MVNOs will be allowed to purchase all their service from a host mobile carrier, and will have no investments other than marketing.
Sources inform ''Globes'' that the Ministry of Communications has cancelled mobile virtual network operators' (MVNO) requirement to set up independent telephony switches - switchboards that connect a mobile caller to the recipient, and which were a requirement of the MVNO license. The ministry cancelled this requirement for Dor Alon Cellular Ltd., which received an MVNO license, and which is due to operate on Partner Communications Ltd's (Nasdaq: PTNR; TASE: PTNR) network.
The decision means that Dor Alon Cellular and other MVNOs will be allowed to purchase all their service from a host mobile carrier, and will have no investments other than marketing.
The Ministry of Communications' requirement for MVNOs to have independent switches was intended as a kind of "seriousness fee" on the part of the operators, since they have, by definition, no independent network.
Published by Globes [online], Israel business news - www.globes-online.com - on April 4, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011