TEL AVIV Oct 10 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
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,
"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)
(Reporting by Tova Cohen)