Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) has begun selling Internet and television packages on the infrastructure of IBC (the fiber optic venture on Israel Electric Corporation infrastructure).
Although it has not yet completed the deal to buy the venture, and is waiting to receive the license from the Ministry of Communications, the company has started to sell the venture's services where it is deployed. Where there is an overlap among its customers, who receive services on Bezeq infrastructure, it is proposing that they should switch to receiving service from IBC.
In the past, Cellcom and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) were not prepared to work with the venture because of its previous marketing structure, which was one reason for its collapse. The venture made sales only through a dedicated Interest site, through which users chose an Internet provider from a list, which annoyed Cellcom and Partner, who saw it as a failing, since the customer would not be theirs.
Now, Cellcom is marketing the venture under a new agreement whereby it leases lines from it, in similar fashion to the usual model on Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) infrastructure. This is unconnected to the deal it has made to buy the venture together with the Israel Infrastructure Fund.
As mentioned, that deal awaits approval from the Ministry of Communications, which is due to grant a new license to the venture. Only then will the deal be finally closed, the shareholders will receive their money, and the venture will pass to its new owners: Cellcom, Israel Infrastructure Fund, and Israel Electric Corporation.
Published by Globes, Israel business news - en.globes.co.il - on June 13, 2019
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