International telephony services provider Xfone Communications Ltd. (TASE:XFN) is seeking to expand into cellular services and has applied to Minister of Communications Ariel Atias for a mobile virtual network operator (MVNO) license.
The license will enable XFone to offer cellular services without building infrastructure of its own, and it will, in effect, allow the company to offer services over the existing infrastructure of one of the cellular companies.
XFone said the procedure was simple. “Customers interested in using the service should purchase a local SIM card and connect it to their handset, regardless of which, cellular provider, if any, they use.”
XFone president Rafi Dick said, “MVNO services are in use worldwide and their introduction in Israel will bring call rates down and increase competition. I am convinced that this move will revolutionize cellular call tariffs, as it has done in other progressive countries.
The Ministries of Communications and Finance are considering the opening up of the cellular market to further competition through MVNO services. The move has met with strong opposition from cellular operators who claim that this will ultimately harm the market. MIRS and joint cable operator HOT have also expressed interest.
Published by Globes [online], Israel business news - www.globes.co.il - on December 19, 2006
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