between their MRT networks and interconnection arrangements for the complete application of Article 75B of their license. For the avoidance of doubt, it should be clear that this temporary provision is set for a limited period of time only, due to the difficulties that MRT operators experienced regarding the possibility to receive information regarding the inability to complete a Short Message Service in another MRT network. However, it should not be inferred from this temporary arrangement to the matter of allowing collection of payment for a Short Message Service that did not reach it's destination, and it does not detract from the Ministry's basic position that as a rule, no payment shall be charged for a Telecommunication Service that was not completed.

Section B1 – Service Package in Israel³⁰²

³⁰³75D. Notice of Utilization of Services³⁰⁴ in Israel³⁰⁵

75D.1 Cancelled.³⁰⁶

75D.2 Notices regarding utilization of a service package

(a) If a subscriber purchases a service or a package of services for which a unit quota has been set, the Licensee shall notify the subscriber by SMS of his utilization ratio of the Quota of Units, when the subscriber utilizes 75% and 100% of the Quota of Units in the service package or of each of the services included therein. The SMS shall be sent to the subscriber as close to the time that the subscriber reaches each of the said utilization ratios. The SMS shall be sent to the subscriber’s telephone number and to an additional telephone number, insofar as the subscriber defined one at the time of his engagement with the Licensee. The SMS shall be sent at no charge, and shall include the utilization ratio of the package or the service, the date when the subscriber reached the said utilization ratio, while specifying the date and time when the utilization ratio was determined, the tariff for exceeding the service package or each of the services included therein, insofar as a deviation is permitted, and the last day of the billing period. The said information shall be specified as relevant according to the following:

(1) call minutes;

(2) SMSs;

(3) cellular data (in MB);

(4) integrated call minutes and SMSs;

(5) integrated call minutes, SMSs and cellular data.

In this regard, “service package” – a number of services being marketed to subscribers as a package at a fixed monthly payment, including domestic calls, an international call service, SMS service or cellular data service, when an inclusive Quota of Units is defined for the package,³⁰⁷ or if a particular Quota of Units has been defined for each of the services included therein,³⁰⁸ or if the subscriber set a consumption maximum for the package in order to control consumption.

³⁰²Amendment No. 87

³⁰³ Amendment No. 57

³⁰⁴Amendment No. 87

³⁰⁵Amendment No. 72

³⁰⁶Amendment No. 87

³⁰⁷ For example: in a package including 100 units of call minutes, SMSs and cellular data (in MB) for NIS 15, the subscriber shall receive an SMS according to his consumption in relation to all of the aforesaid services. For example: an SMS shall be sent after 75 units have been utilized and an additional warning message after 100 units have been utilized.

³⁰⁸ For example: in a package including 100 call minutes, 100 SMSs and 50 MB of cellular data for NIS 20, the subscriber shall receive an SMS according to his consumption in relation to each of the aforesaid services. For example: an SMS shall be sent after 75 call minutes have been utilized and an additional warning message after 100 call minutes have been utilized.

(b) Insofar as at issue is a international call service, the Licensee shall send notices as stated to the subscriber via the international system through which the calls are directed abroad.

(c) Insofar as at issue is a telephone line blocked from receiving SMSs, then voice messages shall be sent to the subscriber instead of SMSs. After hearing the voice message for the first time, the subscriber shall be given an option to hear it again by pressing a particular key, and the message shall be replayed for the subscriber as many times as he wants.

(d) The Licensee shall enable every pre-paid subscriber to receive updates at any time, free of charge, of the balance available to him and the expiration date of the budget available to him, by dialing a designated telephone number, after which the subscriber shall receive the said information either by voice message or by SMS.

75D.3 Consumption of a cellular data service by a subscriber who purchased a cellular data service

(a) When the subscriber reaches 100% utilization of the quota defined for the cellular data service, the Licensee shall suspend the cellular data service or slow the surfing speed. The Licensee shall sent an SMS to the subscriber at no charge, advising him about the suspension or slowdown of the service. If the Licensee enables the subscriber to continue surfing at a slower surfing speed, then it is not allowed to charge the subscriber for any additional payment beyond the fixed monthly payment for the cellular data service.

(b) The Licensee may continue providing the cellular data service to a subscriber for an additional payment after he utilizes 100% of the quota defined for the cellular data service, provided that the subscriber requested this explicitly, as specified in clause 60.6, during the billing period when he utilized 100% of the quota defined for the cellular data service; the Licensee shall document the subscriber’s explicit request as stated, shall retain the documentation in its possession, and shall make it available for delivery or forwarding to the Manager, upon his request, within five (5) workdays of the submission of the request.

When engaging in the engagement with the Licensee, the subscriber may refuse to continue receiving the cellular data service for an additional payment after he utilizes 100% of the quota defined for the cellular data service prior to the end of the billing period.

This shall be conspicuously stated in the advertisements of the relevant plans on the Licensee’s website, insofar as they are advertised on the website, and by a representative of the Licensee when conducting a sale conversation.

For example: in a package including 100 call minutes, 100 SMSs and 50 MB of cellular data for NIS 20, the subscriber shall receive an SMS according to his consumption in relation to each of the aforesaid services. For example: an SMS shall be sent after 75 call minutes have been utilized and an additional warning message after 100 call minutes have been utilized. 

(c) If a subscriber purchases a package that includes cellular data, which is comprised of a basic cellular data package and of additional cellular data packages for utilization if he utilizes all of the basic cellular data package before the end of the billing period, for which a quantity of service units and a price has been defined, the subscriber may completely cancel the purchase of the additional cellular data packages that it purchased at any time, in writing or orally, and the Licensee shall stop providing him the additional cellular data packages and shall no longer charge him in respect thereof as of the date of his request and thereafter.

This shall be conspicuously stated in the advertisements of the relevant plans on the Licensee’s website, insofar as they are advertised on the website, and by a representative of the Licensee when conducting a sale conversation.

(d) If a subscriber purchases a package that includes a basic cellular data package, the subscriber may ask the Licensee to block the access to the cellular data service at any time, in writing or orally, and the Licensee shall comply with his request.

75D.4 Consumption of a cellular data service by a subscriber who did not purchase a cellular data service

(a) The Licensee shall block cellular data surfing for a Non-Business Subscriber from who did not purchase a cellular data service with a surfing volume defined in an agreement between him and the Licensee.

