Sources inform ''Globes'' that top executives of 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC) and MIRS Communications Ltd. are negotiating to set up a joint mobile WiMAX network. The two companies are waiting for the Ministry of Communications' final WiMAX policy. Collaboration will be worthwhile for both companies.
MIRS, owned by Motorola Inc. (NYSE: MOT), has said several times that it is seeking a partner for a mobile WiMAX service. Smile, controlled by Shaul Alovitz's Eurocom Group through Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD), considers mobile WiMAX a strategic necessity to counter cellular operators' entry into the Internet service provider (ISP) market.
Since Smile cannot collaborate with Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) at this time, Smile's only alternative is MIRS, which plan a nationwide WiMAX network and already has infrastructures.
Smile, however, has said that it doubts the feasibility of a nationwide WiMAX deployment, and prefers a limited network combined with a mobile virtual network operator (MVNO).
Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2008
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