RAMALLAH, Sept. 27 (Xinhua) -- Israel has warned the Palestinian National Authority (PNA) that it would release frequencies for a second mobile operator to operate in the West Bank if the PNA dropped an appeal against Israeli forces at the International Criminal Court (ICC), an Israeli newspaper reported Sunday.

    The report, published by Tel Aviv-based Ha'aretz daily, said the new Israeli offer was motivated by tension following the PNA call on the ICC to examine "war crimes" that Israel Defense Forces(IDF) allegedly committed during a massive offensive in the Gaza Strip.

    Israel fears a possible action by the ICC after a UN fact-finding mission, led by South African prosecutor Richard Goldstone, charged it on Sept. 15 with committing war crimes in Gaza during the three-week onslaught that ended in January.

    However, Palestinian Minister of Communication, Mashhour Abu Daqqa, said the PNA "didn't receive any official warning from Israel conditioning the permission of a second cellular telephone provider to operate in the West Bank" and the Gaza Strip.

    Abu Daqqa considered the report as "a cheap blackmail to force the Palestinians to withdraw their appeal at the ICC."

    The Wataniya Palestine has been waiting for Israel to allow its operations in the Palestinian territories for months.

    Abu Daqqa said the cash-strapped PNA is obliged to pay a penalty of 500 million U.S. dollars for the company if Israel did not release its frequencies by Oct. 15.

    The half-billion amount was invested by the Kuwaiti-Qatari venture in preparing for the infrastructure and getting the license to operate in the Palestinian territories.

    The issue of Wataniya Palestine is at the center of talks between Israel and the PNA which has asked the international Quartet to intervene and press Israel to okay the launching of the mobile project.

    Abu Daqqa said Israel cites "security excuses in order to weaken the economic growth" and prevent the Palestinians from using additional frequencies.

    On the spectrum, Israel uses 37 MHZ and the Palestinians only use 4.8 MHZ, according to Abu Daqqa.