Mr. Sabih Masri chaired Paltel Board of Directors third session for the current year to discuss the balance sheets and financial statements of the company for the first quarter of 2005. Board of Directors expressed their satisfaction for the remarkable performance of the Group and asserted the importance of encouraging stimulant factors leading to such level of performance in the future. Board of Directors also discussed the ADSL and the reduction campaigns that unified Palestine into one single Telecommunication area by employing one domestic tariff to all national calls which makes Palestine Telecommunication Company the first Arab Telecommunication Company to apply this strategy.

Board of Directors also reviewed the current situation of Jawwal network and the complexity for bringing in and installing the equipment in different areas. Board of Directors congratulated the executive management at Jawwal for reaching up to 50,000 subscribers and it encouraged bringing in more equipment to reach to one million subscribers. In addition, Board of Directors insisted on the importance of upgrading the quality of services and alleviating the high load on the network. They hoped that the Palestinian Authority will support Palestine Telecommunication Company installing and putting in operation the released equipment.

During the session, Board of Directors approved the new organizational structure of Palestine Telecommunication Company. Board of Directors will supervise all the companies of the Group: Palestine Telecommunication Company Ltd (PALTEL), Jawwal, HADARA and PAL-Media.

Board of Directors discussed the reality of the Palestinian Telecommunication and the illegal and un-authorized competition of the market. Board of Directors studied the possible ways to face this competition showing their full support to the latest significant efforts of the Executive Board to face the prejudice of the Israeli companies against Palestine Telecommunication Company. Board of Directors also discussed the issue of the new carrier (The Sixth Carrier) in the Palestinian Telecommunication market and the issue of the new license. Palestine Telecommunication Company Board of Directors stated that Paltel is ready for any new clean competition with any national carrier. The company will be the main beneficiary of competition especially if the Palestinian Authority could obtain the needed frequencies for Jawwal, bring out the Israeli carriers of the Palestinian market and deal more seriously with the problems facing both Palestine Telecommunication Company and Jawwal. Paltel’s Board of Directors asked The Ministry of the Telecommunication and Information Technology to take the needed steps to solve all pending issues in the Telecommunication market and propose the needed support to Palestine Telecommunication Company and Jawwal.