Niel eyes for Israel cell phone licence

JERUSALEM: A group that includes the founder of French telecom group Iliad, Xavier Niel, will likely compete in a tender to set up a new mobile phone operator in Israel, sources said on Tuesday.

One Israeli government source told Reuters that Niel, who founded Iliad, the French telecom group that markets its triple-play packages under the brand name Free, and former Free chief executive Michael Boukozba, paid 25,000 shekels ($7,000) to participate in the tender slated for February.

Israel has four mobile phone operators, the largest being Cellcom, followed by Partner Communications, Bezeq unit Pelephone and Mirs. The mobile phone penetration rate in Israel is estimated at about 125 per cent, one of the highest in the world.

The government is seeking to stir up competition through more companies as well as through mobile virtual network operators (MVNOs).

Another source familiar with the matter said Niel, Boukobza and other investors "had bought the right to participate in the auction of the mobile phone licence in Israel."

Israel's Communications Ministry, Niel and Boukobza declined to comment.