Motorola has sold its Israeli-based mobile network  – Mirs Communications – to local cable TV operator HOT for US$170 million in cash. The transaction has been made by Cool Holding, an investment vehicle for French businessman Patrick Drahi, which holds a 44 percent stake in HOT. According to a Reuters report, Drahi is interested in combining Mirs and HOT to create a serious rival to the Israeli fixed-line incumbent, Bezeq. Under the terms of the agreement, Cool Holding can transfer the rights and obligations of Mirs to HOT within 60 days of the signing of the deal if HOT agrees. “The company is studying… the repercussions of the acquisition and the alternatives it faces regarding the deal,” HOT said in a statement to the Tel Aviv Stock Exchange.

Mirs – Israel’s fourth-largest (and smallest) mobile network – was put up for sale by Motorola earlier this year. It had originally targeted a buyout by one of its larger mobile rivals, but such a deal was opposed by both Israel’s Ministry of Communications and the country’s Antitrust Authority, according to earlier reports. The network uses the proprietary iDEN mobile technology developed and supported by its US parent. However, Mirs has reportedly been looking to switch to a 3G technology after it was recently barred from bidding for a WiMAX license. According to Wireless Intelligence data, Mirs had 582,000 connections by the end of 3Q09, giving it a 6 percent market share.