Israel’s Cellcom has reportedly begun offering services over the fibre-optic network belonging to Israel Broadband Company (IBC), even though it has not yet completed a deal to acquire a majority stake in the wholesale broadband provider. According to Globes Online, in areas where IBC has deployed its infrastructure, Cellcom is understood to be proposing that existing broadband customers (it currently has a wholesale access deal with Israeli incumbent Bezeq), now switch to receiving connectivity via IBC instead.
As previously reported by CommsUpdate, in March 2019 Cellcom confirmed it had entered into a series of definitive agreements related to a co-investment in IBC. At that date it said it had inked partnership agreements for the purchase of 70% of IBC’s share capital through an equal joint investment with the Israel Infrastructure Fund (IIF). Alongside this, through the joint venture (JV) that Cellcom will form with the IIF, two other agreements were said to have reached, specifically: a share purchase agreement with IBC and the Israel Electric Company (IEC) for the 70% stake in IBC; and a shareholder agreement with IEC, under which the latter will hold 30% in IBC, with the remaining 70% to be held by the Cellcom/IIF JV.