(b) If the Licensee blocks the cellular data service as stated in subclause (a), the subscriber may contact the Licensee via telephone call with a service representative for the purpose of reconnecting the cellular data service, and the Licensee shall charge the subscriber according to the surfing volume that he ordered or consumed. The Licensee’s representative must advise the subscriber of the cellular data tariff per 1 MB. The subscriber’s request and documentation thereof shall be done as stated in clause 60.6.³⁰⁹

³⁰⁹ Amendment No. 87

Section B2 – International Roaming Service Package³¹⁰

³¹¹75E Charges for International Roaming Services

75E.1 Definitions³¹²in this article:

"arrangement"-	-	a package or plan that includes cellular data or calls or SMSs;313
“cellular data arrangement”	-	package or plan that includes cellular data;314
“call or SMS arrangement”	-	package or plan that includes calls or SMSs;315
"cellular data offer316"-	-	an offer of three packages or various plans that the Licensee may have that include data that have been offered to the Licensee's subscribers in the month preceding the month in which the package offers were sent to the subscriber;
“call or SMS arrangement offer”	-	an offer of three packages or various plans including a call or SMS service, insofar as the Licensee offers them, which have been offered to the Licensee's subscribers in the month preceding the date on which the arrangement offers was sent to the subscriber.317
"package"	-	a limited quantity of service units,  that can be used during a limited period through international roaming abroad, that are sold at a known and predetermined price and is valid for certain destinations
"abroad or destination"	-	a country, including a vessel at sea and an aircraft;
"Mb"	-	Mbyte
“blocked subscriber”	-	subscriber who did not request constant access to cellular data services on the service access form;
“open subscriber”	-	subscriber who requested constant access to cellular data services on the service access form;318
cellular data or cellular data service"	-	cellular data service abroad
"plan"	-	a tariff plan for a limited period of time or for a specific trip abroad319 for the use of services through international roaming abroad (for example: voice service, sending and receiving sms and cellular data) to destinations included in the plan and the payment for the services shall be made in accordance with the use; the service tariffs included in the plan are different from the tariffs for these services for a subscriber that did not enroll in the plan; the plan can determine a set payment that does not depend on usage

³¹⁰Amendment No. 87

³¹¹ Amendment No. 72

³¹²Amendment No. 87

³¹³Amendment No. 87

³¹⁴Amendment No. 87

³¹⁵Amendment No. 87

³¹⁶Amendment No. 87

³¹⁷Amendment No. 87

³¹⁸Amendment No. 87

³¹⁹Amendment No. 73

“Full tariff”	-	tariff per call minute, for an SMS and for 1 MB other than within the scope of an arrangement;
“Discount tariff”	-	tariff per call minute, for an SMS and for 1 MB within the scope of an arrangement.320

75E.2 Notices about utilization of an international roaming service package and about a full tariff for calls and SMSs

(a) An arrangement that a subscriber purchases shall come into effect on the date defined by the subscriber at the time of his purchase.

(b)        (1) The Licensee shall send test messages to a subscriber who purchases an arrangement, when the subscriber utilizes 75% and 100% of each of the following:

((a)) the number of service units or the defined sum of money defined for payment in respect of consumption of the services;

((b)) the period of validity of the arrangement.

(2) The test messages shall be sent at no charge, as close to the time that the subscriber reaches the said utilization ratio; the SMSs shall include notice to the subscriber that he reached the utilization ratios as stated, the number of service units remaining, the number of days remaining until the expiration of the validity of the arrangement, the calculation date of the utilization (date and time), the tariff for exceeding the arrangement, insofar as a deviation is permitted.

(3) In this clause, “service units” shall be according to the following:

((a)) calls – call minutes;

((b)) SMSs – the number of SMSs sent;

((c)) cellular data – the cellular data volumes in MB or GB.

(4) In packages bundling call services, SMSs or cellular data, the utilization ratio of the package shall be calculated according to the said service units.

(5) The Licensee shall send an SMS to a subscriber who did not purchase a call or SMS arrangement, or if the arrangement that he purchased does not include the destination he contacted, at no charge, immediately upon the subscriber reaching any destination as stated, that shall state that outgoing calls, incoming calls and the sending of SMSs shall involve payment according to the Full Tariff. The SMS shall also include a call or SMS arrangement offer.

³²⁰Amendment No. 87

(6) The Licensee shall document the SMSs referred to in this clause, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the day they were sent.

³²¹

(c) ³²²Notwithstanding the aforesaid in article 75E.2 (a)-

1) The Licensee shall be exempt from sending an SMS to a subscriber regarding  the utilization of the package that he purchased, as set forth in article 75E.2(b)(1)³²³ if the following apply:

(a) The subscriber purchased the package before March 31, 2014;

(b) The subscriber specifically agreed in writing to waive the receipt of an SMS as set forth in article 75E.2(b)(1)³²⁴;

(c) The Licensee proved to the satisfaction of the Director that a technological limitation that is not under its control prevents it from receiving an online indication or close to an online indication with respect to the execution of calls by direct dialing.

2) If a subscriber uses MRT equipment that does not support SMSs, including tablets with SIM cards and cellular modems, the Licensee will require the subscriber when he purchases the package an alternative means of communication (for example whatsapp, viber, skype applications, email or voice mail) ("alternative means"); if the subscriber provided alternative means, the Licensee will send the messages regarding said package utilization in article 75E.2(b)(1)³²⁵by alternative means.

75E.3 Blocking of cellular data service to a Non-Business Subscriber, to a Split Business Subscriber with cellular data via international roaming, to a blocked Business Subscriber and to a subscriber without a cellular data arrangement

(a) If a Non-Business Subscriber or a Split Business Subscriber that is charged in respect of cellular data service via international roaming (hereinafter – “Split Business Subscriber with Cellular Data Service via International Roaming”) or a blocked Business Subscriber purchases a package that includes cellular data, the Licensee shall block the access to the cellular data service after the full utilization of the package or upon the expiration of the validity of the package, whichever is earlier, at no charge, and the subscriber shall not be required to pay any payment whatsoever for the cellular data service beyond the payment known in advance for the package that it purchased. The Licensee shall send an SMS to the subscriber, at no charge, about the blocking as stated, shortly before the blocking date. The SMS shall include a cellular data arrangement offer.

³²¹Amendment No. 87

³²²Amendment No. 73

³²³Amendment No. 87

³²⁴Amendment No. 87

³²⁵Amendment No. 87

If a Non-Business Subscriber or a Split Business Subscriber with Cellular Data Service via International Roaming or a blocked Business Subscriber purchases a package that includes cellular data, which is comprised of a basic cellular data package and additional cellular data packages for utilization after the full utilization of the basic cellular data package, for which a number of service units and price has been defined for each of them, or which is comprised of a basic cellular data package, when after its full utilization or until it expires, the subscriber is charged according to a discount tariff, the subscriber may cancel the purchase of the additional cellular data packages that he purchased or the additional cellular data at a discount tariff that he purchased, at any time, in writing or orally, and the Licensee shall stop providing him the additional cellular data packages or the additional cellular data at a discount rate and shall no longer charge him in respect of cellular data as of the date of his request and thereafter.

The Licensee shall document the subscriber’s explicit request as stated, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the submission of the request.

When engaging in the order of the service from the Licensee, a Non-Business Subscriber or a Split Business Subscriber with Cellular Data Service via International Roaming or a blocked Business Subscriber may refuse to continue receiving the cellular data service for an additional payment after he utilizes 100% of the basic package defined for the cellular data service, as specified in clause 75E.2(b)(1).

This shall be conspicuously stated in the advertisements of the relevant plans on the Licensee’s website and by a representative of the Licensee when conducting a sale conversation.

(b) The Licensee shall block the access to cellular data service to any subscriber, at no charge, immediately upon his arrival abroad, unless the subscriber has fulfilled the conditions specified hereunder:

(1) the subscriber has a cellular data arrangement;

(2) the subscriber asked to be an open subscriber.³²⁶

(c) If a subscriber does not fulfill one of the conditions specified in subclause (b), and the Licensee did not block the subscriber to cellular data service, then the Licensee shall not charge the subscriber in respect of cellular data service.

³²⁶ An “open” status on the service access form, without a cellular data arrangement, is relevant solely to a Business Subscriber; a Non-Business Subscriber and a Split Business Subscriber with Cellular Data via International Roaming, without a cellular data arrangement, shall be blocked from cellular data as the defult mode.

