Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) has won a Ministry of Defense tender to provide some landline telephony services for the IDF. This is the first time that a tender has been published for these services. Cellcom will provide 50-100 hookups to switchboards at IDF bases. The company did not disclose the financial value of the deal.
Three years ago, Cellcom obtained an inland telephony service license, and has been providing landline services to business customers.
The tender process took almost a year, during which time IDF professional staff examined Cellcom's technology and services capabilities.
Cellcom CEO Amos Shapira said, "We consider winning this tender a vote of confidence by the IDF in the capability and reliability of the company's technology and services in general, and of its telephony services in particular. We see landline telephony in the business market as an important growth engine for the company's business."
Cellcom is a unit of Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH), held through Discount Investment Corporation (TASE: DISI). Cellcom's share closed at $29.70 on the NYSE yesterday, giving a market cap of $2.92 billion. The share fell 0.8% in morning trading on the TASE today to NIS 112.10.
Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2009
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