Goodbye, Hallo MVNO? Would-be virtual operator calls on MoC to enforce contract

29 Mar 2012

International calls carrier 015 Hallo has reportedly called on Israel’s Ministry of Communications (MoC) to order Pelephone to honour a mobile virtual network operator (MVNO) agreement that it claims has been cancelled by the cellco. According to Globes Online, Hallo acquired Cellran Cellular Communications, which it is understood had signed a virtual operator deal with Bezeq-subsidiary Pelephone prior to its purchase by Hallo. With the network operator claiming, however, that this contract was voided a week ago – Pelephone has contended the contract was terminated after Cellran failed to meet its commitments – Hallo has argued that unilateral cancellation should not be allowed. For its part Hallo claims that Pelephone had, in fact, tried to amend the contract, only to then cancel it when Cellran refused the revised terms.

The development comes just a day after Hallo, which is operated by The Israeli Communication Company (Hilat), unveiled the proposed pricing for its MVNO offering. As reported by Haaretz, the would-be virtual operator announced it would be offering unlimited talk time and text messages for ILS99 (USD27) a month, with the tariffs expected to go live by the end of April. On top of the unlimited talk and SMS package, should Hallo be able to move forward with its launch plans, customers will also be offered the option of unlimited internet access via mobile for an additional ILS19.90 per month.

As it stands, it will now be up to the MoC to decide whether or not it will compel Pelephone to honour the disputed contract. Should it choose not to do so, it has been suggested that Hallo could seek to initiate legal action regarding the matter.

Israel, 015 Hallo, Ministry of Communications, Pelephone