(photo credit: Bloomberg)
Mobile carrier Partner Communications Ltd. has expanded its license agreement
with France Telecom SA unit Orange Brand Services Ltd.
controlling shareholder, Hutchison Telecommunications International Ltd. was a
strategic partner of France Telecom, which gave Partner access to information
and transactions at preferred prices.
Current controlling shareholder,
Ilan Ben-Dov has made a similar deal with France Telecom.
and Partner agreed on the royalties that Partner will pay for use of the Orange
brand. The companies also agreed on wider cooperation, which will allow Partner
to buy end-user equipment via France Telecom and to seek France Telecom’s help
for the mobile and landline services. Partner considers the agreement as turning
France Telecom into its strategic partner.
Partner will reportedly pay
NIS 25 million in royalties per year for use of the Orange brand, based on a
agreed-upon formula of a percentage of revenue.
The company said that
France Telecom and Deutsche Telekom recently agreed to jointly buy enduser
equipment, and that Partner can join the collaboration to buy equipment at
similar prices. France Telecom is also a leading global IPTV services provider,
and has R&D operations in this field in Israel. Partner, which plans to
provide IPTV services, can collaborate with France Telecom in
Partner’s share price rose 2.1 percent on Nasdaq on Friday to
$19.35, giving a market cap of $3.01 billion, and rose 3% by early afternoon on
the TASE today to NIS 64.38.