Partner Communications and HOT Mobile strike network sharing deal

11 Nov 2013

Israeli cellco Partner Communications has entered into a network sharing arrangement today with HOT Mobile, the latter of which is a wholly owned subsidiary of cableco HOT Telecommunication Systems. Under the terms of the 15-year deal, Partner has said that it will create 50%-50% joint venture with HOT Mobile which will operate and develop a single radio access network (RAN) utilising the duo’s pooled spectrum resources, with the infrastructure itself to be shared by the two operators. The JV, meanwhile, will work to optimise the shared network by ‘reducing the number of network sites, while improving network coverage and capacity and introducing new technology, in order to improve network efficiency, optimise operating costs and reduce environmental impact’. As per the agreement, Partner and HOT Mobile will continue to compete, with each retaining and operating its own core network, while also maintaining responsibility for providing mobile voice services to its own customers, including the provision of customer service, value added services, marketing and sales. The scope and terms of the deal, however, remain subject to approval by the Israeli authorities, including the Antitrust Authority.