Mobile operators unwelcoming of new player

The carriers argue that cooperation based on mutual consent by the parties currently exists between the companies.

Israel's 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. - oppose allowing a new mobile carrier to use their equipment and antennas for a new network, according to their objections in the Ministry of Communications hearing on the issue, published a few weeks ago. The mobile carriers told the ministry not to intervene in the matter and not to grant benefits to the new carrier.

To put it simply, the carriers are seeking to block the new carrier and frustrate as much as possible the deployment of its network.

The objections indicate that Cellcom, Partner, and Pelephone believe that they own the cellular sites they built, and that if the Ministry of Communications wants to allow a new carrier to use these infrastructures through compulsion, this harms the carriers' property rights. The carriers argue that cooperation based on mutual consent by the parties currently exists between the companies, and that this works to the satisfaction of everyone. They argue that compelling a new carrier will not work and will affect the motivation to reach understandings without intervention.

Published by Globes [online], Israel business news - www.globes-online.com - on July 4, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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