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.

Israeli cellco Pelephone has agreed to allow an MVNO to operate over its network. The move follows efforts by the country’s Communications Ministry to boost competition and lower rates for consumers, including the issuing of licences for several MVNOs.

Pelephone has no pre-paid business and so was widely assumed to be the most likely candidate to host the country’s first MVNO, the identity of which has yet to be made public.

Pelephone is an Israeli-based telecommunications company, founded in 1986 as a joint venture between Motorola and Tadiran, today owned by Bezeq. It was the first company to offer mobile phone services in Israel. Due to this, the brand-name “Pelephone” became the genericized trademark for mobile phones in Israel, regardless of service provider.

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www.WirelessFederation.com/news: A payment deal has been unilaterally cancelled by Israeli telco NetVision which it had in place with fixed line incumbent Bezeq. The company expressed its unwillingness to  pay Bezeq under the terms of the arrangement, in which fees owed to the latter are based on the volume of traffic over the network.

Netvision’s move is attributed to a surge in such fees related to internet traffic, however, the company has not yet revealed whether it intends to cancel a similar deal with cableco HOT Telecommunication Systems, as the two companies have a similar agreement, although the price per GB it pays HOT is lower.

Bezeq’s prices are claimed to be too high by Netvision, especially when considering the rising level of internet traffic, but has noted that it has no alternative other than to work with the incumbent.

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Israel’s fixed line incumbent Bezeq has posted a 138% leap in its third quarter income, thanks to strong growth outside of its traditional fixed line business. Improved profitability at mobile business Pelephone and international telephony and internet access provider Bezeq International, as well as steady growth from satellite broadcaster YES, helped offset a slowdown in the domestic fixed line telephony market. Group net profit rose to ILS245 million (USD57.3 million) in the three months ended 30 September 2006, up from ILS103 million a year earlier. Revenues in the quarter rose to ILS2.88 billion, up from ILS2.84 billion, and EBITDA reached ILS1.05 billion, up from ILS962.6 million a year earlier. Pelephone posted a net profit of ILS97 million. Pelephone added 43,000 net active mobile subscribers in the period, taking its total customer base to 2.36 million, of which 180,000 took 3G services, up from 115,000 at the end of June. Bezeq International ended September with 867,000 ADSL broadband customers, up from 850,000 three months earlier.

Source- telegeography   

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