Wireless carrier Partner Communications Co. Ltd. (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD) planned trial of fiber-optic cable use with Israel Electric Corporation (IEC) (TASE: ELEC.B22) has been delayed. The two companies have yet to submit a formal request for the trial.
The belief in the Ministry of Communications is that the delays are being caused by the IEC's workers committees as part of their struggle against proposed reforms of the company. IEC's spokesman said that the company is not delaying anything and that he knew nothing about delays to the project.
The planned Partner-IEC trial has been welcomed by the Antitrust Authority and other regulators that want to expand competition in the communications infrastructure sector.
Using IEC's fiber-optic network could provide access to every settlement and home in the country and they have major potential and can serve as a platform for encouraging new technological developments.
Partner is taking part in the trial against the background of the slow deployment of the advanced communications networks of Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ) and Hot Cable Systems Media Ltd. (TASE: HOT) and Partner's desire to broaden its service offerings in landline communications.
IEC has for years been trying to promote its fiber-optic network but the idea has at various times been opposed by government ministries and the Ministry of Finance, which fears giving the IEC a competitive option before it implements work force structured reforms and streamlining.
IEC CEO Amos Lasker, who previously worked in the communications sector, decided when he assumed his position, to promote the subject, and prepared a plan for using IEC's fiber optic cables.
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2009
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