France-based Orange Group and Israeli communications provider Partner Communications, which currently offers services under the Orange brand, have announced the signing of an agreement which creates ‘a new framework for their relationship’. In a press release announcing the development, Orange Group confirmed that the two companies will use a detailed market study to assess Partner’s position within the dynamics of the Israeli telecommunications services marketplace. Meanwhile, under the terms of the agreement both Partner and Orange Group are understood to have the right to terminate the existing Orange brand license agreement (BLA). Should Partner opt not to exercise its right to terminate within a year of this new deal between the two companies, then either side would be able to terminate the BLA during the following twelve-month period.
In addition, the framework agreement will reportedly provide for total payments of EUR40 million (USD44.4 million) to Partner from signing the agreement until completion of the market study, with a further EUR50 million to be payable should the BLA be ended within the next two years.
Commenting on the development, Orange Group deputy CEO Pierre Louette was cited as saying: ‘Orange is pleased to enter into this new framework for our relationship. This resulted from our productive discussions over the past weeks. The Israeli telecommunications market study should provide a clear view to determine the best option for Partner, and we are committed to support this objective. For Orange, Israel is a strategically important country and we have a long term commitment to it, including our innovation activities through the Orange affiliates in Israel.’ Adam Chesnoff, chairman of the board of directors at Partner, meanwhile noted: ‘We are pleased to have reached a new agreement with Orange further to our 17-year relationship with the brand and to have established a new framework for our future relationship with Orange.’