Sources inform ''Globes'' that mobile operator Mirs Communications Ltd. has blocked the deal in which Nokia Siemens Networks Israel Ltd. would set up the mobile network for Golan Telecom Ltd.
Under the agreement signed between the companies, Nokia Siemens will sell equipment to Golan Telecom, but not set up the network, forcing Golan Telecom to seek a different integrator. This is quite problematic, and raises concerns about competitiveness in the mobile market, because Golan Telecom will find it difficult to set up its network without Nokia Siemens.
"Globes" reported that Mirs, owned by Patrick Drahi, was trying to prevent Nokia Siemens from contracting with Golan Telecom, raising concerns that there might be no deal at all. Golan Telecom shareholder, French operator Free Telecom SAS, chose its own integrator, Nokia Siemens, for Golan Telecom, which facilitated a deal and the price.
Nokia Siemens reportedly promised Mirs preference in setting up its own network, which leads to different interpretations of how matters will play out. Either Nokia Siemens will first have to set up Mirs's network before setting up any other network, or merely give Mirs priority in delivery of equipment and set-up work. Either case raises questions about the terms Mirs demanded, and whether they raise anti-competition issues.
Golan Telecom has already filed a complaint with the Antitrust Authority against Mirs over the latter's pressure on vendors not to work with Golan Telecom. Golan Telecom contends that vendors' work with other operators was affected after the vendors' began working with it.
Mirs said in response, "We are waiting for a decision by the Antitrust Authority on the matter, which is under review. We will carry out any decision that the Antitrust Authority orders."
Golan Telecom has not responded to the report.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011