Cellcom's cellular modem has renewed focus on the issue.
The entry of IDB Holding Corp. Ltd. (TASE:IDBH) unit Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) into the household Internet market this week again raises the question of the structural separation between wireless telephony carriers and Internet service providers (ISPs). A senior Ministry of Communications official says that there is no doubt that the issue will be one of the most important topics that the ministry will deal with after the new minister takes up his post.
The issue of structural separation first came up when wireless carriers sought to become ISPs as well. Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) set up ISP activity, while Cellcom is now offering a cellular modem that serves as a home router that can link several computers to enable cellular-based surfing as part of a low-cost telephony package.
Operators have asked the Ministry of Communications to aggressively intervene to prevent wireless carriers from providing Internet services, which will affect ISPs. The ISPs have asked the ministry to allow subscribers to choose their service provider even when using a home cellular Internet service via a designated router such as Cellcom's, and even if the subscriber is using a cellular telephone for surfing.
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009