Sources inform ''Globes'' that Ituran Location and Control Ltd. (Nasdaq:ITRN); TASE:ITRN) has applied for an mobile virtual network operator (MVNO) license. The vehicle location and services company's application follows the application to provide mobile telecommunications services of Israel Postal Company Ltd. and Bynet Communications Ltd.
For Ituran, becoming an MVNO is a strategic opportunity to boost revenue by providing cellular services. The company's plan got a boost from reports that the Ministry of Communications' has decided to reduce inter-network connectivity fees to a minimum, suggesting for the company and its competitors that it is worthwhile entering the field.
Ituran, like other companies applying for an MVNO license, have filed the applications in order to move forward on the licensing process, but a final decision will only be made when the final price of the connectivity fees for current mobile operators are published. For this reason, the applicants have not yet provided the guarantees required by the applications.
Ituran's share price fell 2.8% on Nasdaq yesterday to $15.26. The share was unchanged in morning trading on the TASE today at NIS 57.78.
Published by Globes [online], Israel business news - www.globes-online.com - on April 28, 2010
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