Israel Electric Corporation (IEC) (TASE: ELEC.B22) and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) are in talks to collaborate on a trial to test the transmission of Internet services over IEC's fiber optic network. Sources inform ''Globes'' that Cellcom president of business customers Refael Poran spoke with IEC executives about a possible joint test.
IEC recently called off talks with Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), when Partner said that it would not finance a trial by itself.
Minister of Communications Moshe Kahlon supports using IEC's fiber optic network to expand competition in the telecommunications market. Currently, fiber-to-the-home (FTTH) technology can provide 100 megabit or 1 gigabit symmetric bandwidth. The platform could suit services that require large bandwidth, such as Internet Protocol television (IPTV) programming.
Hot Cable Systems Media Ltd. (TASE: HOT) opposes Kahlon's initiative, and is seeking to stop it, fearing that it could affect the company's investment in boosting transmission speeds to customers.
IEC has to conduct a trial with a telecommunications provider in order to connect the switch to the network. Furthermore, only some of IEC's fiber optic cables can transmit broadband communications, and a trial is essential to test the feasibility and reliability of the technology.
Cellcom declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2009
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