cellcom israel ltd (CEL) Key Developments
Cellcom Israel Announces 4G Frequencies Tender Published
Jul 2 14
Cellcom Israel Ltd. announced that the Israel Ministry of Communications published a tender for 1800MHz frequencies, for 4G technologies (such as LTE, LTE Advanced). Participation in the tender is open for all current Mobile Network Operators and Mobile Virtual Network Operators as well as other entities meeting certain conditions.
Cellcom Israel Ltd. Announces Appeal Against Dismissal of Purported Class Action Filed Against the Company
May 28 14
Cellcom Israel Ltd. announced that further to the company's report of the dismissal with prejudice of a purported class action against the company reported on November 2011, an appeal was filed by the plaintiffs challenging the dismissal. The purported class action alleged that the company raised tariffs for business customers unlawfully and in violation of its agreements with them. If the lawsuit is certified as a class action, the total amount claimed from the company is estimated by the plaintiffs to be at least hundreds of millions of NIS.
Cellcom Israel Ltd. and Golan Telecom Ltd. Sign Network Sharing Agreement
May 26 14
Cellcom Israel Ltd. and Golan Telecom Ltd. signed a network sharing agreement. Since its inception, Golan has used Cellcom's nationwide network to provide its services but the new agreement sees network sharing in the full sense of the term and for al technologies: 2G, 3G, and 4G. The significance of the agreement is that Golan Telecom will only have wireless operations and will not own antennas. In effect, from now on Golan Telecom will be a kind of MVNO virtual operator plus frequencies.
Cellcom Israel Ltd. and Pelephone Communications Ltd. in Talks on Network Sharing Agreement
May 18 14
Cellcom Israel Ltd. and Pelephone Communications Ltd. announced that they have opened talks on a new network sharing agreement that will be submitted to the Ministry of Communications and the Antitrust Authority for approval. The new agreement will be based on the Ministry of Communications' policy statement, which states that it is prepared to consider full network sharing between the carriers, except for sharing frequencies. Network sharing does not distinguish between 2G, 3G, and 4G, and therefore creates an opportunity for major restructuring in the mobile industry. The policy statement explicitly states that the carriers can share all network components except for frequencies. This means that they can greatly reduce the number of sites for all technologies, not just 4G, theoretically saving hundreds or even thousands of antennas nationwide. The policy statement allows many areas of sharing by the carriers. In general, they can divide Israel into two, promising each other roaming. Alternatively, they can optimize antennas and make new plans for deploying antennas and sharing costs.
Cellcom Israel Ltd. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2014
May 14 14
Cellcom Israel Ltd. announced unaudited consolidated earnings results for the first quarter ended March 31, 2014. For the quarter, the company reported revenues of ILS 1,258 million against ILS 1,130 million a year ago. Operating profit was ILS 139 million against ILS 185 million a year ago. Profit before taxes on income was ILS 93 million against ILS 158 million a year ago. Profit for the period was ILS 67 million against ILS 114 million a year ago. Profit for the period attributable to owners of the company was ILS 67 million or ILS 0.67 per diluted share against ILS 114 million or ILS 1.14 per diluted share a year ago. Net cash from operating activities was ILS 278 million against ILS 453 million a year ago. Acquisition of property, plant, and equipment was ILS 88 million against ILS 64 million a year ago. Acquisition of intangible assets was ILS 26 million against ILS 25 million a year ago. EBITDA was ILS 314 million against ILS 340 million a year ago. Net debt stands at ILS 3.6 billion. Improving profitability is due to the strategy of keeping the tight control over expenses and maintaining efficient operations.