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Print this ArticleIsrael MVNO Summary – MeiData
30 Jun 2011 by admin in Analyst, Feed, Israel, MVNO / No Comments
Source MeiDataIn the past year, Israel has seen major changes in the mobile market arena, with unprecedented regulatory interventions. The reformation of the market, led by the MoC, is aimed at creating 4 strong multi-play network operators with independent IP infrastructure (Bezeq-Pelephone, Partner Communications, Cellcom and HOT-Mirs), while introducing new smaller service providers who resell capacity on those networks, either in an MVNO model, or as sub-brands of those large players.
The major actions by the MoC included:
- Slashing the interconnection fees by over 70%, with further reductions in 2012.
- Allocating frequencies for 2 new mobile operators.
- Creating a regulatory environment enabling a fierce competition (intra-country roaming, net neutrality ordinances etc.).
- Introducing MVNOs.
Focusing on the MVNO arena, it seems reality isn’t going as smoothly as MoC and the consumers had expected, as license holders are failing to introduce a viable business model.
- 9 licenses have been given out by the MoC in the past year. Currently, none have yet launched services.
- 4 companies (365 Celluler by Hamashbir Lazarhan, Home Cellular by Home Center retail chain, Binet and T2T) abandoned their MVNO plans,
- 4 haven’t yet introduced a plan for a creation of profitable business model (Rami Levi discount retail chain, Free Telecom, Ituran and Alon Cellular),
- 1 company, Gali-fone (SIPMe), has just received its license this month. The company finalized its VoC (Voice-over-Cellular) network demonstration phase lately.
OECD data shows that in 2010, Israeli mobile subscribers were the fourth most expensive in the world. The 3 major network operators – Cellcom, Partner and Pelephone are not enthused to let new players enter the profitable market, and the MNO approach is currently the main barrier for MVNO profitability. further interconnection fee reductions in 2012 and the introduction of new network operators in 2012 is likely to boost MVNO activity in the still-frozen mobile market arena.
Israeli mobile subscribers are early technology adopters, and they love talking on the phone. The current Triopol works hard to keep its high profits to itself, and currently, succeeds in preventing new players from joining the market. Until 2012, the long-awaited change for these high-paying customers is not expected to arrive.
365 Cellular – abandoned its MVNO plans, signed a wholesale deal with Pelephone.
Home Cellular – abandoned MVNO license.
Binet- abandoned MVNO license saying it could not find a viable business model.
T2T – aimed at the high-end market, couldn’t get good tariffs on data from MNOs. abandoned MVNO license.
Rami Levi – Discount retailer, aims at no-frills service. Signed MNO deal with Pelephone in February.
Free Telecom – SIP provider, couldn’t receive VoC license from the MoC and suffers regulatory difficulties which prevent it from offering full services.
Ituran – Tracking service provider for vehicles. hasn’t announced its business plans.
Alon Cellular – Large Retail chain, signed MNO deal with Partner but still hasn’t announced business plans. In contact with Virgin Mobile.
Gali-Fone (SIPMe) – latest entrant to MVNO arena, SIP model seems promising price-wise.–
Meidata is an Israel-based research firm, providing competitive intelligence services for companies in the various fields, specializing on the telecom, security, energy and clean-tech industries. Standing on the shoulders of highly qualified multilingual analysts, the company offers in-depth market research, periodical market trackers and other information services for local and global clients.
For further information about Meidata, please refer to the company website at www.meidata.com, or e-mail info@meidata.com
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