(d) The Licensee shall block, at no charge, the access to cellular data service, as stated in subclause (b) and shall not charge a Non-Business Subscriber or a Split Business Subscriber with Cellular Data Service via International Roaming or a blocked Business Subscriber in respect of cellular data service, as stated in subclause (c), at any time that the subscriber, as stated, who purchased a cellular data arrangement, reaches a destination that is not included in the cellular data arrangement. The Licensee shall again reinstate the cellular data service immediately and automatically to the subscriber, as stated, and without the subscriber having to perform any manual operation, at any time that the subscriber is located in a destination that is included in the cellular data arrangement.

(e) The Licensee shall send an SMS to the subscriber as stated, at no charge, about the blocking as stated in subclauses (b) and (d), shortly before the blocking date, and shall specify the reason for the blocking and the ways to contact the Licensee in order to open the blocking. The SMS shall include a cellular data arrangement.

(f) The ordering of cellular data service by a blocked Business Subscriber, while it is abroad, after its access to the cellular data service had been blocked, in order to enable him access to cellular data service without purchasing a cellular data arrangement, shall be carried out through a telephone conversation with a representative of the Licensee, who shall advise the subscriber about the full tariff for cellular data per 1 MB. The access to the cellular data service shall be opened after the subscriber confirms the full tariff for cellular data that was quoted to him. Clause 60.6 shall apply to documentation of the order, and the documentation shall also include the subscriber’s verified identification particulars and his confirmation, as stated.³²⁷

75E.4          Cancelled.³²⁸

75E.5 Blocking of cellular data service to an open Business Subscriber³²⁹

(a) The Licensee shall send a test message, at no charge, to an open Business Subscriber who did not purchase a cellular data arrangement, or if the cellular data arrangement that he purchased does not include the country to which he arrived, immediately upon his arrival abroad, which shall include a warning about possible consumption of chargeable cellular data service, without the subscriber initiating any action to consume cellular data, and the message shall also include the tariffs for cellular data without a purchase of a cellular data arrangement. The SMS shall also include a cellular data arrangement offer.

The Licensee shall document the sending of the said SMS to the Business Subscriber, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the sending of the SMSs.

³²⁷ Amendment No. 87

³²⁸ Amendment No. 87

³²⁹ Amendment No. 87

(b) The Licensee shall send SMSs, at no charge, to an open Business Subscriber who purchased only a basic package whereby the tariff after the full utilization of the package is a discount tariff or a full tariff, and the messages shall include notice regarding the package utilization ratio, as stated in clause 75E.2(b), and the tariff, as stated.

The Licensee shall document its sending of the said SMSs to the Business Subscriber, and about the subscriber sending the said SMSs to the Licensee, if sent, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the sending of the SMSs.³³⁰

75E.6 The Licensee will notify its subscribers in the telephone bill following the date of signature of the license amendment, with respect to the possibility to request to be blocked for cellular data by filling out a "service access form" that appears on the Licensee's website. The subscriber may send the said form to the Licensee by regular mail, e-mail, fax or by an online form on the Licensee's website, if the Licensee's website supports this possibility.

75E.7 The Licensee shall display on its website information regarding the subscriber's ability to block access to cellular data also through the handset, as long as said blockage does not block the ability to roam in Israel.

75E.8 The Licensee shall display on its website information about services that consume chargeable data volume without an active initiated action by the subscriber, for example: automatic synchronization of e-mail and updates of different applications.

75E.9 Charges for international roaming services according to a rate per unit shall be done retroactively in the telephone bill, after consuming the services and not in advance. If a subscriber purchases an arrangement that includes a payment that is known in advance, the charge will be done for this payment in the bill for the period during which the transaction became effective.

75E.10 Without derogating from the aforesaid in Article 55A, Article 60.6 shall apply to "remote sales transactions" of services through international roaming services.

75E.11 The Licensee will send as soon as possible, free of charge, an SMS to each subscriber that purchases services through a remote sales transaction of services through international roaming services, that includes the main points of the transaction, and no later than the end of the day on which the remote sales transaction was made.

Insofar as the transaction for the purchase of calls or SMSs does not include destinations abroad, the said SMS shall advise that outgoing calls and the sending of SMSs to destinations abroad shall be charged according to the Full Tariff.

³³⁰ Amendment No. 87

The Licensee shall document the sending of the said SMS, as specified in clause 60.6(c), shall retain the documentation in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the transaction execution date.³³¹

In addition, the Licensee will note information regarding the said " remote sales transaction " in the telephone bill following the date of the execution of the transaction, in accordance with the billing period of the subscriber, that includes the telephone number for which the transaction was executed, the date of the transaction, the amount and types of services that were purchased through international roaming services, the number of days allocated for the use of the services, the date and time of beginning of provision of the services, the price of the services purchased, the price according to which the charge will be done for consuming the services beyond the package, if a package is purchased and the manner of rounding up every amount consumed (hereinafter- "transaction details").

The Licensee shall retain a copy of the Telephone Bill that specifies the details of the transaction in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the transaction execution date.

75E.12 In a transaction for the purchase of services through international roaming services that was done in the presence of the Licensee's representative and the subscriber, the subscriber shall be given at the time of the agreement execution a printed confirmation that includes the transaction details. The Licensee shall retain a copy of the confirmation as stated in its possession and shall make it available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the transaction execution date.³³²

75E.13 The Licensee will publish on its website all of the arrangements being marketed³³³ to private subscribers as well as the tariffs of all international roaming services for subscribers without arrangements, for all the destinations for which the Licensee has an international roaming agreement. The Licensee will not charge a subscriber for international roaming services that was done at a destination that was not published as set forth above before the charge.

75E.14 The tariff for cellular data will be noted by the Licensee every place where it is noted in units of NIS 1 per Mb.

75E.15 The cellular data tariff for 1 Mb for a subscriber that does not have a cellular data³³⁴ arrangement will be lower than the price of the cheapest package offered by the Licensee.

75E.16 The purchase of a cellular data³³⁵ arrangement, in Israel or abroad, does not change the default listed in the updated service order form except for the period of that cellular data³³⁶ arrangement.

³³¹ Amendment No. 87

³³²Amendment No. 87

³³³Amendment No. 87

³³⁴Amendment No. 87

³³⁵Amendment No. 87

³³⁶Amendment No. 87

76. Publication of Tariffs

76.1 The Licensee shall make available to anyone who requests, at the service offices and referral centers, and without charge, full and detailed information regarding updated tariffs for all its services including payment  for Call Completion; the Director may instruct the Licensee in regard to the manner and form in which tariffs are to be published, as aforesaid.

76.2 The Licensee shall specify in every account statement sent to the Subscriber, the Basket Of Services for which the Subscriber is being charged.

76.3 The Director may at any time require the Licensee to furnish him with details of the tariffs that it charges.

77. Deleted³³⁷

77A. Prevention of Fraud

77A.1 The Licensee shall take appropriate and reasonable steps to prevent fraud and shall establish a system for supervision and follow-up, in order to ensure, as far as possible, that calls for which a Subscriber is charged are in fact made from the Terminal Equipment that is connected to the MRT system of the Licensee in the Subscriber’s name.

