Israeli mobile operators Cellcom (TASE:CEL) and Bezeq (TASE:BEZQ) can go ahead with their passive infrastructure sharing agreement, competition authorities have ruled.
Under the 10-year pact, signed in September 2014, the rivals may share maintenance…
Israeli mobile operators Cellcom (TASE:CEL) and Bezeq (TASE:BEZQ) can go ahead with their passive infrastructure sharing agreement, competition authorities have ruled.
Under the 10-year pact, signed in September 2014, the rivals may share maintenance services for passive elements of cell sites, which includes unifying passive elements and streamlining costs through a common contractor.
In March, incumbent Cellcom noted in an SEC filing that the sharing would take place via a common contractor, selected in an RFP process. It said the contractor would enter into separate agreements with Cellcom and Pelephone, Bezeq’s mobile brand, for at least five years.
Last May, American Tower (NYSE:AMT) was reported to be in talks with both mobile operators with regard to a sale and leaseback of their towers.
The Israeli companies were not available for comment, while a spokesperson for American Tower was not immediately available.
Cellcom has some 2.89 million subscribers, while Pelephone has 2.4 million, according to their own figures. The country’s other three players are Partner Communications (which trades as Orange), Hot Mobile and Golan Telecom.
Antitrust officials in April approved a network sharing agreement between Hot Mobile and Partner, driving hopes that a similar agreement between Cellcom and Golan would also be approved. Network sharing is seen as a prelude to in-country M&A, which until now has not been allowed.
