Deal in the fiber optic market in Israel: IBC Unlimited acquires the fiber optic network of the 019 Telzer company, which is owned by the Sela family.
Upon completion of the transaction and receipt of all approvals, IBC Unlimited’s fiber optic network will be expanded to 28 localities and 13,000 households, from Kfar Tavor in the north, through Judea and Samaria to Hatzeva, Ein Yahav and Paran in the south.
The fiber-optic infrastructure deployed in the localities of Beit Hashmonay, Ganei Tal, Kfar Haroeh, Sde Ilan, Mishmar David, Nir Galim, Tushia, Tzofar, Azaria, Ahuzat Barak, Hibat Zion, Ram On, Kfar Shmuel, Gan Yavne and Kfar Maimon will also pass. Owned by IBC Unlimited.
We will explain that IBC’s model is of a full wholesale market, meaning the company lays the groundwork, but the service is provided by telecommunications companies. Thus the acquisition actually brings the good news of the competition to all those dozens of localities.
The Sela family’s decision to leave the field is related to the fact that the company has decided to focus on the cellular and Internet business, its core areas, and not to expand into other areas where it has no relative advantage. Azaria Sela, CEO of 019 Telzer, told Globes that he was happy that the deal with IBC came to fruition after the company underwent a very big change, even though there were other parties interested in the activity.
The deal is interesting because it leaves 019 as the provider that provides the service to customers, but it will no longer own the infrastructure, so it will pay the consideration to IBC for the use of its network, as each provider pays. This reflects IBC’s model as a wholesale company. The Ministry of Communications approved the deal yesterday (Wednesday).
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IBC’s advanced fiber optic network already reaches more than 900,000 connected households in 63 localities throughout the country, from Kiryat Shmona in the north to Eilat in the south. The company is a limited partnership (70%), held in equal shares by HOT, Cellcom and the Israel Infrastructure Fund and by the Israel Electric Corporation (30%).
The company recently won a tender from the Ministry of Communications for the deployment of about 60,000 households in the periphery, including in the Arab sector.