Rami Levy in talks to sell MVNO to Pelephone
Rami Levy Communications has been unable to match the latest discounts offered by new carriers Golan Telecom and Hot Mobile.
Rami Levy has reduced Rami Levy Communications’ activity at his supermarkets, and it is no longer possible to join the MVNO at every supermarket. He also reduced the MVNO’s workforce, and in general its business is waning.
Rami Levy Chain Store’s financial report for the third quarter of 2012 stated that Rami Levy Communications had 68,000 subscribers, after a net recruitment of 1,000 subscribers. The number of subscribers has since dwindled, but until the financial report for the fourth quarter is published, the exact figure is unknown. Under the circumstances, it cannot be ruled out that Levy will sell the MVNO for the right price.
Rami Levy Communications buys end-to-end services from Pelephone, including SIM cards. In effect, the MVNO is a branch of Pelephone under Levy’s brand, and the sale of the MVNO to any carrier other than Pelephone would require the replacement of all the SIM cards, which is unrealistic.
Ramy Levy declined to respond to calls, and Pelephone declined to comment.
Published by Globes [online], Israel business news – www.globes-online.com – on January 16, 2013