Cellular companies Cellcom and Partner Communications (Nasdaq: PTNR) have signed an agreement to link their cellular networks directly, without using Bezeq as an intermediary. Cellcom's fiber-optic network will be used to connect the two networks. The agreement marks the first time a company has rented fiber-optic services from a party other than Bezeq.
Sources inform “Globes" that the deal will save Cellcom and Partner NIS 7 million each per year, which they have paid Bezeq until now, at the rate of NIS 0.012 per call minute.
Cellcom's fiber-optic network, which operates on SDH technology, is deployed on over 700 km and is expected to reach a deployment of 1,000 km shortly.
The network Cellcom set up over the past two years enables it to independently link all its switches and base stations, allowing it to provide very accessible network services. A year ago, Cellcom received a Ministry of Communications license to lease transmission services utilizing its network. Med-1 also offers fiber-optic communications services in Israel.
Partner VP for carrier, investor, and international relations Dan Eldar told “Globes” that Partner had chosen to rent fiber-optic services from Cellcom because some of the calls end on Cellcom’s network, so it was logical to use its infrastructure.
When asked how the agreement would affect Partner’s rates, Eldar answered that Partner did not charge its subscribers a fee for the link to Bezeq, so its fees would not change. A Cellcom spokesperson declined to respond to a similar question.
Bezeq declined to comment on the report. Sources inform “Globes” that during the negotiations, Bezeq tried to persuade the two companies not to go through with the agreement. Later, when it was clear that Cellcom and Partner planned to bypass Bezeq and set up a direct link between them, Bezeq tried to persuade them to use its fiber-optic network for the purpose.
Published by Israel's Business Arena on October 24, 2001