Sources inform ''Globes'' that Rami Levy today approached the new mobile carriers HOT Mobile Ltd. and a target=new href=http://www.golantelecom.co.il/gt-site/>Golan Telecom Ltd. with an offer to cooperate in various ways.
HOT Mobile and Golan Telecom are both offering low-cost less than NIS 100 per month all-inclusive plans, which pose a real threat to the mobile virtual network operators (MVNO), such as Rami Levy Communications Ltd., rendering their own plans almost irrelevant. Rami Levy has been quick to face up to the new reality and respond to the changes in the sector.
The MVNOs are offering fixed fees plus payment per minute for calls, while the new carriers are offering fixed rates for unlimited calls, SMS, and internet access. These plans make the MVNOs even more dependent of the price of network services they buy from the veteran mobile carriers.
The MVNOs today reportedly asked the carriers to sharply cut the use prices for their networks. The prices set in these agreements almost a year ago are no longer relevant, prompting the MVNOs' demands.
There have always been questions about the MVNOs' viability under their current models, and they could not have anticipated the new carriers' aggressive pricing. The MVNOs have no ready response to the new carriers, which also offer international calls as part of their plans. Furthermore, the MVNOs must closely collaborate with their host networks. Rami Levy Communications, one of the first MVNOs to reach market, currently has 55,000 subscribers, mostly light mobile users who are sensitive to costs.
Rami Levy was not available for comment by we-posting.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2012
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