MVNOs on the way

The Communications Ministry has published its policy on expanding competition in the wireless market.

The opening of Israel’s wireless telephony market to further competition is underway at last. Today, the Ministry of Communications has published its policy on expanding competition. The ministry has decided to forbid the existing wireless carriers from becoming MVNOs (mobile virtual network operators), either directly or via associated companies. (An MVNO does not have its own network, but buys a pool of call minutes from another carrier’s network which it then sells to its subscribers.) The ministry will allow companies connected to the wireless carriers, such as 013 Netvision, which is a sister company of Cellcom, to become MVNOs on condition that they can demonstrate that their business has declined substantially and only entering the MVNO business can save them. The ministry estimates that it will be possible to obtain an MVNO license early in 2010.

Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2009

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

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