If the Ministry of Communications adopts the Gronau recommendations to allow cellular operators to enter the international calls market, Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) will apply for a license, CEO Amos Shapira said yesterday.
"There is no reason why not," Shapira said. "If the service is viable and profitable, we won't hesitate to enter it." He stressed that if Cellcom could compete against its IDB Holding Corp. Ltd. (TASE:IDBH) sister company, NetVision Ltd. (TASE: NTSN) in communications in the business sector it could also compete in the international calls market.
The Gronau committee recommends allowing cellular provides to enter the market on the present basis in the wireline telephony international calls market. The idea is for customers to pay the full cost of the call to the international calls carrier, who will transfer the payment for the cost of the call to the inland telephony operator. Currently, when a cellular subscriber makes an international call, separate payments are made to the cellular company and the international calls carrier. The Gronau committee's proposal is problematic for the cellular companies and they may try to fight it.
Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) also plans to apply for an international calls license, and Pele-Phone Communications Ltd. will likely follow suit as soon as the policy is finalized.
Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2008
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