Orange on Tuesday signed an agreement with Israel’s Partner Communications that paves the way for the companies to end their brand licensing agreement within the next two years.
The French incumbent whipped up a storm of protest earlier in June after CEO Stephane Richard was quoted at a press conference in Egypt as saying he wanted to end Orange’s relationship with Partner and withdraw the brand from Israel as soon as possible.
Richard insisted he was misinterpreted but nevertheless apologised for the remarks, reiterating that the decision to end Orange’s brand licensing agreement (BLA) was influenced by business, rather than political interests.
On Tuesday, Orange and Partner signed a deal that allows the latter to terminate the BLA within the next 12 months. Once that period expires, either Orange or Partner is allowed to end the BLA in the 12 months thereafter.
In the meantime the companies will conduct an analysis of the Israeli telco market in order to establish a suitable path forward for Partner.
"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," said Orange deputy CEO Pierre Louette, in a statement.
In addition, Orange will pay Partner €40 million between now and the conclusion of the market study, and a further €50 million in the event the BLA is terminated in the next 24 months.
"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," said Partner chairman Adam Chesnoff.
