Bezeq Purchased Mango Cellular Phones from Pelephone Without a Tender

Bezeq purchased a few thousand Mango cellular phones from Pelephone, devices which can receive incoming calls but place outgoing calls to only one specified telephone number. Bezeq General Manager Yitzhak Kaul stated that the company made the purchase decision after financial and quality investigations revealed that Mango provided the best solution. Bezeq did not specify in its announcement that Pelephone is its own subsidiary or that Kaul also serves as Pelephone's CEO. Bezeq Deputy Spokesperson Ronny Mandelbaum responded to questions, stating that quality investigations indicated that sound quality on Mango devices does not fall below the standard of any other device on the Pelephone network. Bezeq did not publish a public tender for the purchase of the cellular phone devices, as required by the Obligatory Tender Law which covers the company's activities. Mandelbaum confirmed that no tender was held, however, he claimed that Mango has no competitors in the market and that the Obligatory tender Law allows Bezeq to act in order not to damage the business or reputation of its own subsidiaries

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