XFONE

XFONE, also written Xfone and known in Hebrew as אקספון, is an Israeli telecommunications company whose activities have included international calling, internet access, fixed-line voice trials, and mobile communications. The company’s history spans several distinct phases: it began in 2000 as a United Kingdom-based communications venture, expanded into the United States, established an Israeli international-telephony operation, and later became a broader Israeli communications provider. The business was founded by Guy Nissensohn, who had previously worked as marketing director at RADA Electronic Industries. In its early years, the company developed communications activities in the United Kingdom and the United States. Its corporate structure included Swiftnet Limited in Britain and Xfone USA in the United States. Xfone International was listed on the American Stock Exchange in 2002 without raising capital and subsequently completed additional fundraising. In 2004, the company entered the United States communications market with domestic and international services. Its American expansion accelerated in 2007 through the acquisition of NTS Communications, a Dallas-based provider of integrated voice, video, and data solutions. The acquired operation continued to use the NTS name rather than the Xfone USA brand. XFONE entered the Israeli international-calling market after receiving a Ministry of Communications license in July 2004. It operated under the 018 prefix, competing with established and newer providers such as NetVision and Internet Gold. This liberalized segment became one of the company’s enduring Israeli activities. XFONE later broadened its local offer. It began supplying internet services in 2009 and was positioned as a low-price provider. In 2013, it became the first Israeli internet service provider identified in the reference material as offering IPv6 to customers. It also used the wholesale-access model to provide a combined internet connection and fixed-line telephone service over Bezeq infrastructure. The company explored domestic voice services through a Voice over Broadband marketing trial. The trial began in the late 2000s, but XFONE discontinued the service and cancelled the associated lines in November 2009, citing economic considerations in the company’s account of the decision. Mobile communications became the company’s most visible later expansion. XFONE won a 2011 Ministry of Communications tender to establish a cellular network, but the concession was cancelled after the company did not raise the required bank guarantee. A later effort, conducted through the 018 Marathon subsidiary, focused on fourth-generation spectrum. XFONE entered a network-sharing arrangement with Cellcom and Golan Telecom through CMG JV. Cellcom operated the relevant antenna network, while XFONE and Golan Telecom used the infrastructure under the agreement. In April 2018, XFONE began operating as Israel’s sixth cellular operator under the We4G brand. The mobile business was subsequently associated with the WeCom name. Ownership changed significantly during the company’s development. Hezi Bezalel acquired the Israeli XFONE company in 2010, while the earlier international structure was reorganized. The United States activity was sold to a private investment fund at a reported company valuation of US$83 million in 2013. In June 2021, XFONE announced an agreement to sell the business to the Reichman family for ILS 330 million and to operate as a fully virtual mobile network operator. The announcement followed a legal dispute with Cellcom, according to the cited reference material. XFONE’s present identity is therefore primarily that of an Israeli communications and mobile-service brand, with mobile services marketed under WeCom rather than the former We4G designation.

