Partner Expands IBC Fiber Network Deal, Committing at Least $10 Million Annually
Translated & summarized from Bizportal by baba
Partner Communications has expanded its fiber infrastructure agreement with IBC, committing to lease up to 70,000 lines by 2030. The deal includes a minimum annual payment of 39 million shekels (approximately $10 million USD) and a 15-year commitment period for each leased line. This allows Partner to expand its service reach without building new infrastructure in areas covered by IBC's network.
The story in 6 lines · by baba
- Partner Communications will lease up to 70,000 fiber lines from IBC by 2030.
- The expanded deal requires a minimum annual payment of 39 million shekels ($10 million USD).
- A 'Take or Pay' clause ensures payment for committed lines, regardless of actual usage.
- Commitments are for 15 years per leased line installment, with flexibility starting in 2035.
- Partner gains an option to lease an additional 30,000 lines.
- The agreement allows Partner to expand services in IBC-covered areas without new infrastructure.
Partner Communications is significantly expanding its agreement with fiber infrastructure company IBC, operating under the brand Unlimited. The Israeli telecom giant announced it has signed an addendum to an existing contract for internet infrastructure services over IBC's fiber network. Under the new terms, Partner commits to gradually increasing its leased fiber lines to 70,000 by 2030, with a minimum annual financial commitment of approximately 39 million shekels (around $10 million USD). This expansion will occur in four annual installments starting January 2027 through January 2030. The agreement includes a "Take or Pay" clause, meaning Partner must pay for the committed lines even if fewer are actively used, ensuring a stable long-term expense regardless of customer adoption rates. The full commitment of 70,000 lines, at speeds up to 1 gigabit, includes lines Partner already uses on IBC's network. The annual payment for the full 70,000 lines will not be less than 39 million shekels, excluding operational and speed upgrade costs. Each installment's commitment period lasts 15 years, with the final one ending in late 2044. However, Partner can reduce its commitment starting January 2035, subject to certain conditions. Additionally, Partner has secured an option to lease up to 30,000 more lines over ten years, which would incur further 15-year commitments. IBC provides fiber infrastructure services to other telecom operators. Partner already operates its own fiber network and utilizes infrastructure from other providers, including Bezeq. This expanded agreement allows Partner to enhance its service in areas covered by IBC's network without needing to build its own infrastructure there.