Orange could pay as much as €90 million if the licensing deal with Partner is terminated within 24 months.
"As part of our new framework agreement with Orange, we are currently conducting a market study regarding use of the Orange brand. The study is aimed at assessing our position within the dynamics of the Israeli telecommunications services marketplace, while examining all of the company's options," said Isaac Benbenisti, CEO of Partner Communications.
The compensation follows Orange CEO Stephane Richard’s comments in June 2015 that he would terminate business in Israel if contracts permitted. He later apologised for his comments.
Partner saw its Q2 profit plunge 80% to $2 million while revenue declined 4% to $277 million. Its mobile customer base at the end of the quarter fell 6% to 2.75 million.