Department store New Hamashbir Lazarchan Ltd. (TASE:MSZB) will return its mobile virtual network operator (MVNO) license for Telecom 365 Ltd. to the Ministry of Communications, after reviewing its feasibility. The company received the license in June 2010.
Instead, Hamashbir's customer club, Club 365 Ltd., has signed a cooperation agreement with A target=new href=http://www.bezeq.co.il/>Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) mobile subsidiary Pelephone Communications Ltd. to jointly market mobile services, beginning in mid-2011. The services will be provided using an mobile virtual network retail (MVNR) model.
The telecommunications services will be marketed under an independent brand through Hamashbir's expanded retail platform. Services will include the sale of devices, air time, SMS, and content services. Hamashbir has one million Club 365 cardholders with more than 140 credit points which can be used at Hamashbir, New Pharm Drugstores Ltd., and Office Depot Israel Ltd.
Pelephone CEO Gil Sharon said that the collaboration with Hamashbir would boost Pelephone's sales power in various market segments, especially in the segments where Club 365 is strong. "Collaborations of this kind are common around the world, and are usually quite successful," he said.
Last week, Pelephone and MVNO Free Telecom Ltd. announced a deal for the sale of airtime and SMS to Free Telecom over Pelephone's network.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2010
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