Bezeq presses for compensation from Cellcom over contract termination

12 Mar 2009

Israeli telcos Bezeq and Cellcom have met to discuss whether the latter will face fines for the early termination of a contract which allows it to use Bezeq’s services to connect its cell sites, Globes Online reports. Cellcom presently connects approximately 400 of its cell sites using Bezeq’s fibre-optic infrastructure and the contract between the two operators is reportedly worth several million shekels. It is understood that Bezeq is planning to seek compensation of between ILS5 million (USD1.19 million) and ILS8 million. The discussions come after Cellcom, which has now connected the majority of its sites to its own fibre-optic network, announced it would stop utilising Bezeq’s network before the contract officially expires at the end of 2010. It is rumoured that the two companies may reach an agreement wherein Cellcom would be willing to continue utilising the services, albeit at a reduced price, but it is believed that Bezeq is unlikely to lower its access fees.