Cellcom makes $241 million bid to acquire NetVision (Israel)

On 03.15.11, In Mobile, By Editor

Cellcom has reportedly offered to acquire its sister company, fixed line voice and broadband operator NetVision, for approximately US$421 million in cash. Both companies are subsidiaries of the IDB Holding conglomerate.

According to Cellcom, NetVision has not responded yet to their proposal and they can provide no assurances that they will enter into any transaction. If an agreement is reached, they intend to fund the purchase price, in whole or in part, with new debt financing arrangements. Should NetVision agree to the deal it would be subject to approval by a majority of those shareholders in both the companies that are not affiliated with IDB Holding, while it would also require a nod from the relevant regulatory authorities.

 

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HOT violated ISP licence terms: NetVision (Israel)

On 01.10.11, In Mobile, By Editor

Israeli telco NetVision has reportedly claimed that HOT Telecommunication Systems, which last month was granted an internet service provider (ISP) licence by the Israeli Ministry of Communications (MoC), has violated the conditions of its new concession.

According to reports, NetVision has handed over documentation to the regulator which it alleges demonstrate that HOT has not only violated the structural separation provisions in its ISP licence, but that the cableco has no intention of complying with them at all.

As previously reports, in awarding HOT an ISP licence the MoC imposed a condition that it must create a separate company to offer ISP services, similar to the setup of incumbent Bezeq, with HOT’s HOT.net unit reportedly filling that role.

But as per NetVision, it can show that HOT’s internet activities are actually managed at the cableco’s offices in Yakum, while it also alleges that the posts at HOT.net are fictitious, because the roles are carried out by existing HOT employees that work simultaneously on internet services alongside the cableco’s other products. NetVision also highlighted that calls made to coordinate reciprocal network connectivity fees between the two companies are carried out by HOT itself.

According to HOT, NetVision petitioned the High Court of Justice even before HOT was awarded an internet access licence, and then withdrew the petition. It now complains, oddly, about activity that has not yet even begun.

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Bezeq’s payment for internet traffic halted by NetVision (Israel)

On 01.28.10, In Mobile, By Editor

www.WirelessFederation.com/news: A payment deal has been unilaterally cancelled by Israeli telco NetVision which it had in place with fixed line incumbent Bezeq. The company expressed its unwillingness to  pay Bezeq under the terms of the arrangement, in which fees owed to the latter are based on the volume of traffic over the network.

Netvision’s move is attributed to a surge in such fees related to internet traffic, however, the company has not yet revealed whether it intends to cancel a similar deal with cableco HOT Telecommunication Systems, as the two companies have a similar agreement, although the price per GB it pays HOT is lower.

Bezeq’s prices are claimed to be too high by Netvision, especially when considering the rising level of internet traffic, but has noted that it has no alternative other than to work with the incumbent.

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Barak ITC 3Q operating profit up 62%

On 11.22.06, In Mobile, By Editor

Israeli alternative operator Barak International Telecommunications Services Corp (Barak ITC) has posted a 62% year-on-year rise in third quarter operating profit, according to local daily Globes. In the three months ended 30 September Barak ITC reported a 4% rise in revenues to ILS179 million (USD41.4 million) and operating profit of ILS29 million; EBITDA was up 43% at ILS39 million. Net profit reached ILS153 million, compared with ILS2 million a year earlier, due to the ‘early discharge of dollar bonds and from financing revenue resulting from the continued fall in the dollar exchange rate’.

According to TeleGeography’s GlobalComms database, last month Israel’s antitrust authority approved the operational merger of Barak ITC and fellow alternative fixed line operator NetVision, as well as corporate services provider GlobCall Communications. The transaction remains subject to it obtaining other approvals, however, and there is no assurance that the transactions will be consummated. Under the terms of the deal, NetVision will purchase 100% of Barak in exchange for 46.5% its shares. Upon completion, NetVision will acquire all of GlobCall in exchange for 7% of the share capital of the merged NetVision-Barak company. The deals value NetVision at between USD122 million and USD142 million, Barak at between USD105 million and USD121 million, and GlobCall at between USD15 million and USD21 million.

Source-  telegeography  Wireless 

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