Ituran will sell low-cost air time minutes to its customers as part of the MVNO venture.
Ituran Location and Control Ltd. (Nasdaq:ITRN); TASE:ITRN) and Pelephone Communications Ltd. have signed an agreement which will allow Ituran to use Pelephone's network to set up an MVNO (mobile virtual network operator) venture. The agreement allows Ituran to purchase services from Pelephone, and sell low-cost air time minutes. Yechiel Ben Shushan, Ituran's partner in the venture, will manage the project. Shushan has extensive experience and knowledge in establishing similar ventures.
Ituran has been a main distributor for Partner Communications Ltd.'s (Nasdaq: PTNR; TASE: PTNR) Orange brand in the past, and is also active in the mobile industry in everything related to sales and installations of telephones and value added services. Ituran will now be able to offer low-cost air time and has a wide customer base and good nationwide coverage, which is a good starting point.
Pelephone is adding another customer to its MVNO customer list, even though it is uncertain whether its existing partnership with Free Telecom will be successful.
Pelephone also signed an agreement with Rami Levi Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI), which according to rumors is supposed to begin operating in September marketing rather than competing with Pelephone.
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011
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