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| French Telecom Orange Reaches Deal to Potentially Part With Israeli Provider | French Telecom Orange Reaches Deal to Potentially Part With Israeli Provider |
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| JERUSALEM — The French telecommunications company Orange has reached a deal allowing for a parting of ways with an Israeli mobile service provider, weeks after a squabble over a possible withdrawal of the brand from Israel’s cellular market whipped up a diplomatic storm. | |
| Under a previous agreement, the Israeli provider, Partner Communications, was licensed to use the Orange brand until 2025. But the two companies announced on Tuesday that they had signed a new framework agreement that gives each side the right to terminate the brand license agreement in the next two years. | Under a previous agreement, the Israeli provider, Partner Communications, was licensed to use the Orange brand until 2025. But the two companies announced on Tuesday that they had signed a new framework agreement that gives each side the right to terminate the brand license agreement in the next two years. |
| Stéphane Richard, the chairman of the French company, which is partly state-owned, said in Cairo on June 3 that he wished he could end Orange’s licensing agreement with Partner Communications “tomorrow morning.” The remarks were widely interpreted as a response to a growing movement to boycott companies that operate in Israeli settlements in the occupied West Bank. | Stéphane Richard, the chairman of the French company, which is partly state-owned, said in Cairo on June 3 that he wished he could end Orange’s licensing agreement with Partner Communications “tomorrow morning.” The remarks were widely interpreted as a response to a growing movement to boycott companies that operate in Israeli settlements in the occupied West Bank. |
| Faced with Israeli fury, Mr. Richard sought to clarify his comments, saying that Orange opposed boycotts and that he had been speaking from a purely business perspective, not a political one. He insisted that he had been misunderstood. | Faced with Israeli fury, Mr. Richard sought to clarify his comments, saying that Orange opposed boycotts and that he had been speaking from a purely business perspective, not a political one. He insisted that he had been misunderstood. |
| Mr. Richard then took the unusual step of coming to Israel to apologize to Prime Minister Benjamin Netanyahu, who had denounced Mr. Richard’s earlier statement as “miserable.” | Mr. Richard then took the unusual step of coming to Israel to apologize to Prime Minister Benjamin Netanyahu, who had denounced Mr. Richard’s earlier statement as “miserable.” |
| Partner executives in Israel said at the time that the Orange brand, in use here for 17 years, may have been irrevocably damaged in the eyes of Israeli consumers and that they were considering suing Orange. | Partner executives in Israel said at the time that the Orange brand, in use here for 17 years, may have been irrevocably damaged in the eyes of Israeli consumers and that they were considering suing Orange. |
| The new deal involves a joint study of the Israeli telecommunications market to assess Partner’s position in it and provides for an initial payment of 40 million euros, about $44.6 million, to Partner and an additional €50 million should the brand licensing agreement be terminated within 24 months. Orange said recently that it did not wish to maintain the presence of the brand for telecommunications services in countries in which it is not an operator, like Israel. | The new deal involves a joint study of the Israeli telecommunications market to assess Partner’s position in it and provides for an initial payment of 40 million euros, about $44.6 million, to Partner and an additional €50 million should the brand licensing agreement be terminated within 24 months. Orange said recently that it did not wish to maintain the presence of the brand for telecommunications services in countries in which it is not an operator, like Israel. |
| Orange has, however, pledged to continue investing in other areas of Israel’s digital market. | Orange has, however, pledged to continue investing in other areas of Israel’s digital market. |
| Pierre Louette, a deputy chief executive of Orange, said in a statement that, “For Orange, Israel is a strategically important country and we have a long-term commitment to it.” | Pierre Louette, a deputy chief executive of Orange, said in a statement that, “For Orange, Israel is a strategically important country and we have a long-term commitment to it.” |
| In the event of a rebranding by Partner, Orange said, all other Orange research, development and innovation activities in Israel would take on the Orange name. | In the event of a rebranding by Partner, Orange said, all other Orange research, development and innovation activities in Israel would take on the Orange name. |
| Whatever the reasons behind Orange’s decisions, the Partner episode shined a spotlight on the boycott, divestment and sanctions campaign in Israel and abroad. | Whatever the reasons behind Orange’s decisions, the Partner episode shined a spotlight on the boycott, divestment and sanctions campaign in Israel and abroad. |
| Omar Barghouti, a founder of the boycott movement, said the new deal was a step forward for the campaign, writing in an email Tuesday that despite Mr. Richard’s “groveling” during his visit to Israel, “Orange is intent on dumping Partner after all.” |