Partner Communications Company Ltd. ("Partner" or the "Company") (NASDAQ:PTNR) (TASE:PTNR), a leading Israeli communications operator, announces that the Ministry of Communications (the "MOC") approved the network sharing agreement, that the Company has entered into with HOT Mobile Ltd. ("Hot Mobile"), a wholly owned subsidiary of Hot Telecommunication Systems Ltd., an Israeli cellular telecommunications operator (the "NSA"), following the Antitrust Commissioner (the "Commissioner") approval which was received in May 2014.
As of this date, the NSA is the first and only network sharing agreement in Israel to receive the approval of the Commissioner and the MOC.
The shared cellular network of Partner and Hot Mobile will be operated through a joint venture of both companies (the "Shared Network"; the "JV"). The JV will operate to optimize the Shared Network by reducing the number of network sites, while improving network coverage and capacity and introducing new technologies, in order to improve network efficiency, optimize operating costs and environmental impact. The JV fully operation is subject to the grant of telecommunication license to the JV and the allocation of the frequencies bandwidths (each of 5MHz) in the 1800MHz spectrum that Partner and Hot mobile were awarded in the 4G frequencies tender. Partner will continue to differentiate its high standard services from its competitors, and to retain and operate its own core network, and will be responsible for providing advanced cellular telecommunication services to its own customers, including the provision of customer service, value-added services, marketing and sales.
Prior to the receipt of approval of the MOC to the NSA, Partner's
management has entered into an agreement with the representative labor
union of the Company employees - the Histadrut new general labor
organization and the employees' representative committee, which
regulates the transfer of employees from Partner to the JV.
For
further information, please see the Company's Annual Report on Form 20-F
for the year ended December 31, 2014 "Item 3. Key Information - 3D.2
RISKS RELATING TO OUR BUSINESS OPERATIONS - 3D.2c - The network sharing
agreement entered into by Partner may not provide the anticipated
benefits and may lead to unexpected costs" and "3D.2e - The recent
unionization of our employees might prevent us from executing necessary
organizational and personnel changes, result in increased costs or
disruption to our operations, and reduce management’s flexibility to
adapt operations to market conditions, and our operating expenses may be
increased, all of which could adversely impact our results". See also
"Item 4. Information on the Company - 4B. Business Overview - 4B.9 OUR
NETWORK - 4B.9a Overview" and the Company's press releases and
immediate reports (on Form 6-K) dated November 8, 2013 at: http://maya.tase.co.il/bursa/report.asp?report_cd=854655
or http://www.sec.gov/Archives/edgar/data/1096691/000117891313003091/zk1313845.htm
and May 22, 2014 at: http://maya.tase.co.il/bursa/report.asp?report_cd=898380
or http://www.sec.gov/Archives/edgar/data/1096691/000117891314001802/zk1414995.htm.
Forward-looking statements
This
press release contains forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933, as amended, Section 21E of
the US Securities Exchange Act of 1934, as amended, and the safe harbor
provisions of the US Private Securities Litigation Reform Act of 1995.
Words such as "estimates", "believe", "anticipate", "expect", "intend",
"seek", "will", "plan", "could", "may", "project", "goal", "target" and
similar expressions often identify forward-looking statements but are
not the only way we identify these statements. All statements other than
statements of historical fact included in this press release regarding
anticipated benefits for the Company in terms of reduced network
operating costs and accelerated improvements in its cellular network
infrastructure quality and capacity as a result of entering into the
network sharing agreement with Hot Mobile and any statements regarding
other future events or our future prospects, are forward-looking
statements. These forward-looking statements are based on management’s
current beliefs and expectations, and are not guarantees of future
performance. Future results may differ materially from those anticipated
by these forward-looking statements in the event that, among other
potential risks, credit or payment difficulties which will make it
difficult for any of the parties to contribute effectively to the
financing of the JV; the elimination of network sites results in lower
operational savings than expected; other Israeli authorities do not
approve the network sharing agreement or require changes which would
render the agreement unattractive from the Company’s perspective; the JV
experiences management deadlock; or the parties' existing agreements
with other Israeli telecommunications companies limit the parties'
ability to realize their objectives. If such risks materialize, it may
not be possible to establish the JV as the parties intend or at all, the
benefits from the JV may be less than anticipated, and the Company may
experience unexpected costs for technical, legal or other matters which
may arise in connection with its efforts to implement the network
sharing agreement. For a description of other risks potentially
impacting the Company’s business and strategic development, see the
Company's Annual Report on Form 20-F filed with the SEC and published
on the Company’s website (http://www.orange.co.il).
About Partner Communications
Partner
Communications Company Ltd. ("Partner") is a leading Israeli provider of
telecommunications services (cellular, fixed-line telephony and internet
services) under the orange™ brand and the 012 Smile brand. Partner’s
ADSs are quoted on the NASDAQ Global Select Market™ and its shares are
traded on the Tel Aviv Stock Exchange (NASDAQ and TASE: PTNR). For more
information about Partner, see: www.orange.co.il/en/Investors-Relations/lobby/
Contacts:
Mr. Ziv Leitman, Tel:
+972-54-781-4951
Chief Financial Officer
or
Ms. Elana
Holzman, Tel: +972-54-781-4383
Head of Investor Relations
E-mail:
investors@orange.co.il