Wednesday, 29 April 2009

Israeli Ministry of Communications to set MVNO fees – Israel

Media reports have surfaced claiming that the Israeli Ministry of Communications (MoC) will be allowed to step in and take action when a potential MVNO cannot agree pricing terms with an MNO.

The MoC has released details regarding the criteria which must be met before the MoC can take action. The prospective MVNO will have up to six months to negotiate with a network operator, if no agreement can be made within this time frame then the MoC will be able to investigate and determine the reason for the failure. If the subsequent investigation discovers that the price negotiations fell through due to ‘anti-competitive conduct’ then the MoC can determine the fees which will be due.

The Moc and the Ministry of Finance have also agreed to jointly work towards developing this area by hiring a consultancy firm to handle connectivity issues. Previously, the Gronau committee had recommended a further reduction in cellular connectivity rates. However, former Minister of Communications, Ariel Atias, was unable to proceed as the Ministry of Finance rejected the budget allocation for the implementation of Gronau committee's recommendations.