Posts filed under ‘Israel’
Israeli WiMAX vendor, Alvarion, which recently had to break up its mobile WiMAX deal with Nortel has swung into a fourth-quarter loss due a restructuring charge and the Nortel problem. The firm reported a quarterly loss of US$4.8 million, compared to a profit of US$12.4 million a year ago. Revenues rose 6 percent to $70.1 million, a decrease of 6% from $74.3 million in the third quarter of 2008, and increase of 6% from $66.3 million in the fourth quarter of 2007.Excluding a restructuring charge of US$3.4 million and other one-off items, the company reported a net income of $119,000, down from $3.1 million a year ago.
The sequential decline in revenues was primarily a result of Alvarion’s inability to recognize $2.4 million of revenues from the sale of products to Nortel Networks during the fourth quarter of 2008 after Nortel filed for bankruptcy protection in January and subsequently repudiated the joint WiMAX agreement between the two companies. The decline in Q4 gross margin was due to the write-off of the cost of the equipment related to the Nortel sales in the period.
Israeli cellco Pelephone has announced the launch of its HSPA network, using equipment supplied by Ericsson. According to Pelephone CEO Gil Sharon the 3.5G infrastructure has required an investment of ILS1 billion (USD278 million) and represents the first in a series of strategies to improve capacity and services.
Israel’s Ministry of Communications (MoC) has announced that it will allow the entrance of mobile virtual network operators (MVNOs) to the country’s wireless sector. The MoC said that after considerations of reports it had requested from international analysts it believes that the introduction of MVNOs will increase competition in the market. It has revealed that several operators have already expressed an interest in the service model; earlier this month Integrated Digital Enhanced Network (iDEN) wireless trunking operator MIRS Communications announced it would consider MVNO options rather than a full network launch. The MoC has reportedly prepared a draft of the new regulations, including the main conditions and requirements for MVNO applicants. It has invited comments from industry players and other relevant parties; no date has been announced for the framework’s implementation. Commenting on the proposals Ariel Attias, the minister of communications, said, ‘The entry of additional operators to the mobile sector will change the game and will alter the balance that has prevailed among the companies in the recent years; any step taken to increase the competition in this sector, ultimately assists in reducing prices for the consumer, mainly in the private sector.’
The Israeli government has announced that it will permit the launch of MVNOs on the local market. The ministry of communications said that several companies have already expressed their interest for various new business models, including full MVNO. The government expects that the entry of more mobile operators to the market, along with the already existing number postability, will boost competition and encourage operators to come up with more attractive offers for customers. The ministry has prepared a draft ‘Licence for the provision of mobile telephony services involving the use of a mobile telephony network of another company’, and has laid down the main conditions and requirements of applying for an MVNO licence. There are currently three main mobile network operators in Israel: Orange, Pelephone and Cellcom.
Globes Online is reporting that Israel’s Ministry of Communications (MoC) has completed its hearing on WiMAX policy, and the final regulations are expected to be published by the end of the month. It is also expected that the regulator will announce a tender committee when it publishes the policy. No significant changes in the policy are expected from previous drafts, but the formulation of tenders for the licences is still understood to be unclear. Minister of Communications Ariel Atias has reportedly urged that the tender be based on the lowest price per minute, although the MoC is understood to be unsure how to implement this for the IP-based WiMAX technology.