Xfone ends network sharing agreement with Cellcom

Xfone 018 has officially ended its cellular network sharing agreement with Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and is seeking an alternative arrangement. Xfone has been at loggerheads with Cellcom for some time over the amount it should be paying for the network sharing arrangement and consequently Xfone has only been paying part of the amount demanded by Cellcom in recent months.

Xfone, owned by Hezi Bezalel, had been sharing the network with Cellcom and Golan Telecom. But Xfone argues that the merger between Cellcom and Golan without consulting with Xfone was a violation of the network sharing agreement.

Ending the agreement will enable Xfone to find an alternative network to host it, or alternatively Xfone is considering returning its license as an operator and taking out a MVNO virtual license instead. Such a move would require the consent of the Ministry of Communications and would inevitably lead to legal suits and proceedings involving Cellcom.

Published by Globes, Israel business news - en.globes.co.il - on January 31, 2021