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Gov't prepares for MVNO despite its consultants' report
[September 23, 2007]

Gov't prepares for MVNO despite its consultants' report

(Israel Business Arena Via Thomson Dialog NewsEdge) The Ministry of Communications intends to begin issuing mobile virtual network operator (MVNO) licenses in the next six months. The ministry is pushing ahead with its policy of encouraging competition in the cellular market, despite the findings of a report it commissioned from global consulting firm NERA Economic Consulting, which concluded that MVNO's effect on the market will be marginal.

NERA believes that main change in cellular service pricing will take place in the prepaid segment, meaning those customers who pay for their call time upfront through prepaid phone cards. Although this is a significant market segment, (2 million customers), it is not considered attractive for cellular companies, and it does not affect most of the population. In addition, NERA's report did not uncover any failing in the Israeli cellular market, and concluded therefore, that the competition in it was satisfactory.

Sources at cellular companies expressed their satisfaction today at the NERA report's conclusion that the cellular market did not need any more players.

Published by Globes [online], Israel business news - - on September 23, 2007

Copyright of Globes Publisher Itonut (1983) Ltd. 2007

Copyright 2007 Globes, Source: The Financial Times Limited

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