Cellcom demands compensation over Golan-HOT deal

14 Jun 2016

Israeli mobile operator Cellcom is claiming that a network hosting deal between Golan Telecom and HOT Mobile, which was announced last week, breaches the Share Purchase Agreement (SPA) and National Roaming Agreement (NRA) it had previously reached with French-owned Golan. In November 2015 Cellcom entered into an agreement with Golan’s shareholders to acquire a 100% stake in the company for ILS1.17 billion (USD303 million), but in April this year the Israeli Antitrust Authority (IAA) and the Ministry of Communications (MoC) blocked the deal on competition grounds. Mobile market leader Cellcom then said it was working on an agreement that would allow Golan to continue to use its mobile networks, but last week HOT Mobile revealed it was negotiating its own ten-year roaming deal with Golan. Cellcom has said that if the deal with HOT proceeds, it would terminate the SPA and demand compensation of ILS600 million plus VAT as defined in that agreement, as well as the recovery of ILS300 million worth of discounts it provided Golan under the NRA.

Israel, Cellcom, Golan Telecom, HOT Mobile