Palestinian telecom experts are cautiously hopeful that US interest in their campaign for 3G access could unlock the industry’s financial and creative potential. The Palestinian Authority (PA) years ago authorized the mobile providers Jawwal and Wataniya to provide 3G services, but for them to do so also required agreement by Israel to allow them access to the necessary frequencies and to import equipment. The Israelis have for six years rejected their requests.

When US President Barack Obama, a Blackberry enthusiast, visited last month, a Palestinian media consultant plastered West Bank cities with posters reminding him to leave his smartphone at home.

The stunt attracted the attention of US media, and according to its creator, Maher Alawneh, inquiries by US officials. During his visit, Obama referred to the West Bank tech sector, praising the “talent and entrepreneurial spirit of the Palestinian people.” Sabri Saidam, an IT adviser to Palestinian President Mahmoud Abbas, said he hopes the attention will translate into action. “I hope that the US administration will put pressure on Israel. Telecommunications can be the first income generator in Palestine,” he told Al-Monitor.

The PA, currently facing one of its worst budget crises, estimates that it is losing $150 million each year in tax revenue because Palestinians use Israeli providers, who offer services that Palestinian companies cannot. Private sector growth would relieve some of the pressure on the West Bank economy, which is aid dependent and heavy on the public sector. Having 3G access would also boost Palestinian start-ups that have already developed successful smartphone apps, said George Khadder, a co-founder of the tech-entrepreneur network Peeks (slang for "Palestinian geeks"). A sustainable Palestinian tech industry must include local innovation, as well as provide outsourced services, Peeks argues.