Rami Levy considering sale of MVNO unit to Pelephone?

17 Jan 2013

Israel’s Rami Levy Chain Stores Hashikma Marketing 2006 is reportedly considering selling its mobile virtual network operator (MVNO) unit, Rami Levy Communications. According to Globes Online, the retailer’s chairman Rami Levy recently met with representatives of local mobile network operator Pelephone discuss a possible sale. Such proposals, it is claimed, have been prompted by Rami Levi Communications’ failure to reverse subscriber declines in the face of heightened competition. Despite an ongoing price-war led by the likes of Golan Telecom and Hot Mobile in the wireless sector, Rami Levy Communications has not responded with price cuts of its own, with its tariff remaining at the ILS88 (USD23.58) per month price-point that it stood at several months ago.

Further, it is understood that Rami Levy has reduced the MVNO’s activity in the group’s supermarkets, with it no longer being possible to sign up for Rami Levy Communications’ services at every store; instead services are only on offer in selected locations. Amid reports that the virtual operator has also seen its staff numbers reduced, the latest official subscriber figures produced by the operator said it had 68,000 subscribers at the end of September 2012, having added just 1,000 net subscribers in the three-month period. While it has yet to release customer numbers for the end of December 2012, the report claims that the figure will have fallen against the end of the previous quarter.

Israel, Rami Levy Communications