A major change in Israel's telecommunications infrastructure could be in the works. Sources inform "Globes" that Israel Electric Corporation (IEC)and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR; LSE:PCCD) are in talks to set up a venture which will use the IEC's fiber optic cable network as a telecommunications network.
Partner CEO David Avner and IEC CEO Amos Lasker recently met with Minister of Communications Moshe Kahlon, and asked him to approve a preliminary trial in order to study the economic and technological feasibility of the move. Kahlon said yes, and promised to approve the trial and to examine the matter closely, along with other ministers that would be involved.
The two companies want to conduct a trial in an Israeli city, though it has not yet been decided whether the trial will be in an entire small city or just in a specific neighborhood. In the course of the trial, customers will receive telecommunications services through Partner. The services are only those covered by Partner's license, such as Internet and mobile telecommunications, and do not include services such as television.
The trial will also study the use of the fiber optic cables to connect cellular sites, most of which are today linked by Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) infrastructure, and through the networks of the mobile companies themselves.
The trial will also focus on transferring especially heavy files to the customer's home.
Published by Globes [online], Israel business news - www.globes-online.com - on July 1, 2009
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