Three months after the infuriating statement by a CEO of one of the cellular phone companies that they intended to erect antennas in areas where compensation payments to local authorities would be lower, TheMarker has learned that the forum of cellular companies has received an economic study on the matter.

The report, prepared by Dr. Yaakov Sheinin, the CEO of Economic Models, deals with the question of investment in the antennas and the possible ramifications of the compensation that the cellular operators would have to pay for lowered property values due to the placement of the antennas.

The amount of money the companies would have to pay to local authorities, in order to compensate property owners who live near their antennas, has not yet been determined. The intention is to demand that the companies pay 100 percent of the reductions in the land values.

“It is completely clear that in such a case, we will set up fewer antennas,” said the cellular CEO, in an interview with TheMarker three months ago. “The radiation produced by the cellular handsets will only increase, and the antennas will be built in areas where the price of compensation is lower. You can understand for yourself that we are not talking about wealthy neighborhoods.”

While the law relating to non-ionizing radiation was passed at the end of 2005, the question of compensation has still not been settled. The National Planning Council is supposed to establish the level of compensation, but has not yet done so. Apparently the reason for this is that the head of the council, Ram Belnikov, who is also the director general of the Interior Ministry, has recused himself from dealing with the matter due to potential conflicts of interest based on his own former business dealings.

Neither the council or the ministry are pushing the matter, since the present situation is convenient for all sides.

The local authorities have achieved what they wanted: They receive 100 percent compensation, based on a temporary decision by the council. Meanwhile, the cellular companies are hoping the issue will not return to the headlines, and know that a final decision on the matter will require them to make significant write-offs on their financial reports, which could hurt their credit ratings.

This story is by: Eran Gabay