Israeli cable operator HOT has initiated merger talks with number four mobile operator MIRS, it informed the Tel Aviv Stock Exchange.
Both companies are controlled by French businessman Patrick Drahi.
Local paper Haaretz reports that the tie-up has…
Israeli cable operator HOT has initiated merger talks with number four mobile operator MIRS, it informed the Tel Aviv Stock Exchange.
Both companies are controlled by French businessman Patrick Drahi.
Local paper Haaretz reports that the tie-up has already been approved by HOT’s board.
Cool Holdings, the holding company controlled by Drahi that owns cable leader Hot Cable Systems, last year made a US$180m offer to buy a controlling stake in MIRS, which was owned by Motorola. Drahi is therefore set to go head to head on quadruple play with the incumbent, Bezeq.
Drahi acquired a 6% stake in HOT from Fishman Holdings in March, raising his stake to 51.7%, reports Telegeography.
The proposed tie-up comes in the wake of mobile operator Partner agreeing to absorb ILD and ISP 012 Smile, and rival cellco Cellcom looking to buy 100% of ILD and ISP Netvision from the holding company that owns them both, IDB.
All stem from the Ministry of Communication (MoC)’s recent approval of changes enabling mobile operators to hold an ILD (international landline operator) licence if they agree to a structural separation between their long distance and cellular operations – meaning separate managements and separate IT systems. Previously, these kinds of companies have been owned as separate entities, but often under the umbrella of a single holding group.
The MoC has said it will end the need for structural separation until the close of 2012, or until a sufficient number of MVNOs are in place, whichever happens sooner.
What this will mean for consumers, who until now have had to pay separately for different telecoms services offered by the same telecoms provider, is the opportunity to buy triple or quadruple play products.
“The regulator now feels that it is better to have five big groups providing all services than many companies competing to offer many services”, Hapoalim analyst David Levinson told TelecomFinance last month.
MIRS and HOT were not available by press time.
