Bezeq signs first wholesale deal with Xphone

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) has signed Israel’s first wholesale agreement with 018 Xphone Ltd., which will purchase engineering services from Bezeq to operate on its network, enabling Xphone to offer telephony services at low prices to customers.

The wholesale agreement covers all Bezeq services, enabling Xphone to sell these services directly to its customers with them having any connection with Bezeq or having to contact it to purchase parallel telephony or Internet services. When the agreement comes into effect, as far as the customer is concerned, Xphone has the responsibility for the line and the customer does not know the infrastructure company.

Bezeq VP Dudu Mizrahi, who handled the negotiations, told “Globes” that the agreement was unequivocal proof that Bezeq was serious about reaching understandings with the entire market on the wholesale model as the Ministry of Communications wants. “I hope that we can sign a similar wholesale agreement with Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL). Xphone has special needs because it’s a small carrier, but there are no major differences from the agreements that we hope will be signed with Cellcom and Partner.” He added that the agreement with Xphone would allow the company to provide all the services it wants, including television.

Published by Globes [online], Israel business news – www.globes-online.com – on February 27, 2013