77A.2 The Licensee shall disconnect the Subscriber’s Terminal Equipment from service after receipt at its service offices of a notification from the Subscriber that the Terminal Equipment has been lost or stolen, or that a suspicion exists that another is making calls though it without having received permission to do so; the Subscriber is permitted to give notification as stated by telephone or in writing, including fax and electronic mail; upon receipt of the telephone notification or immediately following receipt of written notice the Licensee shall verify its reliability, and shall disconnect the service.

77A.3 The Licensee shall cooperate with other Licenses in locating and preventing fraud.

³³⁷Amendment No 41

Section C – Amendments to Tariffs

78. Change in Tariffs³³⁸

78.1 Subject to that stated in clause 75, the Licensee may change a tariff or a number of the service units being allotted for a billing period (hereinafter – “the Number of Units”) of any service or bundle of services  (hereinafter in this clause – “service”) that it defines, provided:

(a) that it sent written notice to the Director between fourteen (14) and twenty-one (21) days before the effective date, in which it specifies the name of the service, the tariff or the new Number of Units, and their effective date, and the tariff or Number of Units prior to the change.

The obligation to send notice of a change to the Director shall not apply to a change defined from the outset in the engagement agreement, when the subscriber subscribed to the service or the service bundle.

(b) that it sent prior written notice to every subscriber who subscribed to the service, specifying the name of the service, the tariff or the new Number of Units, and their effective date, and the tariff or Number of Units prior to the change, between fourteen (14) and twenty-one (21) days before the effective date.

Notwithstanding that stated, with regard to a tariff reduction, the Licensee may send the notice to the subscriber up to one month after the reduction.

For the purposes of this section, “change” means – any change in tariff that could cause an increase or decrease in the pre-VAT payment that a subscriber must pay for the Licensee’s services or any reduction in the number of  service units allotted for a billing period, without a change in tariff.

(c) Notice as stated in subclause (b) shall be sent to a subscriber who has access to the receipt of SMS services via SMS and, to a subscriber blocked from the receipt of SMS services, by voice message. After hearing the voice message for the first time, the subscriber shall be given an option to hear it again by pressing a particular key, and the message shall be replayed for the subscriber as many times as he wants.

(d) The Licensee shall retain documentation of the sending of the notice as follows:

(1) a printout of the log from the server of the short message service center (SMSC), as specified in clause 60.6(c);

(2) recording of the voice message as specified in clause 106A.

³³⁸Amendment No. 41

The Licensee shall make the documentation of the sending of the notice available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the sending thereof.

(e) The obligation to send notice of a change to a subscriber shall also apply to a change defined from the outset in the engagement agreement, when the subscriber subscribes to a service or to a service bundle or to a tariff plan.

(f) The Licensee shall specify in the telephone bill that a change came into effect during his billing period, under the “bill details,” as specified in clause 9(a) in Appendix E.1,  the tariff or the new Number of Units and the effective date, and the tariff or Number of Units prior to the change.

The Licensee shall make a copy of the Telephone Bill available for delivery or forwarding to the Director, upon his request, within five (5) workdays of its production date.

(g) Insofar as the Licensee provided a service to a subscriber that is other than a voice or SMS or cellular data service, at a discount or for free for a defined period, including a service that is other than a telecommunications service, the Licensee shall send an SMS to the subscriber about the change in the tariff, as specified in clause 78.1(b), in which the subscriber shall be asked to send a reply SMS to the said SMS, which includes the digit zero (0), and this, if he is no longer interested in continuing to receive the service for a charge. If the subscriber sends an SMS to the Licensee, which includes the digit zero (0), then it is no longer allowed to continue or to start charging the subscriber in respect of the said service at the end of the said period. Documentation of the sending of the SMS by the Licensee to the subscriber shall be done as specified in clause 60.6(c), and the contents of the SMS shall be documented.

The Licensee shall make the said documentation available for delivery or forwarding to the Director, upon his request, within five (5) workdays of the sending of the SMS.³³⁹

79. Commencement of Increase or Reduction of a Tariff

If the amount of any tariff for MRT services pursuant to the provisions of the license has been raised or lowered, the increase or decrease shall not apply to payments made for such a service prior to the date of commencement of the increase or decrease; the increase or decrease shall apply only with regard to payments for MRT services that were provided to the Subscriber after the date of the increase of decrease. The provisions of this clause shall not apply in the case of an amendment of a tariff pursuant to the instructions of the Minister under clause 83.

80. Late Payments

80.1 The Licensee may charge a Subscriber interest, linkage and collection costs for payments for MRT services not paid by the Subscriber on the due date as specified in the  payment notice that was sent to the Subscriber, in accordance with the service contract³⁴⁰ between them (hereinafter: the “date of payment”).

³³⁹Amendment No. 87

80.2 Deleted³⁴¹.

80.3 The amount of interest charged shall not be greater than the amount set out in the definition of “interest linkage” in section 1 of the Interest Linkage Adjudication Law 5721-1961, together with linkage for the period between the date on which the payment is due and the date of  actual payment of the specified amount.

80.4 The Licensee shall be permitted to charge a Subscriber with payment for collection costs for a payment for services provided to the Subscriber that were not paid on the due date (hereinafter- "the amount due") on condition that at least fourteen (14) days have elapsed from the payment date, except in the case of non-payment due to refusal by a bank or credit card company to pay a charge which the Licensee has authorization to collect; The amount of collection costs that the Licensee will charge, shall be reasonable and relatative in regard to the amount due and the actions that the Licensee must take to collect the said amount.

For this matter, "collections costs"-including legal actions that the Licensee or anyone on the Licensee's behalf takes to collect the amount due before filing an  application with the courts.³⁴²

³⁴⁰Amendment No. 32

³⁴¹Amendment No. 41

³⁴²Amendment No. 32

Section D – Miscellaneous

81. Connection Fee³⁴³

(a) A connection fee and a SIM card fee shall be uniform, regardless of the type or model of the Terminal Equipment, the type of SIM card, the generation of the network technology to which the subscriber’s Terminal Equipment shall be connected, etc.³⁴⁴

(b) The Licensee may, should it resolve to charge a Connection Fee as defined in Paragraph 74(A), to charge the subscriber for a Connection Fee only for the initial connection of the Subscriber to the MRT System and provision of MRT System and provision of MRT services, or forconnection after the conclusion of an engagement pursuant to clause 69D.. ³⁴⁵

(c) The Licensee is not allowed to collect a connection fee from a subscriber as long as the connection of the Terminal Equipment has not been completed, including activation of the SIM card.³⁴⁶

81A. SIM card fee

(a) The SIM card fee must be reasonable relative to the cost of the SIM card to the Licensee.

(b) The SIM card fee shall be uniform regardless of the type or model of the Terminal Equipment, the type of SIM card, the generation of the network technology to which the subscriber’s Terminal Equipment shall be connected, etc.

(c) The SIM card fee shall not be included in the price of the Terminal Equipment, and shall be presented separately in the engagement agreement, in the subscriber’s telephone bill and in advertisements of a tariff plan on the Licensee’s website, if advertised

(d) Insofar as the Licensee shall charge the subscriber for a SIM card fee, it shall be allowed to collect the payment from him only as a one-time payment in the first telephone bill after the delivery or sending of the SIM card. If the Licensee does not do so, it shall not be allowed to collect the said payment from the subscriber subsequently, and it shall not be allowed to collect the said payment from the subscriber, or any other payment, if he does not return the SIM card as a result of termination of the engagement betweeen them.

(e) The Licensee is not allowed to collect a SIM card fee from the subscriber in respect of a replacement of the SIM card, due to a malfunction in it.