XFONE was established in 2000 in the United Kingdom by Guy Nissensohn. The early company developed a cross-border telecommunications structure, with Swiftnet Limited associated with British local and international services and Xfone USA associated with American communications operations. The company was listed on the American Stock Exchange in 2002 without raising capital and later undertook additional fundraising. In 2004, it expanded its United States activity into domestic and international communications. The company’s Israeli presence began with a Ministry of Communications license for international telephony in July 2004. XFONE became one of the competitors admitted to the Israeli international-calling market after the regulator opened the segment to additional providers. It used the 018 prefix, alongside other competing prefixes. In July 2006, Xfone International shares were listed on the Tel Aviv Stock Exchange. At that point, the business comprised several international and Israeli entities rather than a single narrowly focused local operator. In August 2007, XFONE acquired NTS Communications in Dallas. NTS supplied integrated voice, video, and data solutions, and the transaction substantially expanded the company’s United States activities. The American business continued to operate under the NTS name. XFONE also tested domestic fixed-line communications in Israel. It received authorization in 2007 for a marketing trial using Voice over Broadband technology and began marketing internet-based telephone services in 2008. The trial was ended in 2009, when the company notified customers that the lines would be cancelled. XFONE began supplying internet services in Israel at the start of 2009 and competed as a low-price ISP. It later participated in the development of wholesale broadband services over Bezeq infrastructure. In 2013, the company was identified as the first Israeli ISP to provide IPv6 to customers and as an early provider of a combined internet and fixed-line service under the wholesale-access model. Ownership and geographic focus shifted in the following years. Hezi Bezalel purchased XFONE Israel in 2010. The broader Xfone International structure was subsequently dismantled, while the United States operation was sold to a private investment fund in 2013. The Israeli business then pursued mobile telecommunications. XFONE won a cellular-network tender in 2011, but its concession was cancelled when it failed to provide the required bank guarantee. A later subsidiary, 018 Marathon, obtained fourth-generation spectrum and entered an infrastructure-sharing arrangement with Cellcom and Golan Telecom through CMG JV. In April 2018, XFONE became Israel’s sixth cellular operator under the We4G brand. Its mobile activity was later presented under the WeCom name. In June 2021, the company announced an agreement to sell the Israeli business to the Reichman family for ILS 330 million and to shift toward a fully virtual mobile-network model. The announcement was made in the context of a legal conflict with Cellcom. XFONE’s evolution consequently moved from international calling and multinational communications operations toward an Israeli, value-oriented provider of internet, calling, and mobile services.

1. 2021Sale to the Reichman family announced

   XFONE announced a proposed sale to the Reichman family and a transition toward a fully virtual mobile-network model.

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2. 2018We4G mobile launch

   XFONE began operating as an Israeli cellular operator under the We4G brand.

   Source
3. 2013IPv6 and wholesale broadband development

   XFONE became an early Israeli provider of IPv6 and combined internet and fixed-line services over Bezeq infrastructure.

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4. 2011First cellular-network tender attempt

   XFONE won a cellular tender, but the concession was cancelled after the required bank guarantee was not raised.

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5. 2010Israeli business acquired by Hezi Bezalel

   Hezi Bezalel purchased the Israeli XFONE company as the international corporate structure was reorganized.

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6. 2009Israeli internet launch and fixed-line trial closure

   XFONE entered Israeli internet services and ended its domestic VoIP marketing trial later that year.

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7. 2007NTS Communications acquisition

   XFONE acquired NTS Communications in Dallas and expanded its American integrated communications business.

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8. 2006Tel Aviv Stock Exchange listing

   Xfone International shares were listed on the Tel Aviv Stock Exchange.

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9. 2004Israeli international-calling license

   XFONE received a Ministry of Communications license for international telephone services and began United States communications activity.

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10. 2002Xfone International lists on the American Stock Exchange

    The company listed on the American Stock Exchange without raising capital in the listing transaction.

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11. 2000XFONE is founded in the United Kingdom

    Guy Nissensohn founded the company as a communications venture in the United Kingdom.

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A value-oriented Israeli telecommunications provider combining low-cost internet and international calling with mobile communications delivered through a virtual-network and network-sharing model.

• International callingInternational telecommunications2004

  XFONE’s Israeli business entered the liberalized international-calling market in 2004 and operated under the 018 access prefix. The service connected Israeli customers to international destinations and formed one of the company’s foundational local telecommunications activities.

• Internet accessInternet service provider2009

  XFONE began supplying internet services in Israel in 2009, competing partly through low pricing. Its later activities included IPv6 access and wholesale broadband arrangements using Bezeq infrastructure, allowing internet and related fixed-line services to be supplied without requiring a separate retail relationship for every component.

• We4GMobile communications2018

  We4G was the consumer-facing mobile brand under which XFONE entered the Israeli cellular market in April 2018. The service relied on network-sharing arrangements involving Cellcom and Golan Telecom and followed XFONE’s acquisition of fourth-generation spectrum through its 018 Marathon subsidiary.

