Sources inform ''Globes'' that Golan Telecom Ltd. is in talks to join the shared network of mobile carriers Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and HOT Mobile Ltd.. Following the announcement of the Partner-Hot deal, the mobile market is in a state of flux, with everyone in talks with everyone else to create 2-3 networks, as Minister of Communications Gilad Erdan wants.
The big story in the mobile market came two weeks ago when Orange franchisee Partner and Hot Mobile announced an agreement to establish a joint network. The deal ignited speculations, including that Golan Telecom might link up with either Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) or Pelephone Communications Ltd., or that Cellcom and Pelephone might team up. It turns out that there is only one option, which is Golan Telecom teaming up with the Partner-Hot Mobile network.
Executives involved in the deal confirmed to "Globes" that only preliminary talks are underway, and that everyone is waiting to see the positions of the Ministry of Communications and the Antitrust Authority to the Partner-Hot deal and to a possible Cellcom-Pelephone partnership.
The sources added that nothing in the Partner-Hot Mobile deal prevents adding a third partner to the venture, and that the partners definitely considered this option, in order to create a three-way division of costs, rather than just a two-way division.
Hot Mobile and Golan Telecom have been competing fiercely; a rivalry spiced up by a personal conflict between their owners: Patrick Drahi and Xavier Niel and Michael Golan, respectively. But business is business and money has no odor, and bringing Golan Telecom into the partnership has not been ruled out.
Golan Telecom said in response, "The company does not comment on rumors".
Partner declined to comment.
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013