Award of IEC fibre venture tender delayed

14 Jun 2013

With the tenders committee still yet to complete its work, the award of the tender for the creation of the telecommunications company which will operate over infrastructure owned by the Israel Electric Corporation (IEC) has been delayed, Globes Online reports.

As noted in TeleGeography’s GlobalComms Database, in December 2012 a consortium led by Sweden’s ViaEuropa won the right to build the superfast broadband network. Approval for the IEC fibre-optic venture from the Ministry of Finance was forthcoming just a month later, following a presentation by the consortium to the tenders committee detailing plans for the network development, which included a promise to introduce 1Gbps access speeds.

It is understood that the Israeli government was hoping to formally award the tender to Cisco chairman John Chambers next week during the executive’s visit to the country; Cisco is the main financial backer and dominant partner in the fibre-optic venture with ViaEuropa. The report notes that IEC’s board of directors met this week to receive an update from the tenders committee, in which the latter said it expected to complete work on ViaEuropa’s proposal by next week. However, the committee also noted that there were still outstanding issues on how the venture’s partners would work with IEC. As a result, a new deadline for announcing the consortium as the tender winner has been pushed back to early July 2013.

Israel, Israel Electric Corporation (IEC)