³⁴³Amendment No. 87

³⁴⁴Amendment No. 87

³⁴⁵Amendment No. 87

³⁴⁶Amendment No. 87

(f) The Licensee is not allowed to discriminate against a subscriber during the collection of a SIM card fee because he did not purchase the Terminal Equipment from it.

(g) Insofar as a subscriber has a SIM card that was issued to him by the Licensee, which had been used by the subscriber in the past and was disconnected due to the termination of the engagement, and the subscriber asks to activate it in order to resume being a subscriber of the Licensee, the Licensee shall do so and it shall not be allowed to collect a SIM card fee from the subscriber.³⁴⁷

82. Collection of a Connection³⁴⁸ Fee In Installments

The Licensee is permitted to collect the Collection Fee set out in Paragraph 82 for connection to the MRT System in a number of payments, on dates agreed with the Subscriber and in amounts set out in the service contract.

83. Harm to Competition or to Consumers

(a) If the Minister finds that one of the Licensee’s tariffs or a demand for payment to, or via the Licensee contravene the provisions of the License, then the Minister shall notify the License of such, specifying the required amendment and that in the event it is not amended the Minister shall exercise his authority pursuant to sections 5 and 15 of the Law; the Licensee shall furnish the Minister with written notification specifying the amended tariff and shall act to refund the extra amount, if any, to Subscribers charged according to the tariff prior to its amendment.

(b) If the Minister finds that one of the Licensee’s tariffs or a demand for payment to, or via, the Licensee are not reasonable or may cause harm to competition or to consumers, then the Minister shall notify the Licensee of such specifying the required amendment and that if it is not amended the Minister shall exercise his authority pursuant to sections 5 and 15 of the Law; the Licensee shall furnish the Minister with written notification specifying the amended tariff.

83A³⁴⁹ Overcharging

(a) The Licensee is allowed to collect payments from a subscriber only in conformity with that specified in its engagement agreement with the subscriber, and in conformity with the provisions of clauses 74.3(c) – 74.3(f)³⁵⁰;

(b) If a subscriber submits a complaint to the Licensee that the Licensee collected a sum in addition to the sum that it is allowed to collect pursuant to the engagement agreement (hereinafter – “Overcharge”), the Licensee shall clarify the subscriber’s complaint within ten (10) workdays of the date of receipt of the complaint. For the purposes of this clause, “complaint” – whether written or oral, including a subscriber’s inquiry to the Licensee to clarify the details of the charges; “date of receipt of the complaint” – in relation to a written complaint – the date of receipt of the complaint by the Licensee and, in relation to an oral complaint – the day the complaint was voiced to the Licensee.

³⁴⁷Amendment No. 87

³⁴⁸Amendment No. 87

³⁴⁹ Amendment No. 57

³⁵⁰Amendment No. 87

The Licensee shall document the contents of the complaint in its information system immediately upon its submission, and the outcome of the clarification of the complaint, immediately upon completing the clarification, and shall make this documentation available for delivery or forwarding to the Director, upon his request, within five (5) workdays of completing the clarification of the complaint.³⁵¹

(c) If the Licensee found that it had overcharged the subscriber, the Licensee shall refund the subscriber for the overcharge in a single payment, unconditionally, and shall refund the VAT in respect of the said sum, plus “linkage differentials and interest,” as defined in section 1 of the Award of Interest and Linkage Law, 5721 – 1961, from the collection and until the date of the actual refund, as specified hereunder:

(1) If the sum of the refund is higher than NIS fifty (50), the refund shall be transferred directly to the subscriber’s means of payment (bank account or credit card) within four (4) workdays of the end of the period prescribed in subclause (b). Notwithstanding that stated, the Licensee may refund the said refund to a Business Subscriber by crediting the next telephone bill, if the Business Subscriber expressly agrees to this.

(2) If the sum of the refund is NIS fifty (50) or less, the Licensee shall refund the refund by crediting the next telephone bill after the end of the period prescribed in subclause (b). If the sum of the refund exceeds the sum for payment in the next telephone bill as stated, the balance shall be transferred directly to the subscriber’s means of payment, within four (4) workdays of sending the telephone bill to the subscriber; the matter of the offset of the balance of the refund from the telephone bill or the matter of the transfer of the balance of the refund to the means of payment shall be stated in the relevant telephone bill;

(3) Notwithstanding that stated in subclauses (1) and (2), the sum of the refund to a pre-paid subscriber shall be refunded by increasing the balance available to the subscriber.³⁵²

(d) The Licensee shall issue a written response to the subscriber of his complaint within twenty-one (21) workdays of the date of receipt of the complaint. The response to the complaint shall include details of the rationale for rejecting the complaint and, insofar as the rationale relates to the terms of the engagement agreement, then the Licensee shall attach it to its response, refer to the clause therein pursuant whereto the charge was included in the telephone bill, and details of the mode of its calculation, or specifying the sum of the refund and details of its mode of calculation.

³⁵¹Amendment No. 87

³⁵²Amendment No. 87

(e)        (1) The Licensee shall document any subscriber complaint in its information system regarding an Overcharge, that was submitted in writing or orally.

(2) The Licensee shall retain a copy of its response, as stated in subclause (d), in its possession; if the Licensee sent its response via electronic mail or facsimile, the Licensee shall retain a copy of its response and a copy of the transmission confirmation (hereinafter – “Copy of its Response”).

(3) The Licensee shall make the complaint and the Copy of its Response available for delivery or forwarding to the Director, upon his request, within five (5) workdays of sending the response to the subscriber.³⁵³

³⁵³Amendment No. 87

Chapter G - Payments from the Licensee, Liability, Insurance and Guarantee

Section A - Royalties and Payments

84. Royalties

84.1 ³⁵⁴The Licensee shall pay royalties as set out in the Telecommunications Regulations (Royalties), 5761-2001 or any other regulations that may replace those (hereinafter: the “Royalty Regulations”).

84.2 The Licensee shall attach two copies of an unaudited quarterly income statement, signed by the Licensee and approved by an accountant, to any payment of royalties under this clause;  such statement shall include details of the calculation of dutiable income in accordance with the Royalty Regulations, and any other detail upon which the Licensee based the sum of the royalties.

84.3 Upon submission of an annual audited statement of income, signed by the Licensee’s accountant (hereinafter: the “Audited Statement”), the Licensee shall submit a statement set out by quarters, detailing the correspondence between the income in respect of which it paid royalties and the income appearing in the Audited Statement (hereinafter: the “Adjusted Statement”).

84.4 Where it becomes apparent that the  sum of royalties that the Licensee was required to pay under the Adjusted Statement is  higher than the sum paid by it for the quarter to which the Audited Statement relates, the Licensee shall pay royalty differentials, together with interest and linkage differentials as set out in the Royalty Regulations.

84.5 Where it becomes apparent that the sum of royalties that the Licensee is required to pay under the Adjusted Statement is lower than the sum paid by it for the quarter to which the Audited Statement relates, the Licensee shall be credited with the sum of the surplus payment;  surplus payments to which the Licensee is entitled shall be set off, upon written approval by the Director, against the next  royalties payment, and interest and linkage differentials shall be calculated in accordance with the last index published prior to the date of the setoff, as aforesaid;  for these purposes, interest and linkage differentials shall be as set out in the Royalty Regulations.

