Pelephone, the mobile subsidiary of Israeli fixed line incumbent Bezeq, has reportedly signed a mobile virtual network operator (MVNO) deal with retailer Rami Levi.
The development comes after Pelephone became the first cell comapny to sign an agreement with a virtual operator in December 2010, when it agreed to allow a company called Free Telecom to use its network.
Under the terms of the latest deal, Rami Levi will sell mobile phones and cellular services at its supermarkets from the third quarter of 2011.
According to Pelephone Chief Executive Gil Sharon, his company views MVNO deals as the only way to grow. He noted that Pelephone’s business strategy in the context of MVNOs is ‘co-opetition’, which is a combination of competition with cooperation in infrastructure; with the understanding that’s where the world is going … The MVNO is another way for them to increase profits in a changing marketplace, while maximizing the capabilities of Pelephone’s advanced network.
