Partner executes fiber optic line agreement with Israel Telecommunication Corp.

Partner Communications announced that on December 21, an agreement was executed between the company and Bezeq – the Israel Telecommunication Corp., regarding the purchase of an indefeasible and irrevocable right of use for 15 years of 120 thousand non-specific fiber optic infrastructure lines in buildings connected to Bezeq’s fiber-optic infrastructure. In accordance with the agreement, the right to use the Fiber Optic Lines will be granted in five equal annual installments, with the first installment beginning on January 1, 2023. The total consideration that the company will pay Bezeq for the right of use in accordance with the agreement is approximately NIS 574M plus VAT for the First Agreement Period, that will be divided into five equal payments, that will be paid at the beginning of each calendar year of the years 2023 until 2027, plus half of the linkage differences, and all in accordance with the terms set forth in the agreement. The company has the option to divide each Installment Amount over a period of five years, with interest to be added at a rate equal to Bezeq’s NIS bond yield at the relevant average duration that will be known at the date of right of use of the Fiber Optic Lines for that installment. The company will also pay annual maintenance fees at a rate of 4% of the consideration, plus linkage differences, in accordance with the terms set forth in the agreement, for all of the Fiber Optic Lines for which the company was granted a right of use until that year. The company has been provided with an option to purchase the right to use 48 thousand additional Fiber Optic Lines, under the same terms, during the first agreement period, as well as an option to extend the period of use for two additional five-year periods each, beyond the first agreement period, at a lower cost per fiber optic line than during the first agreement period.