85. Delay in Payment of Royalties

The Licensee shall pay linkage differentials, arrearage interest and collection costs as set out in the Royalty Regulations, on royalties not paid in the time prescribed for their payment under said  regulations.

86. Manner of Payment of Royalties

Royalties and linkage differentials, arrearage interest, and collection fees therefor, shall be paid to the accountant of the Ministry of Communications by way of bank transfer into the account of the Ministry of Communications.

87. Other Obligatory Payments

The royalties under this section  shall be in addition to any fee, tax or other obligatory payment that the Licensee is required to pay under the provisions of any law.

³⁵⁴Amendment No. 14

Section B - Liability and Insurance

88. Definition of the Scope of Liability

In this section:

“Use of the License” - The establishment of an MRT System, its installation, subsistence, maintenance or operation, either by the Licensee or through its agent, including its employees, contractors, agents or representatives.

89. Liability of the Licensee

89.1 The Licensee will be liable, pursuant to all laws, for any case of death, damage or loss caused to a person or his property, either directly or indirectly, from Use of the License or as a result of its use.

89.2 In using the License, the Licensee will take all reasonable steps to prevent damage or loss to a person or his property, and should damage or loss be incurred as a result of the Use of the License, the Licensee will repair the damage at its expense and compensate the injured party, all pursuant to all laws, with the exception of a case regarding which the Minister has granted it immunity as set out in Paragraph 90.

89.3 For the avoidance of doubt, the provisions of this paragraph do not place liability on the Licensee beyond the damage liability set out in the regular Civil Wrongs Laws or detract from such liability.

90. Immunity from Liability

90.1 The Minister may, on request from the Licensee, grant it the immunities enumerated in Section 9 of the Law, wholly or partially, subject to the provisions of Paragraph 90.3.

90.2 The Licensee will detail in its request the immunities it requests and the reasons for so doing.

90.3 If the Minister is satisfied by the need to grant the Licensee immunities in accordance with Section 9 of the Law, he will publish his decision in the Official Gazette.

91. Drawing Up an Insurance Contract

91.1 The Licensee, at its own expense, will draw up an insurance contract with an authorized insurer in accordance with the provisions of Paragraph 92, and it will be presented to the Director at the award of the License.

91.2 The Licensee will indemnify the State for all financial liability, as set out in Paragraph 89.1, that the State will be bound to any third party as a result of the Use of the License; indemnification in accordance with this paragraph will be insured by the Licensee in liability insurance.

91.3 The Licensee will insure itself, including its employees and contractors, against any financial liability as set out in Paragraph 89.1, which might bind it pursuant to all laws as a result of damage caused to person or his property, from Use of the License and against any loss or damage caused to the MRT system, wholly or partially, from Use of the License, and including third party risk.

91.4 The Licensee will provide the Director with a legal opinion, written by an attorney specializing in insurance, that confirms that the insurance policy covers all the requirements set out in Paragraphs 91.2 and 91.3; the Licensee will append to the said legal opinion a copy of the insurance contract and its annexes; the said documents will be submitted to the Director within seven (7) days from the signing of the insurance contract and will be appended to this License as Appendix G to the Second Annex.

92. Conditions in the Insurance Contract

92.1 The insurance contract will determine the period of insurance and will contain a condition stipulating that at the end of the set period, the insurance will be automatically extended.

92.2 Once a year, the Licensee will present to the Director confirmation from the insurer that the insurance contract is valid, that the Licensee is not in arrears with insurance premium payments and that there are no pending notices regarding cancellation, suspension, limitation, amendment or termination of validity of the insurance contract.

92.3 The insurance contract will contain a stipulation, according to which in any event of the insurer wishing to cancel the insurance contract as a result of non-payment of insurance fees, he must inform the Director in advance, no less than ninety (90) days before he intends to actually cancel the contract (hereinafter in this paragraph “Cancellation Notice”).

92.4 Should a Cancellation Notice be sent as set out in Paragraph 92.3, the Licensee will take immediate action to remove the cause of the cancellation, or will take immediate action to obtain an alternative insurance contract as set out in Paragraph 92.6, and notify the Director of the action it has taken; should the cause of the cancellation be non-payment of insurance fees by the Licensee, the Director may make payment of said fees in its place, and may foreclose the bank guarantee or any part thereof to cover the expense incurred by payment of the insurance fees, or collect them in any other way.

92.5 Should the Licensee request the cancellation of the insurance contract, it will inform the Director in this matter within forty five (45) days at least before it intends to actually cancel the contract.

92.6 Should the Licensee agree to cancellation of the insurance contract by the insurer, or it has requested to do so itself, the Licensee will draw up an insurance contract with another authorized insurer in such a way that the new insurance contract will go into effect at the same time as the validity of the previous contract expires; the new insurance contract will be submitted to the Director, together with the legal opinion set out in Paragraph 91.4, at least thirty (30) days before it goes into effect, and it will be subject to the instructions in the paragraphs of this section.

93. Remedy for Breach of Insurance Conditions

Should the Licensee not draw up an insurance contract, or if it becomes clear that the insurance contract it drew up has been cancelled or it has expired, and the Licensee has not drawn up a new insurance contract as set out in Paragraph 92.6, the Director may execute the insurance in its place and pay the insurance fees, and may foreclose the bank guarantee to cover the expense incurred by payment of the insurance fees, or collect them in any other way; all of the above without derogating from the authority to cancel, limit or suspend the License because of non-execution of the insurance according to the conditions of this License by the Licensee.

Section C - Guarantee for Fulfilling the Conditions of the License

94. The Guarantee and its Objective

94.1 ³⁵⁵The Licensee shall forward to the Director General an unconditional bank guarantee from an Israeli bank/ autonomic insurance from an Israeli company (hereinafter – the "Guarantee") in favor of the State of Israel in NIS to ensure the fulfillment of the conditions of the License; the Guarantee amount, its phrasing and undertaking to extend the Guarantee shall be as stated in Appendix H to the Second Annex. .

94.2 The guarantee is used to ensure the fulfillment of the License conditions by the Licensee and their enforcement, and also for compensation and indemnification of the State for any damage, payment, loss or expense incurred or which may be incurred by the State, either directly or indirectly, as a result of non-compliance with the License conditions, wholly or partly, on their due dates and in full, or as a result of revocation of the License, its limitation or suspension.

95. Foreclosing the Guarantee

95.1 Without derogating from the generality of Paragraph 94.2, the Director may foreclose the guarantee, wholly or partly, if damage has been caused as a result of non-compliance with the conditions of the License, including every one of the following cases:

(A) Loss of income from royalties was caused to the State by a lack of income from subscriber payments, and as a result of the following:

(1) Non-operation of the MRT Services on the dates set in the schedule set by the Director, or as the Director approved;

(2) Termination of services, their suspension or limitation;

(3) Limitation of the License or its suspension;

(B) An insurance contract in accordance with Paragraphs 91 and 92 was not drawn up, insurance fees were not paid or the said insurance contract expired or was cancelled;

(C)  ³⁵⁶The Licensee charges its Subscribers with payments in contravention of the provisions of clause 75;

(D) The Licensee does not meet the coverage and quality requirements of the service as set out in Appendix B ³⁵⁷and Appendix E does not meet the requirements regarding the Passive Components and the cellular radio centers as stated in Clause 19.2C, or the Licensee constantly terminates, suspends or limits the service contrary to the provisions of the License;

(E) Cancelled;

(F) The Licensee constantly or maliciously breaches one of the provisions, conditions or requirements of the License;

³⁵⁵Amendment No. 83

³⁵⁶Amendment No. 14

³⁵⁷Amendment No. 83

(G) A claim is filed, or a demand for payment of compensation and damages against the State for a breach of a condition of the License or deficient implementation of the License or due to the cancellation of the License, and also if expenses have been incurred by the State as a result of the said claim or demand; foreclosure of the guarantee to cover the sum of the said claim will only be executed after the verdict in the said claim has become final;

(H) Royalties have not been paid on time and in full in accordance with Paragraph 74;

(I) Expenses or damages were incurred by the State as a result of the cancellation of the License;

(J) Deleted³⁵⁸;

(K) The Licensee has not completed the guarantee payments as set out in Paragraphs 96.2 and 97.2.

