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Cellular operator MIRS, the Israeli subsidiary of US-based mobile-phone giant Motorola, has won the tender to supply wireless telephony services to the Ministry of Defense.
â€œWe are not surprised by the decision. This is the second time we have won a tender for supplying the Ministry of Defense. We have on many occasions, and most recently during disengagement, proven that we are the best provider for Israelâ€™s defense industryâ€, Abrasha Burstyn, MIRSâ€™ chief executive officer told The Jerusalem Post.
The tender, which MIRS won with the lowest bid against Pelephone, Cellcom and Partner Communications, is for the supply of wireless telephony services to 39,000 subscribers, taking the contract from current provider Pelephone, which will lose its existing subscribers. MIRS already supplies 17,000 subscribers at the Ministry of Defense. The tender is for three years, with the option of extending for another three years.
While it didnâ€™t disclose how much the deal is worth, MIRS offered NIS 0.10 per minute for airtime to all networks, with no inter-connect charges, plus a NIS 5 fixed usage charge.
â€œWe matched the price. This is not a project where we will lose money. This is a strategic move for us,â€ said Burstyn. â€œIn the long-term, we see potential for additional contracts from other defense bodies, the military and the police.â€
MIRS develops and manufactures radio communications systems and wireless solutions based on its iDEN technology and markets integrated mobile phones with two-way radios and paging devices.
MIRS was founded in 1998 and had 350,000 subscribers as of August 2005 with revenue of $182.6 million in 2004. Some 75 percent of its customers are business subscribers, the largest being the Israeli Defense Forces, the Police, and Israel Electric Company. Of the remaining private users, 10% are prepaid subscribers.
Operating in competition to Pelephone, Cellcom and Partner Communications, MIRS is the smallest cellular operator with 4% of the market.
TCM advised the ministry in the tender.
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