Cellcom, Pelephone sign deal on network sharing

Cellcom announced it has entered into an agreement with Pelephone and Golan Telecom for the construction and operation of a shared 4G radio network, an agreement with Pelephone for the sharing of passive elements of GSM sites for existing networks and an Indefeasible Right of Use (IRU) agreement with Golan regarding the company's 2G and 3G radio networks. As a result of the deal, each company will dismantle 45 percent of its network sites, saving tens of millions of shekels in leasing and management fees. 

The newly created entity, equally owned by Cellcom and Pelephone, will manage and maintain all of the passive elements of cell sites and unify passive elements of network sites of the company and Pelephone, currently used for the 2G and 3G networks and will also manage and maintain the radio networks for the company and Pelephone, generally for a period of at least 15 years. Costs shall be divided generally between Cellcom and Pelephone, subject to certain adjustments. Each operator shall bear its own costs for such services and will continue to operate its own core network. 

Golan will be granted a right of use to the company's 2G and 3G radio network (generally for at least 5 years and for as long as they are operational), which will replace Golan's current national roaming agreement with Cellcom. Golan shall continue to operate its own core network.