(L) The Licensee has not presented reports and notices as specified in Paragraphs 103, 104, 105, on the due date.

³⁵⁹(M) The Licensee has not paid the license fee on the date required, in accordance with the provisions of clause 40.1 of the terms and conditions of Tender No. 1/01.

(N) A monetary sanction under the Law has been imposed upon the Licensee and the sum required has not been paid on time, provided that a sum higher than the sum of the sanction shall not be forfeited

95.2 The Director may foreclose the guarantee in accordance with this section even for an expected breach of the License conditions or frustration of the License conditions that justify, in his considered opinion, early foreclosure of the guarantee.

96. Method of Foreclosure

96.1 The Director may foreclose the guarantee, wholly or partly, up to the sum specified therein, on condition that he has warned the Licensee that if within the period determined in the warning, the Licensee does not correct the act or omission that is the subject of the warning, the guarantee will be foreclosed, wholly or partly.

96.2 Should the entire sum of the guarantee or a part thereof be foreclosed, the Licensee will, on receiving the demand from the Director, immediately  provide a new guarantee or make up the remainder to the sum of the original guarantee; failure to make up the sum of the guarantee will constitute a serious breach of the License conditions, and the Director may - without derogating from his authority to revoke the License, limit it or suspend it - foreclose any remainder of the sum of the guarantee;

96.3 Regarding the Director’s decision to foreclose the guarantee, wholly or partly, the Licensee may appeal to the Minister within fifteen (15) days from the day he was notified of the Director’s decision.

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³⁵⁸Amendment No. 41

³⁵⁹Amendment No. 14

97. The Period of Validity of the Guarantee

97.1 The guarantee will be valid during the entire period of validity of the License and also during two years after the validity of the License expires.

97.2 Should the Director see that the Licensee has not cleared all its obligations in accordance with the License, and this within sixty (60) days prior to the expiry of the guarantee, the Director may demand that the Licensee extend the validity of the guarantee for a period determined by the Director or submit a new guarantee as aforesaid, and the provisions of this section will apply to the new guarantee as well; should the Licensee not submit a new guarantee as set out above, the Director may foreclose the guarantee.

97.3 Should the Director approve receipt of a new guarantee, the validity of which may be extended from time to time in accordance with his demand, the Licensee will extend its validity, before the end of the expected period, and this for a period ordered by the Director; should the Director not exempt the Licensee from the obligation to extend the period of validity, and the validity of the guarantee has not been extended on the said date, the Director may foreclose the guarantee without prior warning.

98. Preservation of Remedies

98.1 Foreclosure of the guarantee, wholly or partly, does not derogate from the authority to revoke the License, limit it or suspend it.

98.2 The sum of the guarantee does not limit the scope of the Licensee’s liability to the State for full payment of damages caused to it, and the obligation of payment applies to the Licensee in accordance with the License or all laws.

98.3 The whole or partial foreclosure of the guarantee does not derogate from the right of the Director to claim from the Licensee, through any other course, payment of damages it is obliged to cover in accordance with this License or to employ other remedies available to it according to all laws.

Chapter H - Supervision and Reporting

Section A - Supervision of the Licensee’s Activities

99. Authority for Supervision

The Director or a person authorized by him may supervise the activities of the Licensee in all matters pertaining to the implementation of the License and the observation of the provisions of the Law, the Ordinance and the Regulations therein.

100. Confidentiality

The Director and any person engaged in supervision activities on his behalf over the Licensee, will not disclose any information or document that comes into their hands in the course of their duties, to a person not authorized to receive them, unless they have been made public, or if the disclosure is necessary for the purpose of fulfilling their duties in accordance with this License and in accordance with all laws.

101. Entering Premises and Inspection of Documents

For the purposes of  the supervision as set out in this section, the Director may:

(A) Enter, at any reasonable time, any installation or office serving the Licensee for the purpose of provision of its services in accordance with this License;

(B) Conduct measurements and tests in the MRT System and he may examine any record, document, plan, account book, ledger or data base, regular or computerized, of the Licensee or whomever is employed by it in the matters on which the Director has the said supervisory authority; the Director may examine and copy them in any way he deems fit.

102. Cooperation

The Licensee will cooperate with the Director in all matters concerning the execution of the supervision over its said activities, and without detracting from the generality of the above, it will enable them the execution set out in Paragraphs 100 and 101 and will provide them, on request, any information in its possession or under its control that is required for execution of the supervision.

Section B - Reporting and Fault Repair

103. Obligation to Submit Reports³⁶⁰

103.1 The licensee shall submit to the director the reports detailed in this license, in a format and on the dates set forth in this section.

103.2 Each report should reflect the correct and relevent facts regarding the subject of the report so that they are updated to the report period.

103.3 A report should be submitted in two (2) copies, printed and formattted in a manner that is easy to read and will  bear the date of its compilation and the signature of the licensee or anyone that has been authorized to do so; the report should be submitted in a format to be advised by the director, including regarding the contents, the structure and the method of submission of the report.

103.4 The director may require the licensee to redraft or supplement a report it has submitted, including in cases where the director has found that it is lacks necessary details or other details that in the director’s opinion the licensee should have included in the report.

104. Types of Report and their Submission Date³⁶¹

104.1 The licensee shall submit to the director upon his request or at least annually, at the end of the calender year, and no later than ninety (90) days, the annual reports that describe the activities during the period from the month of January until the month of December, of the previous year:

(a) An audited financial statement signed by an accountant

(b) A subscriber report, including the following data:

1) The amount of private and business subscribers as well as post-paid and pre-paid subscribers;

2) The scope of income in the segmentation set forth in sub-article (1), so that the income from interconnect appears separately for each one, and in addition, a division according to airtime and value added services.

(c) A report regarding use of frequencies in accordance with Chapter 4 section C;

(d) Annex A- “The Licensee’s Details” updated, at the beginning of the month of January, as detailed in article 20.1;

(e) ³⁶²Outline engineering report- an engineering report for the erection, development and upgrade of the network in the format set forth in Appendix B.

³⁶⁰Amendment No. 41

³⁶¹Amendment No. 41

104.2 The licensee shall submit to the director on a quarterly basis, and no later than one month after the end of the quarter, the following reports:

(a) A reviewed quarterly financial statement, signed by an accountant;

(b) A reviewed quarterly income report, signed by an accountant, that includes all of the income that bears   royalty payments;

(c) A traffic report-in a format to be advised by the director.

104.3 The licensee shall submit to the director a report for extraordinary events, as set forth in regulation 8 of the Supervision Regulations.