• WeComMobile communications

  WeCom is the later brand used for XFONE’s mobile communications services after the We4G period. It represents the company’s move toward a virtual-network operating model in the Israeli mobile market.

• Domestic VoIP telephonyFixed-line telephony2008

  XFONE tested domestic telephone services using Voice over Broadband technology. The service was marketed under a regulatory trial license beginning in 2008, but the company terminated the trial and cancelled the lines in November 2009.

• 2021Proposed sale to the Reichman familyM&A

  XFONE announced the transaction after a legal dispute with competitor Cellcom and during a restructuring of its mobile operating model.

  What changed. The company announced a sale to the Reichman family and a plan to become a fully virtual mobile network operator.

  Aftermath. The announcement marked a shift in ownership and emphasis toward virtual mobile-network operations. Completion details are not established by the supplied reference.

  Announced transaction value. ILS 330 million (June 2021 announcement)

  • Cellcom — The reference identifies a legal dispute between XFONE and Cellcom in connection with the sale announcement but does not provide a detailed public reaction.
  Source
• 2018Entry into cellular services under We4GProduct launch

  XFONE obtained fourth-generation spectrum through its subsidiary and arranged shared cellular infrastructure with Cellcom and Golan Telecom.

  What changed. XFONE launched mobile communications as Israel’s sixth cellular operator under the We4G brand.

  Aftermath. The mobile business later operated under the WeCom name and moved toward a virtual-network model.

  Source
• 2011Attempt to establish a cellular networkStrategy

  XFONE sought to expand from international calling and internet services into mobile communications.

  What changed. The company won a Ministry of Communications tender, but the concession was cancelled after it did not raise the required bank guarantee.

  Aftermath. The company later pursued mobile entry through 018 Marathon, fourth-generation spectrum, and a shared-network structure.

  Source
• 2009Termination of domestic fixed-line trialOther

  XFONE had tested domestic telephony over Voice over Broadband technology under a Ministry of Communications marketing-trial license.

  What changed. The company ended the trial and notified customers that the associated lines would be cancelled.

  Aftermath. The fixed-line experiment was abandoned, while XFONE continued developing internet and other communications services.

  Source

• 2021XFONE announces sale to the Reichman family

  XFONE announced that it would be sold to the Reichman family for ILS 330 million and would become a fully virtual mobile network operator. The announcement followed a legal dispute with Cellcom.

  M&ALawsuit
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• 2018XFONE begins operating as We4G

  Following a fourth-generation spectrum process and network-sharing arrangements, XFONE entered the Israeli cellular market under the We4G brand.

  Product launchProduct generation
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• 2011XFONE receives and loses an initial cellular-network concession

  XFONE won a Ministry of Communications tender to establish a cellular network, but the concession was cancelled after the required bank guarantee was not raised.

  RegulationOther
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• 2010Hezi Bezalel acquires XFONE Israel

  Israeli businessman Hezi Bezalel purchased the Israeli XFONE company while the wider international structure was reorganized.

  M&A
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• 2009XFONE launches internet services in Israel

  XFONE began supplying internet access in Israel and competed on price in the local ISP market.

  Product launchPricing
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• 2009XFONE ends its domestic VoIP telephony trial

  The company announced the end of its marketing trial for internet-based domestic telephone lines and cancelled the associated service.

  Other
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• 2007XFONE acquires NTS Communications

  The company acquired Dallas-based NTS Communications, expanding its United States activities in integrated voice, video, and data services.

  M&A
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• 2006XFONE lists international shares on the Tel Aviv Stock Exchange

  Xfone International shares were admitted to trading on the Tel Aviv Stock Exchange as the company operated through British, American, and Israeli entities.

  Other
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• 2004XFONE receives Israeli international-telephony license

  The Israeli Ministry of Communications granted XFONE a license to provide international telephone services, allowing it to compete using the 018 access prefix.

  Regulation
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1. Xfone
2. XFONE official website