"UUNET and Canadian firm Teleglobe will enter the Israeli international calls market as soon as it opens for competition in the beginning of 2003," says a top market source. He estimates the companies will provide Internet services while seeking international operators licenses.

UUNET is a subsidiary of American giant Worldcom (Nasdaq:WCOM), the second largest long distance phone company in the world. 20 UUNET emoloyees have been in Israel for almost 18 months now. The Communication Ministry reports the company was granted a special ISP license seven months ago.

Teleglobe is a subsidiary of Bell Canada. Its customers, who include Internet content, ISP and ASP providers, are from 110 countries around the world. Last year Teleglobe expanded its network and invested billions of dollars in additional IP networks.

UUNET has already considered co-operation with Israeli companies, and has negotiated to buy into Internet providers NetVision and Internet Gold (Nasdaq:IGLD).

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The CEO of UUNET in Israel told TheMarker several months ago that he will soon "give an official announcement and hold a press conference on the company's preparations for the opening of the international market to competition."