I E-Mailed Igld investor relations and asked them of the Israel Supreme Court postponed their VoB rollout announced on May 27, 2007. The press release indicated that it was a premanent license to offer VoB/VoIP. If the Supreme Court put a hold on the roll out it was the direct result of a complaint by a competitor. Igld also obtained a right for portability of phone numbers just recently.
The spin off of Smile Media until the second quarter of 2008 is not a big problem - they are only 10 of revenues and profitability. The potential delay of VoB is a much serious problem. I will wait for IR response. They have responded to my E-Mails in the past.
Igld received the temporary marketing VoB license in March 2005 and at that time applied for a permanent license. Igld had 16,000 customers based on the temporary VoB license. So after two years of waiting the Israel Ministry of Communications granted them a permanent full license for VoB which was announced in the May 27, 2007 PR. Then two months later it was put on hold by the Israel Supreme Court? This is hard to believe. It was public knowledge that Igld applied for a VoB license back in 2005.
Keep in mind that Dutton's estimate of revenue/earnings does not include any revenue from VoB. They were holding off on any estimate to see how Igld would do on VoB in the second quarter.
Smile Communications nears number portability The small company obtained a permanent inland telephony license for its VOB technology in February. Guy Hadass 18 Jul 07 12:53 Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD) communications carrier subsidiary Smile Communications Ltd. is investing NIS 8 million in telephone number portability, and is in the final stages of the project. Hewlett Packard Co. (NYSE:HPQ) and Yael Systems are the project contractors. In February, Smile obtained a permanent inland telephony license for its voice-over-broadband (VOB) technology from the Ministry of Communications. The company is Israel�s smallest company in this sector, giving it a strong incentive to expedite number portability. The telephone number is the greatest barrier to switching communications providers, and when the barrier is lifted, Smile will have greater opportunities to recruit new subscribers, provided that the system works properly.
Smile said that the new number portability system enables a fully automated transfer of subscribers and their personal details.
Published by Globes [online], Israel business news -