Cellcom Israel Ltd. (the ‘Company’), has announced that it is holding negotiations with Partner Communications Company Ltd. or Partner, another Israeli telecommunications operator, regarding a potential long-term cooperation agreement for the deployment of fibre 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, fibre optic infrastructure services (including Indefeasible Right of Use – IRU) in the other party’s present and/or future fibre optics infrastructure in order to connect residential buildings throughout Israel.
The agreement, if concluded and executed, will allow the companies to avoid duplicated future deployment, as well as allow the Company to reduce costs while improving its ability to provide quality services. The effect of the agreement on the Company’s results of operations, if concluded and executed, is subject to the actual cooperation executed.
The finalisation 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. There is no assurance that the negotiations will be concluded nor that regulatory approvals will be received or that the agreement will be executed.
At the same time, the Company is exploring other ways to accelerate the deployment of an independent fibre infrastructure.