Mobile service provider YouPhone, an Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI) unit, has signed a partnership with Pelephone Communications Ltd. to use Pelephone’s cellular network. YouPhone currently uses the Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) network. The deal is believed to be worth NIS 30-40 million.
Under the terms of the agreement, a technological platform will be established within a few months, using Pelephone’s network infrastructure. The process will not affect YouPhone customers, who will not be required to take any action.
Only a few weeks ago, Partner signed a roaming and network sharing agreement with Hot Mobile Ltd., which had previously piggybacked on Pelephone’s network. Although there is no comparison between the two companies in terms of their activity, it seems that it was very important for Pelephone to take a big customer from Partner in return.
Pelephone CEO Gil Sharon said, “The deal with YouPhone is part of our strategy of hosting MVNO (mobile virtual network operators) on our network, as we defined already more than two years ago. We believe that there is mutual benefit to a situation in which we host and compete at once.”
YouPhone CEO Ariel Schreiber said, “The hosting agreement with Pelephone is yet another milestone as YouPhone continues to establish itself as a significant player, and leader in the mobile market. We chose Pelephone’s network in order to guarantee that we will have the best and most advanced network in the future as well.”
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2014
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