Partner offers its network to host new carriers
Partner believes that its previous management made a serious mistake by rejecting Hot Mobile and Golan Telecom’s request to host them.
Sources inform ”Globes” that Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) has offered to host the networks of Hot Mobile Ltd. and Golan Telecom Ltd.. Partner believes that its previous management made a serious mistake by rejecting the new carriers’ request to host them. As a result, rival Pelephone Communications Ltd. is seeing substantial hosting revenue from the new carriers. Partner added that it would not repeat the mistake with MVNO Rami Levy Cellular Ltd., which used Partner to lower the fees it paid to Pelephone.
The veteran carriers have been in talks with the new carriers after Minister of Communications Gilad Erdan said that he believed that there was no room for five nationwide carriers in Israel, and that he favored consolidation and a reduction in the number of antennas. He also favors an inter-ministerial committee policy initiative on antennas. Industry sources confirmed the talks to “Globes”.
The sources said that Hot Mobile is unhappy about its roaming costs, which are estimated at NIS 300 million a year, and that it is seeking to slash this figure through collaborations. Building new antennas is another big problem faced by all the carriers, but especially by the new ones which must meet Ministry of Communications requirements for nationwide deployment. The antenna problem is exacerbated by 4G networks, which require more antennas, especially small ones.
Partner has asked the Antitrust Authority to approve its antenna sharing with Golan Telecom. Mobile carriers, especially the veteran carriers, share antennas.
Partner, Pelephone, Hot Mobile, and Golan Telecom declined to comment on the report.
Published by Globes [online], Israel business news – www.globes-online.com – on July 11, 2013