Communications Ministry may cut cellular rates

The rate cuts will come into effect in parallel with the entry of new operators.

Sources inform ''Globes'' that the Ministry of Communications may cut cellular connectivity charges as mobile virtual network operators (MVNO) enter the market. The ministry wants to prevent cellular operators from raising their rates in the wake of cuts in connectivity charges that the ministry is contemplating. Consultancy firm Nera is advising the ministry on the matter.

The Ministry of Communications wants to force cellular operators to think twice before raising rates following the proposed cut in connectivity charges when MVNOs enter the market. The ministry is deeply worried that the rate hikes instituted by the cellular operators in the aftermath of the previous mandated connectivity charges will be repeated. The ministry believes that the entry of MVNOs will prevent this.

Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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