104.4 The licensee shall submit to the director the following reports, upon his request:

(a) Deleted³⁶³

(b) A fault report- that contains a summary of the network faults, details of the amount of faults and the accumulated time of each type of fault, an analysis of the faults and details of the steps taken to rectify them;

(c) A quality of service report-an analysis of the licensee meeting the requirements in articles 49 through 51 and Chapter E the level of service for a subscriber, during the period of the report;

(d) A complaint report- that contains details of all the written complaints that were submitted by subscribers regarding service including the subject of the complaint, the dates it was received and was responded to in writing, the manner in which it was handled, and details of the actions of the complaint officer;

(e) Details of the licensee’s tariffs;

(f) Deleted³⁶⁴

(g) A lien report- the licensee shall report  immediately to the director in any case of an attachment or lien on one of the licensee's assets or in case of a lien on the means of control in the licensee, exercise of such a lien or termination of any right of the licensee over the asset;achment or lien on one of the licensee's assets or in case of a lien on the means of control in the licensee; exercise of such liens or termination of any right of the licensee over the asset; In addition, the licensee shall submit to the director, upon his request, a report that sets out all of the afore-mentioned liens;

(h) A subscriber summary report, income and minutes according to private and business subscribers, and in each category-a division of subscribers according to plans priced as “all inclusive” tariff and subscribers in plans priced separately for payment of “airtime” and interconnect, in a format to be advised by the director;

³⁶²Amendment No. 71

³⁶³Amendment N. 71

³⁶⁴Amendment No. 71

(i) A harassing subscriber report as set forth in article 65A.9;

(j) Any additional data that should be required in order to supervise the activities of the licensee as well as any necessary information that the office requires in order to administer telecommunication matters.

104.5 The director may add or remove periodic, quarterly or annual reports as well as require the licensee to submit special reports, as advised.

105. Notice of Defect³⁶⁵

105.1 If the Director found defects or deficiencies in the Licensee’s activities, the Director shall notify it of this in writing (in this clause – “the Director’s Notice” or “the Notice.”

105.2 The Licensee shall deliver its response to the Director in writing, within the timeframe defined by the Director in the Notice. If the Director did not define a timeframe for the Licensee’s response, the Licensee shall deliver its response to the Director by no later than thirty (30) days of its receipt of the Director’s notice. In its response, the Licensee shall specify the means it took to rectify the defects and deficiences specified in the Notice and to prevent their recurrence.³⁶⁶

106. Deleted³⁶⁷

106A. Retention of documents and recordings

(a) The Licensee shall retain documents and recordings in its possession concerning the terms of the engagement with the subscriber for the entire duration of the engagement and for one year after the termination of the engagement.

(b) The Licensee shall deliver or forward to the Director, upon his request, any document or recording concerning the terms of the engagement with the subscriber, and this, on the date, in the format and in the mode that the Director shall instruct.³⁶⁸

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³⁶⁵Amendment No. 41

³⁶⁶Amendment No. 87

³⁶⁷Amendment No. 41

³⁶⁸Amendment No. 87

Chapter I  - Miscellaneous

107. The License as an Exhaustive Document

107.1 The rights of the Licensee, its obligations and powers in all matters pertaining to the establishment, subsistence and operation of the MRT System and the provision of services through it, originate in this License and they derive from it and are in accordance with it only.

107.2 The Licensee will be precluded from claiming the existence of any right, obligation or authority based on information, promise, undertaking, representation, proposal, publication, minutes, discussion or declaration that were made outside the License, either in writing or orally, either prior to the award of the License or after it was awarded, with the exception of the interpretation provided by the Minister in accordance with Paragraph 6.

108. Holding the License Documents and their Return

108.1 The Licensee will hold the License documents in an office and will allow the public to examine their true and updated copies; should a License condition be changed, the Licensee will append the text of the change to the said License documents.

108.2 369Where the License and the documents related to it are on public display, the public shall not have the opportunity to inspect the following documents, contained in the Second Annex of the License:

(a) Appendix  A – Details of the Licensee;

(b) Appendix B-The engineering plan that is attached to Appendix B³⁷⁰;

(c) Deleted³⁷¹

(d) Appendix  G – Insurance Contract;

(e) Appendix  H – Bank Guarantee;

(f) Appendix  I – Letters of Undertaking;

(g) Appendix  K – Special Services for Security Forces;

(h) Appendix  L – Security Instructions.

108.3 The License documents are the property of the State and are entrusted to the Licensee for the period of the License’s validity; should the License be revoked or expire, the Licensee will return the License and all its documents to the Director.

³⁷²108.4 The Licensee shall allow the public to inspect the documents of the License via the internet;  the Licensee may also do so through  the Ministry of Communications’ internet site as  long as the Ministry of Communications publishes the License on its internet site.

³⁶⁹Amendment No. 14

³⁷⁰Amendment No. 41

³⁷¹Amendment No. 41

³⁷²Amendment No. 14

³⁷³108.5 The Ministry may publish the License, other than the Appendices  set out in clause 108.2, on such date and in such manner as it sees fit.

109. Deferment of Date

109.1 If an obligation imposed on the Licensee in this License has a set date for its fulfillment, the Licensee will fulfill it on that date.

109.2 The Director may, upon the Licensee’s request, defer a date set as stated above, if he deems that fulfillment of the obligation on that date is impossible for reasons of force majeure.

110. Responsibility

The approval or supervisory authority conferred upon the Minister or the Director in accordance with this License, including the employment of the said authority, does not impose on them any responsibility whatsoever, that is imposed in accordance with this License on the Licensee, and it does not harm or detract or remove or diminish the responsibility of the Licensee as stated above.

111. Dispatch of Notice

111.1 A notice pertaining to this License or its implementation will be given in writing and be delivered by hand or by registered mail with confirmation of receipt; a notice dispatched by registered mail as stated above shall be deemed to have reached its destination within forty-eight (48) hours of its dispatch.

111.2 Any notice from the Licensee to the Minister will be delivered or dispatched through the Director.

111.3 For the purpose of receiving notices in accordance with this paragraph, the Licensee’s address is: 8 Amal Street, Afek Industrial Park, P.O. Box 435, Rosh Ha’ayin, P.O. Box 48103³⁷⁴;  the Licensee will inform the Director of any change of address immediately.

112. Operation in the ³⁷⁵Judea and Samaria Civil Administration Area

112.1 The Licensee shall contact the communications staff officer in the Judea and Samaria Civil Administration Area for the allocation of frequencies, the expansion of its license in the Judea and Samaria areas, for the expansion of the MRT system and for the provision of 4^th Generation services in the areas in which the authorities in the telecommunications sector are of the Civil Administration.

112.2 The Licensee will operate in the Judea and Samaria areas in accordance with the license and frequencies allocation from the communications staff officer of the Civil Administration; the frequency allocation and the license in the Judea and Samaria area, including the deployment, the minimum requirements and the service level to the subscriber shall be mostly based on the allocation terms in Israel and the provisions of this license, mutatis mutandis, as shall be determined by the Civil Administration manager and in accordance with the law and the Security Legislation applicable to the Judea and Samaria areas, including the need to receive an individual approval for the establishment of each telecommunications facility.

113.³⁷⁶ Cancelled.³⁷⁷

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³⁷³Amendment No. 14

³⁷⁴Amendment No. 4

³⁷⁵Amendment No. 83

³⁷⁶Amendment No. 57

³⁷⁷Amendment No. 87