Barak International Communications yesterday informed the Communications Ministry that it wuil not be bidding for wireless LMDS frequencies to provide domestic communication services.

Barak's decision follows the ministry's refusal to amend the tender terms. Barak also said yesterday that it might reconsider bidding for spectrum if the ministry changes its mind and amends the tender terms in keeping with the climate in the telecommunications industry.

Barak opines that the ministry should create conditions conducive to competition in the domestic arena. It has to create conditions that would allow sizeable communications groups to form, that could provide the public with a variety of communication services - mobile, international, data and Internet.

"It is hard to raise investments for communications today. Foreign investors are not lining up to invest in Israel. If the government doesn't aid investors, it will remain with a government monopoly (the Bezeq phone company), which will jeopardize the concept of a competitive telecom market," said Avi Patir, Barak CEO.