Orange has signed a new partnership agreement with Israel-based mobile operator Partner Communications that is intended to build on their existing deal, under which Partner uses the Orange brand in Israel.
The two companies will use a detailed market study to assess Partner’s position within the dynamics of the Israeli telecommunications services marketplace.
Partner will have the right to terminate its existing brand licensing agreement within the next 12 months. If it does not exercise that right, either Partner or Orange will have the right to terminate the deal during the following 12 months.
Orange will meanwhile pay €40 million to Partner between signing the agreement and completion of the market study, and an additional €50 million should the BLA be terminated within 24 months.
In the event of a rebranding by Partner, all Orange R&D and innovation activities in Israel would be rebranded with the Orange name, although Orange would be restricted from engaging in telecommunications services.
“Orange is pleased to enter into this new framework for our relationship. This resulted from our productive discussions over the past weeks. The Israeli telecommunications market study should provide a clear view to determine the best option for Partner, and we are committed to support this objective. For Orange, Israel is a strategically important country and we have a long term commitment to it, including our innovation activities through the Orange affiliates in Israel,” said Orange deputy CEO Pierre Louette.
Partner chairman Adam Chesnoff said, “We are pleased to have reached a new agreement with Orange further to our 17-year relationship with the brand and to have established a new framework for our future relationship with Orange.”