The change is being implemented by COGAT's Civil Administration in Judea and Samaria.
"We continue to promote communications and cellular services for the benefit of all residents, and the upgrading of the network constitutes a significant improvement to the internet network, which will be felt quickly by customers," Dudu Cohen, director of the Communications Unit at the Civil Administration, said.
The company has 1.5 million customers. Over 363,000 people use Paltel's landline services.
Paltel describes itself as "the leading telecommunication company in Palestine, providing the latest technology and solutions for both residential and business segments."
Colonel Sharon Biton, head of COGAT's Civil Department, said the upgrade will resemble a "quantum leap."
The Civil Department is tasked with economic development and medical coordination with the help of the Palestinian Authority.