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network, with the intention to supply fiber optic links and high-speed internet. As per
recent news publications, IBC expressed an interest in the recruitment of a strategic
investor, which would contribute, naturally, to the emergence of a new competitor in
an arena currently dominated by Israeli telecommunication companies. By doing so,
it unveils an intriguing opportunity for newcomers in the developing Israeli optic fiber
field. Therefore, it is no surprise that such news regarding the IBC enterprise has already
caught the attention of major Israeli cellular companies.
In June 2016, Partner Communications Company Ltd. (“Partner”) announced that it is
exploring the possibility of deploying a nationwide independent fixed-line infrastructure
using fiber optics, which would allow it to offer faster internet services and advanced
high quality television services. As published, Partner is focusing on taking advantage
of the passive wholesale market that allows the installation of independent fixed-line
infrastructure,including using the cable ducts of "Bezeq" - The Israel Telecommunication
Corporation Ltd, the largest telecommunication player in Israel.
A Meaningful Transaction in the Israeli Cellular Market
One landmark event in the Israeli telecommunications market occurred in November
2015, when Golan Telecom Ltd. ("Golan"), which joined the Israeli cellular market in
2012, and its shareholders, entered into a share purchase agreement with Cellcom Israel
Ltd. (“Cellcom”), one of the major Israeli cellular companies, for the purchase of 100%of
Golan’s shares by the latter (the "Golan Transaction"). The Golan Transaction is one of
the most publicized transactions in the Israeli telecommunications field in recent years.
Such a deal has faced regulatory hurdles as theMoCand theAntitrust Authority rejected
the application to grant their approval for such a transaction. The regulatory authorities’
decisions are currently being questioned, after petitions were submitted by Golan and
its shareholders and by Cellcom to Israel’s High Court of Justice.
The Issuance of a New General Permit for Small Internet Services Providers
In June2016,theMoCannounced that,in accordancewith the tendency for bureaucracy
relief in the Israeli telecommunications sector, the Israeli Prime Minister and Minister of
Communications has signed a unique general permit for the provision of internet access
services. As published, the new permit, which shall apply to small internet providers
with less than 20,000 clients, includes limited provisions, and is expected to simplify
significantly the licensing process regarding the supply of such services. Hence, the
issuance of the permit beholds new opportunities for small internet services providers,
which are looking to become established in the Israeli market.
It seems as though, nowadays more than ever, the Israeli telecommunications market,
due to an evolving process of regeneration towards reduced regulation regime,
embodies exciting opportunities for newcomers, as well as for recurrent investors, to
initiate and to pave their way towards different enterprises and projects in the Israeli
telecommunications market, whether they are looking at internet services, television
broadcasting, cellular technology and much more.
As published, the new permit, which shall apply to small internet providers with
less than 20,000 clients, includes limited provisions, and is expected to simplify
significantly the licensing process regarding the supply of such services.