Fiber-optic venture targets Beersheva, Cellcom, Partner
Efforts are being made to begin deployment in November.
Sources inform ”Globes” that the investors in the fiber optic venture are seriously considering beginning deployment of fiber-to-the-home in Beersheva. The venture is also planning to propose to mobile carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) that they should transfer their mobile transmission to it and hook up thousands of their antennas to fiber optics. The goal is to target large business customers as quickly as possible, and lay fiber optic cable to them, because they have the potential to provide the high revenue required for financing the project.
The sources added that there is a strong desire to begin work in November 2013, which means that it is very possible that businesses and homes will be able to be connected shortly after that.
As “Globes” reported, the fiber optic venture’s board of directors has already met several times and begun preparations for getting the venture underway. On Sunday, it applied to the Ministry of Communications for a license, and the investors have already begun looking for premises and a CEO.
The idea that the venture will try to offer to sell transmission to Cellcom and Partner is very logical, especially for Partner, for which Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) handles most of its transmission to antennas. Since the venture is based on Israel Electric Corporation’s (IEC) (TASE: ELEC.B22) infrastructures, and every antenna is hooked up to the grid, it is very logical for the venture to consider Partner as a preferred customer.
In contrast to Partner, Cellcom mainly uses its own infrastructures, but the venture is important to it too, because it can help Cellcom in areas where it lacks independent transmission. The venture can also help Cellcom expand its activity in the enterprise market, because in many places the carrier still needs Bezeq’s network for transmission.
The investors are trying to organize the event to launch the venture in August with the participation of Prime Minister Benjamin Netanyahu.
Published by Globes [online], Israel business news – www.globes-online.com – on July 31, 2013