Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) today signed a memorandum of understanding with Alon Cellular Ltd., a unit of Alon Holdings Blue Square Israel Ltd. owned by chairman David Wiessman, for Alon Cellular to operate as a mobile virtual network operator (MVNO) on Partner's network.
Alon Cellular plans to operate as a full MVNO. It will set up switches and billing and collection systems, and only rent Partner's radio network. This contrasts with the model of Rami Levi, who will hire all services from Pelephone Communications Ltd. for his MVNO venture.
Alon Cellular is collaborating with Virgin Mobile, which operates MVNOs in nine countries. Virgin Mobile is helping to set up the venture, but no decision has been reached about use of its brand, because it is not clear whether the Virgin brand has larger marketing value in Israel than Alon's range of brands.
Ellomay Capital Ltd. (Bulletin Board: EMYCF), headed by Shlomo Nechama and Eli Ozer, is a partner in the Alon Cellular venture. Alon Cellular plans to utilize the nationwide sales network through the Mega supermarket brand of its sister company Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI), and gas stations and convenience stores Alonit and AM:PM of another sister company, Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL).
Alon Cellular also plans to offer various unique benefits to YOU customer club, which currently has over 800,000 households.
Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2011
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