Sources inform ''Globes'' that Telecom 365, the new mobile virtual network operator (MVNO) owned by New Hamashbir Lazarchan Ltd. (TASE:MSZB), has approached Israel's three mobile carriers - Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), and Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) subsidiary Pelephone Communications Ltd. - to open negotiations to use their networks and buy airtime.
The Ministry of Communications gives newly authorized MVNOs six months to strike deals with the mobile carriers, otherwise the ministry has the right to intervene and set the use prices. The mobile operators have refused to open negotiations with MVNO applicants on the grounds that they have no licenses. This argument fails with Telecom 365, which was the first applicant granted an MVNO earlier this week, and the mobile carries have no choice but to respond to the request to open negotiations.
Telecom 365 is encouraged by the Ministry of Communications' caps on payments to the mobile carriers, including a recommended inter-network connectivity tariff of NIS 0.0414.
Telecom 365 will reportedly begin operations in the second half of 2011. The company is currently deciding on the solution it will use to connect to the mobile networks via its own switch. It also needs customer billing and collection systems, and because it wants to buy and sell data communications services, it will need a customer call center.
Hamashbir chairman Rami Shavit said yesterday that the discount he planned to offer private subscribers would be cross subsidized by other the department store and its subsidiaries, including tourist agency Aviation Links Ltd. (TASE: AVIA) and New Pharm Drugstores Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2010
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