Telco Partner entering electricity supply

Partner

Partner has joined rival telecommunications companies Cellcom, Hot, and Bezeq in obtaining a power supply license.

Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) is joining the global trend of telecommunications companies going into power supply. The company has received a license from Minister of National Infrastructures, Energy and Water Resources Karine Elharrar, and will shortly start a pilot program among business customers. Partner has an advantage in the power supply industry thanks to its subscriber base of about three million, and its marketing, collection, and customer service capabilities.

In many ways, the move is similar to the establishment of the wholesale telecommunications market, which allows license-holders to take a ride on Bezeq Israeli Telecommunication Co. Ltd.'s (TASE: BEZQ) telecommunications network to provide telecommunications services directly to their customers. Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), HOT Telecommunication Systems Ltd. (TASE: HOT) and Bezeq have already received licenses to supply electricity.

In the coming years, power production by Israel Electric Corporation (IEC) will decline, as more and more private producers enter the market. While transmission will remain exclusively with IEC, the distribution segment has now been opened up to competition.

Some of the telecommunications companies intend to sell electricity as part of the telecommunications packages they already sell to subscribers, who will receive a single bill. The saving on electricity costs is estimated at about 8%.

Published by Globes, Israel business news - en.globes.co.il - on October 19, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.

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