Threat to Golan’s network rollout, as MIRS blocks deal with NSN

1 Dec 2011

Israeli mobile operator MIRS Communications has reportedly blocked Finnish vendor Nokia Siemens Networks (NSN) from rolling out network infrastructure for Golan Telecom, which emerged as one of two winners of an Israeli 3G licence in August 2011. As previously reported by CommsUpdate earlier this month, Golan had selected NSN to construct its mobile network, in part, due to links already held between NSN and Golan’s partner, French mobile carrier Free Telecom. However, local press reports at the time noted that, as NSN is also the exclusive vendor for MIRS Communications, the latter had to give its consent for the contract between NSN and Golan.

With MIRS having previously expressed concern as to whether the vendor would be able to construct the two sets of infrastructure simultaneously, according to Globes Online, in the latest development it has emerged that, while the vendor will sell equipment to Golan, it will not roll out the new player’s network. It is understood that NSN has promised MIRS priority in the delivery of equipment and infrastructure construction work, but it remains unclear whether such measures will allow the Golan deal to continue as originally intended.

Globes meanwhile also notes that Golan Telecom has already filed a complaint with the Israel Antitrust Authority (IAA) over MIRS’ pressure on vendors not to work with the would-be market entrant.