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Israeli Cell Phone Giants in $150 Million Court Battle

Cellcom, Israel’s biggest mobile phone provider, said on Monday Golan Telecom has filed a lawsuit in an Israeli court, declaring it does not owe the company 600 million shekels ($158 million) for past national roaming payment differences.

“The company believes this lawsuit is unfounded, in contradiction to the binding national roaming agreement … and the company intends to act vigorously in order to dismiss it,” Cellcom said in a statement.

Golan informed Cellcom that in light of certain unspecified claims it will pay the company a monthly amount of 10.6 million shekels plus value added tax instead of the agreed 21 million shekels for national roaming services already provided by the company.

Cellcom said it intends to take legal action to receive the agreed amount. If Cellcom is unsuccessful in collecting the agreed amount this will have a material adverse effect on the company’s net income for the third quarter of 2016 and onwards, it said.

“In addition, the company has entered a tax assessment agreement with the Israeli tax authorities regarding the company’s income tax for the years 2012-2013, which will have a material positive effect over the company’s third quarter 2016 net income,” it said without providing further details. ($1 = 3.7970 shekels)


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