IBC seeking USD300 million investment?

9 Jun 2016

Israel Broadband Company (IBC), which is rolling out fixed broadband services over the fibre-optic network belonging to Israel Electric Corporation (IEC), is reportedly seeking partners to invest around USD300 million in the project. According to Bloomberg, which cites three people with knowledge of the matter, Rothschild is currently helping IBC, a joint venture between IEC and a consortium led by Sweden’s ViaEuropa, to find investors, with an emphasis on local companies. One of the sources claimed that Israeli mobile network operator Partner Communications Company has conducted preliminary work into the feasibility of a potential partnership, though a spokesperson for the cello said that no decisions had been made. An IBC spokesperson was meanwhile quoted as saying that the internet infrastructure company will open a data room for the deal within a month.

Alongside requiring funds to expand its fibre-optic infrastructure, the report notes that IBC also requires assistance in attracting subscribers. With the company not permitted to offer services directly to customers – instead alternative ISPs can offer services over its network – take-up for its products is said to have been ‘negligible’ to date, according to an e-mail from Israel’s Ministry of Communications cited by the report.

Israel, Israel Broadband Company (IBC)