Xfone seeking injunction against Cellcom’s network sharing agreement with Electra

1 Feb 2017

Israeli mobile network operator (MNO) Cellcom has announced that 018 Xfone has filed a request in court for an interim injunction against it. It is understood that Xfone is seeking to prevent the completion and execution of the January 2017 network sharing and hosting agreement struck between Cellcom and Electra Consumer Products, the last named of which agreed to acquire another local cellco, Golan Telecom in January.

In a press release confirming this latest development, Cellcom says that Xfone has claimed the agreement with Electra contradicts a network sharing and hosting agreement between it and Cellcom which was signed in July 2016. While Xfone argues the January 2017 agreement violates its rights, Cellcom has rejected such a suggestion, saying it intends to execute the network sharing agreements with both Electra and Xfone, while it will ‘vigorously oppose’ the injunction request.

As previously reported by CommsUpdate, alongside announcing its ILS350 million (USD91 million) acquisition of Golan, Electra inked a network sharing deal with Cellcom, which it was suggested would generate around ILS210 million a year before taxes for the latter, with the final sum said to be dependent on the number of subscribers signed up to Golan Telecom and their usage levels. As part of this agreement the two cellcos are expected to cooperate in the development of a shared 3G and 4G network and ‘future technologies’ using both parties’ frequencies. This infrastructure is to be operated by a separate, newly created, 50/50-owned entity. In addition, Cellcom will allow Golan to access its 2G network as part of the deal between the two companies.

Israel, 018 Xfone (We4G), Cellcom, Golan Telecom