Orange and Partner sign agreement to end brand deal in Israel

Orange and Partner sign agreement to end brand deal in Israel

Orange and Partner Communications have signed an agreement to end their brand licensing deal in Israel.

Under the latest deal, should Partner not exercise its right to end their brand agreement within 12 months, either operator could terminate it in the following 12 months. 

In addition the two companies will use a detailed market study to assess Partner’s position within the Israeli marketplace. 

The deal also provides for total payments of €40 million to Partner from signing the agreement until completion of the market study. The company will receive an additional €50 million should the brand license agreement 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 the French operator would be restricted from engaging in telecoms services. 

The announcement follows comments from Orange’s CEO Stephane Richard earlier this month that he would terminate the arrangement with the Israeli company “tomorrow morning” if contracts permitted.  

Richard reportedly said Orange intends to withdraw its brand from Israel following allegations that the operator was supporting settlements in the occupied Palestinian territories which France and the European Union consider illegal. 

Richard later apologised and said his comments had been misinterpreted. "I regret, deeply, this controversy," he said. "I want to make it totally clear that Orange as a company has never supported and will never support any kind of boycott against Israel." 

Of the latest agreement, Orange's deputy CEO Pierre Louette said: “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.”

Gift this article