Consortium raises necessary financial guarantees for Israeli fibre-optic venture

10 Jul 2013

A consortium led by Sweden’s ViaEuropa that won the right to build the superfast broadband network operating over infrastructure owned by the Israel Electric Corporation (IEC) has moved a step closer to making the project a reality. Haaretz reports that consortium has now raised the required capital, having obtained ILS100 million (USD27.3 million) in equity as well as an ILS200 million bank guarantee, with this being the amount required by the government from the consortium before the joint venture can get underway.

As noted in TeleGeography’s GlobalComms Database, in December 2012 the ViaEuropa-led consortium – which also includes Zisapel Assets, Rapac Communications and Infrastructure, Tamares Knafayim Holdings and BATM Advanced Communications – won the right to build the superfast broadband network; the group will holds 60% of the JV, with IEC holding the remainder. Approval for the fibre-optic venture from the Ministry of Finance was granted 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.

Israel, Israel Electric Corporation (IEC)