If agreement is reached, it will allow the two mobile companies to avoid duplicated future deployment.
Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) has announced that it is in negotiations with Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) on potential long term cooperation agreement for the deployment of fiber optic infrastructure by both companies, whereby each party will be entitled to purchase from time to time, as per its needs and at its sole discretion, fiber optic infrastructure services (including Indefeasible Right of Use - IRU) in the other party's present and/or future fiber optics infrastructure in order to connect residential buildings throughout Israel.
Cellcom said that the agreement, if concluded and executed, will allow the companies to avoid duplicated future deployment, as well as allowing Cellcom to reduce costs while improving its ability to provide quality services. It said that the effect of the agreement on its results of operations would be subject to the actual cooperation executed.
The finalization of the agreement is subject to further negotiations between the parties and if concluded, the execution of the agreement will be subject to the required regulatory approvals. Cellcom warns that there is no assurance that the negotiations will be concluded nor that regulatory approvals will be received or that the agreement will be executed, and adds that it is exploring other ways to accelerate the deployment of an independent fiber infrastructure.
Published by Globes [online], Israel business news - www.globes-online.com - on November 20, 2017
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