Israeli Knesset Approves Radio Reform Extending Regional Licenses Until 2033 Without Fees

The Israeli Knesset approved a significant radio reform law in a second and third reading vote of 31 to 17. The legislation, spearheaded by Communications Minister Shlomo Karhi (Likud) and advanced through a private members' bill, transitions the current system of regional commercial radio station licenses to a nationwide private radio licensing regime starting in 2033. Until then, existing regional station licenses will be extended without any payment.

Despite opposition from professional bodies within the Ministry of Communications and the Budget Department of the Finance Ministry, and after heated debates in the Economic Affairs Committee, the law passed. Critics warned of risks including politicization of media regulation, legal and professional challenges, and insufficient professional groundwork. They also cautioned that the reform might delay market competition in the radio sector.

A controversial amendment was introduced shortly before the committee vote, weakening protections for public broadcasting frequencies. The original bill prohibited reducing frequencies from any broadcaster if it harmed their coverage or reception quality. However, a last-minute insertion of the word "material" limited this protection to only "material harm," potentially allowing frequency transfers from public broadcasters like Kan 11 and Galei Tzahal to private entities.

Under the approved law, from January 1, 2033, commercial radio stations may broadcast nationwide without geographic restrictions, similar to current public broadcasters. The reform replaces the current license system with a single 18-year license term and maintains existing content regulations. The first tender for nationwide licenses will be published three years before the current licenses expire, contingent on frequency availability.

Additionally, the Second Authority for Television and Radio will review licensees’ compliance every six years. The law also empowers the Communications Minister to set tender criteria beyond financial bids, including quality and experience metrics, after consulting relevant authorities and with Economic Affairs Committee approval. If the minister fails to issue regulations, the authority council assumes this role, but the minister retains regulatory powers for subsequent tenders.