Quartet Representative Tony Blair today welcomed a deal with mobile phone company Wataniya which will provide a "much needed boost" to the Palestinian economy.

The Palestinian Authority and the Government of Israel have signed a Frequency Allocation Agreement that will now enable Wataniya, the second mobile telephone operator in Palestine, to begin operations.

The Wataniya deal is one of the economic measures promoted by Quartet Representative Tony Blair to provide revenue and employment for the Palestinians.

As a result of the frequency allocation, Wataniya will begin procurement of the equipment to begin operations by the beginning of 2009.

Welcoming the agreement, Tony Blair said: "This deal will provide a much needed boost to the Palestinian economy.

"It will involve an injection of funds to the PA of over $254 million in license fees, with an immediate transfer of at least $80 million to the PA. Wataniya will also invest more than $700 million in Palestine over ten years, hire 750 Palestinians and generate at least 1,500 jobs in indirect employment.

"This is welcome news as we continue to work to improve the economic and humanitarian situation in the West Bank and Gaza."