Communications Minister Benny Gantz has approved an investment by Hot Telecommunication Systems Ltd. in the IBC fiber optic project, which is trading under the name Unlimited. From a regulatory point of view, the path to the deal is now open, and it will be supplemented by a payment of 170 million shekels by Hot in exchange for 23% of the shares of IBC. The ownership of the project will then be split between Cellcom Israel Ltd. (NYSE: CEL; TASE: CEL), Hot, and the Israel Infrastructure Fund at 23% each, and the Israel Electric Corporation, which will continue to hold the remaining shares. Related articles Nokia supplies Bezeq’s optical fiber project Bezeq wins a tender to connect Europe and Asia cable to Israel near the bottom of the Fiber Optic League The deal creates a new force in optical fibers in Israel that will rival Bezeq Israel Communications Ltd. (Tice: Bezeq). Two of the largest telecom service providers in Israel, Cellcom and Hot, are now partners in the project whose sole goal is to deploy a fiber-optic cable network that will be open to all telecom companies on an equal footing. This means that the fact that Cellcom and Hot are among the network’s owners will not allow them to purchase services from it at a price different from the market price. From this point of view, the project has become an attractive dimmer in the wholesale market, and it will compete with Bezeq in both the wholesale and retail markets through telecom companies. The Ministry of Communications permit is subject to the following conditions: 1. IBC will reduce barriers to network entry and use. It would maintain its personality as a wholesale company and would be obligated to grant discounts to enable younger players to use its network. 2. The company is required to spread a high-speed Internet to 1.7 million families in Israel for a period of five years from the date of approval of the deal / transfer of control. The network will be deployed in a 1: 1 ratio among the number of households in the center of the country and in the periphery. 3. Hot will undertake to provide all Internet service providers with an opportunity for any common basket of services approved in the past, provided that they are provided on the basis of IBC’s access infrastructure on an equal basis and without discrimination in favor of the Hot (Hot-Net) service provider ). “We believe that the approval of the deal will lead to a significant acceleration of the deployment of optical fiber cables throughout the country, especially in the peripheries,” said Director General of the Ministry of Communications Leran Avissar bin Hourin. Posted by Globes, Israel business news – en.globes.co.il – February 8, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021
The Ministry approves Hot’s stake in the IBC fiber optic project
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