Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) notified the Tel Aviv Stock Exchange today that it plans to construct an independent fiber-optic network. Partner plans to place telecommunications cabinets next to those of Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), and to reach them independently on the basis of optic fiber cables via Bezeq infrastructure. The company is considering bidding in the tender for introducing an investor into Israel Electric Corporation's fiber-optic venture, and the move that it announced today is consonant with that.
Partner plans to use Bezeq's existing infrastructure under the second stage of the reform in the wholesale market which is supposed to open up Bezeq's physical infrastructure for the use of competitors. The only problem is that the second stage of the reform is stuck because Bezeq will not allow the use of its infrastructure and is setting conditions for this to happen, but Partner believes that the Ministry of Communications will not be able to prevent it from investing in the reform that the ministry itself is promoting, and it therefore thinks that Bezeq's infrastructure will in fact be opened up to competitors.
Partner's idea is one that Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) considered years ago. The idea is that if access is allowed to central telecommunications hubs in cities, and cabinets can be placed next to those of Bezeq, it will be possible to cover the last mile to customers on the basis of existing infrastructure of Bezeq or HOT Telecommunication Systems Ltd. (TASE: HOT).
This is a very heavy investment that Partner is prepared to make in order not to remain dependent on Bezeq's good graces, and it therefore issued a notification to the stock exchange in order to demonstrate the seriousness of its intentions. This is an ambitious project that is highly complex and will take a long time, one that represents good news for the market after the complaints by the Ministry of Communications about the lack of investment by Bezeq's competitors.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2016
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