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.

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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)

—Reuters

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