Partner Communications Announces Entering into an Agreement for the Upgrade of Its Existing Networks & the Deployment of Four...
October 26 2010 - 3:46AM
Business Wire
Partner Communications Company Ltd. ("Partner" or "the
Company") (Nasdaq:PTNR)(TASE:PTNR), a leading Israeli
communications operator, announced today that it has entered
last night into an agreement with LM Ericsson Israel Ltd.
("Ericsson") for the upgrade of its existing networks and the
deployment of fourth generation network in Israel (the
"Agreement"). The Agreement includes the upgrade, replacement and
the expansion of certain parts of the Company's existing cellular
and fixed line networks and the maintenance of the networks,
including enhancement of Partner's abilities with respect to the
cellular and fix line ISP services it provides. The commercial
operation of the fourth generation network by Partner is subject to
the allocation of the relevant frequencies by the Ministry of
Communications.
The term of the Agreement will be effective from the date of
signature and until December 31, 2014, whereas the replacement of
the Company's switches and radio equipment is scheduled to be
carried out by the end of the year 2012.
The transaction will result in accelerated depreciation of the
replaced equipment, throughout the replacement period, whereas the
main impact of the accelerated depreciation will occur during the
years 2011 and 2012. As of September 30, 2010, the fixed assets,
which the Company intends to replace, minus the accumulated
depreciation, is approximately US$ 40 million. The transaction will
facilitate in the preplanning of the multi year budget.
The total net amount, following all discounts and settlements,
some of which are conditioned, that Partner will be required to
pay, in quarterly installments throughout the term of the
Agreement, for the capital expenditure and maintenance services is
approximately US$ 100 million.
Commenting on the Agreement, Mr. Gelbard, Partner's CEO, stated:
"Since the Company was founded, it has led the communications
market in Israel in establishing the first GSM network in Israel as
well as establishing the first third generation network that was
launched in Israel. The content of the Agreement signed, will
enable Partner to continue leading the technological arena in the
communications market while upgrading its technological abilities
and establishing the first fourth generation network in Israel. The
new network is intended to meet Partner's needs with respect to its
cellular and fixed line networks and will bring a significant
improvement and enhancement in the level of Partner's network
performances and the services that Partner provides and intends to
provide to its customers in the coming years, noting, inter alia,
the anticipated growth in Partner's customers consumption of
communication services – both data (content) services and fixed
line and cellular services".
Forward-Looking
Statements
This press release includes 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 "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 our future
performance, plans to increase revenues or margins or preserve or
expand market share in existing or new markets, reduce expenses and
any statements regarding other future events or our future
prospects, are forward-looking statements.
We have based these forward-looking statements on our current
knowledge and our present beliefs and expectations regarding
possible future events. These forward-looking statements are
subject to risks, uncertainties and assumptions about Partner,
consumer habits and preferences in cellular telephone usage, trends
in the Israeli telecommunications industry in general, the impact
of current global economic conditions and possible regulatory and
legal developments. For a description of some of the risks we face,
see "Item 3D. Key Information - Risk Factors", "Item 4. -
Information on the Company", "Item 5. - Operating and Financial
Review and Prospects", "Item 8A. - Consolidated Financial
Statements and Other Financial Information - Legal and
Administrative Proceedings" and "Item 11. - Quantitative and
Qualitative Disclosures about Market Risk" in the Company's 2009
Annual Report (20-F) filed with the SEC. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed
in this press release might not occur, and actual results may
differ materially from the results anticipated. We undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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. The Company provides mobile communications services to over
3 million subscribers in Israel. 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).
Partner is an approximately 45%-owned subsidiary of Scailex
Corporation Ltd. ("Scailex"). Scailex's shares are traded on the
Tel Aviv Stock Exchange under the symbol SCIX and are quoted on
"Pink Quote" under the symbol SCIXF.PK. Scailex currently operates
in two major domains of activity in addition to its holding in
Partner: (1) the sole import, distribution and maintenance of
Samsung mobile handset and accessories products primarily to the
major cellular operators in Israel (2) management of its financial
assets.
For more information about Scailex, see
http://www.scailex.com.
For more information about Partner, see
http://www.orange.co.il/investor_site.
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