Cellcom Israel Announces 4G Network Sharing Agreement With Golan Telecom

(RTTNews) - Cellcom Israel Ltd. (CEL) announced that it entered a network sharing agreement with Golan Telecom Ltd., under which Golan will be provided an Indefeasible Right of Use, or IRU, to the company's future 4G radio network, generally for at least 5 years and 9 months and for as long as it is used by the company.

Each of the company and Golan will provide the required frequencies for the operation of the 4G radio network and purchase and operate their own core network. The Agreement is subject to the Antitrust Commissioner and the Ministry of Communications' approvals to both this Agreement and to the parties' previous agreement under which Golan is provided an IRU to the company's 2G and 3G radio networks, or 2G 3G IRU Agreement.

The company said its annual revenues from both IRU agreements, if approved, are expected to be at a similar level to those generated from the parties' existing national roaming agreement in 2013. As previously reported, the 2G 3G IRU agreement, if approved, will replace the national roaming agreement.

The company continues its efforts at further network sharing, including the sharing of passive elements of cell sites for existing networks, which the company expects to generate future savings in both operating expenses and capital expenditures.