Sources inform ''Globes'' that mobile carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) have asked Minister of Communications Moshe Kahlon to reconsider allowing them to participate in the tender for setting up the Israel Electric Corporation (IEC) (TASE: ELEC.B22) fiber optic telecommunications network venture. Executives from the two companies told Kahlon earlier this that they consider the venture a rare opportunity to change the face of Israel's telecommunications market, and that, if permitted, they would be happy to bid in the tender.
Cellcom and Partner are urging Kahlon to bring IEC into the telecommunications infrastructures market as soon as possible. The government has banned telecommunications carriers from bidding in the tender, but Kahlon has the right to decide, in the event that no outside party participates in the tender, that Cellcom and Partner will be allowed to do so.
Cellcom and Partner are interested in the IEC venture because it will create a third telecommunications infrastructure, which will enable them to compete more effectively against Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and HOT Telecommunication Systems Ltd. (TASE: HOT).
Israeli and foreign companies have expressed interest in the tender in recent months. Executives have met IEC CEO Amos Lasker for details about the necessary investment and how to participate in it. They include Nader Ghermezian, and executives from MedNautilus undersea cable owner, Telecom Italia Sparkle SpA.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2010
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