Partner CFO Gelman: License extension to 2017 will save NIS 100m per year - TheStreet

"Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD) annual depreciation costs following the extension of its license to 2017 will shrink by NIS 100 million," said Partner CFO Alan Gelman in a company press conference today.

Partner received its original license in 1998, and it was recently extended for another nine years. This will reduce the company's annual $400 million depreciation write off on the license. Partner will post the reduced write off beginning in Q1 2002.

"The cost of customer acquisition in the next 12 months will probably total NIS 426, same as it did in Q4 2001. Still, we are not alone in the market, and things will not develop only according to our actions," said Gelman, hinting the company has no plans to subsidize GPRS cell phones.

"Our added value services in the recent quarter brought in NIS 35 million for the company, or 3.5% of its revenues. This is just the beginning, as we expect a substantial revenue increase from that item this year," he added.