012 Smile.Communications Announces Implementation of the Gronau Committee Recommendations
PETACH TIKVA, Israel, August 20 2008 – 012 Smile.Communications (NASDAQ Global market and TASE: SMLC), a growth-oriented provider of communication services in Israel, today announced that Israel’s Minister of Communications declared his decision to implement the recommendations of the Gronau Committee for the increased competition in the communication market . The declaration constitutes (among others) the following decisions:
- Increase the competition within the Israel cellular communication market, by granting MVNO licenses.
- Cellular operators will not be allowed to enter the international long distance market unless an international communication services provider will be granted an MVNO license, and subject to changes in the tariffs of the international calls made by cellular phone users.
- Increase the competition within the landline communication services, by enforcing Local Loop Unbundling (LLU) of the infrastructure of Bezeq, The Israel Telecommunication Corp. Ltd., the incumbent local telephony provider in Israel. Following such LLU, Bezeq's subsidiaries will be allowed to offer bundled services, subject to several additional terms and conditions.
If fully implemented, these changes will allow the Company to compete in the mobile market and in the IPTV sector and improve its competitive position in the domestic land lines market.