Cellcom Israel Says One Agreement With Pelephone, Golan Likely To Get MoC Nod

(RTTNews) - Israeli cellular provider Cellcom Israel Ltd. (CEL) said that, subsequent to the entry into network sharing agreements by Israeli cellular operators for network sharing, the Minister of Communications, or MoC, has published a policy for cellular network sharing.

The company is studying the implications of the policy on its network sharing agreements.

But at this stage it concludes that both its agreement with Pelephone communications Ltd., or Pelephone, for the sharing of passive elements of cell sites for existing networks and its agreement to provide Golan Telecom Ltd., or Golan, an Indefeasible Right of Use to its 2G and 3G radio networks, generally meet the policy's principles. It may be approved by the MoC, subject to certain further adjustments

Further, its agreement with Pelephone and Golan for the construction and operation of a shared 4G radio network does not meet the policy principles and therefore will not be approved by the MoC.

The Company intends to continue its efforts to achieve network sharing and the goals it set out to achieve under the original network sharing agreements, including material savings in operating expenses and capital expenditures, which it expects to be mostly generated from the sharing of passive element.