The Ministry of Communications is considering reducing the bandwidth offered to future buyers of LMDS frequencies, making the purchase of these bands possible for the cable companies and Bezeq as well, TheMarker has learned.

This will make things easier for competition in the local market. Shrinking the frequencies spectrum is the same as reducing the areas of demand for the service, which could be why this is viewed as a call to open the market to competition, though gradual and in the business rather than in the private sector.

The Ministry sees the LMDS market as a niche, and does not see it as the main means of competition against Bezeq. The ministry, a great fan of the cable merger, believes that role is for the cable companies.

The ministry is disappointed with cellular operator Cellcom's decision to withdraw from the LMDS tender. However, the ministry still maintains that the fact the state owns the frequencies means the state has to be the regulator of competition in the local calls market.

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The ministry does not intend to drop the issue, and it therefore tends to draw more lenient conditions for the new tender and to make qualifying easier in general.