Orange breaks its dangerous liaison with Israel
In this posting, reports that Orange is ditching Israel from 1) Business Insider and 2) AP; 3)the clarification by Orange CEO; 4) Notes and links
Customers visit an Orange mobile company store decorated with Israeli flags at a Jerusalem mall June 5, 2015. Photo by Ronen Zvulun / Reuters
Israel sees red over Orange plans to axe ties
By Laurent Lozano, AFP / Business Insider
June 04, 2015
Jerusalem – French telecoms giant Orange said on Thursday it wanted to withdraw its brand from Israel just hours after its chief executive came under fire for giving in to a pro-Palestinian campaign.
Orange, which is partly controlled by the French government, insisted its decision to end its brand-licensing agreement with Partner, Israel’s second largest mobile operator, was not politically motivated.
But Israel lashed out at the decision, which appeared to be related to Partner’s operations in the occupied West Bank.
Citing its own “brand development strategy”, Orange said it did not wish to maintain a brand presence in countries “in which is it not an operator”, while distancing itself from the politics.
“In this context, and while strictly adhering to existing agreements, the Group ultimately wishes to end this brand licence agreement,” it said.
“The Orange Group… does not engage in any kind of political debate under any circumstance,” it said.
The storm erupted on Wednesday when Orange chief executive Stephane Richard told reporters in Cairo that the company was planning to withdraw from Israel.
His remarks touched a raw nerve in the Jewish state which is growing increasingly concerned about global boycott efforts and the impact on its image abroad.
It drew a furious response from Israeli officials as well as from Partner, which is not a subsidiary but operates under the Orange brand name.
“The black side of Orange” said the top-selling Yediot Aharonot, while Israel HaYom, a staunch backer of right-wing Prime Minister Benjamin Netanyahu, ran a headline reading: “Orange is no longer a partner.”
Deputy foreign minister Tzipi Hotovely wrote to the Orange boss urging him “to clarify the matter” and warning him not to become party to “the industry of lies which unfairly targets Israel”.
And Isaac Benbenisti, who becomes chairman of Partner on July 1, said he was “very, very angry”, accusing Richard of caving in to “very significant pressure” from pro-Palestinian activists and joining a global campaign to isolate Israel.
– End of the affair –
Richard’s remarks dominated the headlines in all of Israel’s main media outlets on Thursday where he was immediately cast as a supporter of the boycott movement.
Although the Orange boss did not directly refer to the question of settlements, his remarks in Cairo came after the publication on May 6 of a report [Les liaisons dangereuses d’Orange dans le territoire palestinien occupé] accusing the telecoms giant of indirectly supporting settlement activity through its relationship with Partner.
Compiled by five mainly French NGOs and two trade unions, the report accuses Partner of building on confiscated Palestinian land, and urges Orange to cut business ties and publicly declare its desire to avoid contributing to the economic viability of the settlements.
The international community regards all Israeli construction on Palestinian land seized during the 1967 Six-Day War as illegal.
Challenged in Cairo, Richard said: “Our intention is to withdraw from Israel. It will take time” but “for sure we will do it”.
“I am ready to do this tomorrow morning… but without exposing Orange to huge risks.”
Orange says it holds no shares or voting rights in Partner Communications, nor does it have any influence over the firm’s strategy, and that it does not have any other business activity in Israel.
Orange and Partner are linked by a licensing agreement which allows the Israeli firm to use its brand and logo in exchange for a fee. The contract was signed in 1998, two years before the telecoms giant was acquired by France Telecom.
The contract, initially open-ended, was recently amended by Orange and now expires in 2025.
Orange is present in 20 countries and the brand licensing agreement with Partner is the only one with a firm that is not a subsidiary.
– Anti-Israel is ‘in’ –
The crisis comes after days of introspection in Israel over its place in the world, with the government railing against what it has denounced as a campaign of delegitimisation.
Israel has been struggling to tackle a growing Palestinian-led boycott campaign which has had a number of high-profile successes.
Known as the BDS movement — boycott, divestment and sanctions — it aims to exert political and economic pressure over Israel’s occupation of the Palestinian territories in a bid to repeat the success of the campaign which ended apartheid in South Africa.
This week, Britain’s National Union of Students voted to affiliate itself with the BDS movement, in a move which drew a sharp rebuke from Netanyahu.
Last week, Israel narrowly avoided expulsion from FIFA after the Palestinians withdrew a resolution calling on it to ban its Israeli counterpart over restrictions on Palestinian footballers and the presence of five teams inside Jewish settlements.
The boycott movement was even debated in parliament on Wednesday.
“It’s not politically correct to be antisemitic today but it’s super ‘in’ to be anti-Israel,” Justice Minister Ayelet Shaked told MPs.
Pyrrhic victory for the incongruous placement of the national flag inside the “Partner Orange” Communications Company offices in the city of Rosh Haain, Israel, Thursday, June 4, 2015. Photo by Dan Balilty /AP
Orange’s pullout from Israel gives lift to boycott movement
By Josef Federman, Associated Press
June 04, 2015
JERUSALEM — French telecom giant Orange SA’s declaration that it wants to cut business ties with Israel has given a boost to the burgeoning anti-Israel boycott movement while also drawing a sharp rebuke from Prime Minister Benjamin Netanyahu on Thursday.
The move bodes poorly for Israel at a time of growing international anger over its West Bank settlements and could potentially put almost any Israeli company in the crosshairs of the boycott campaign. It also has illustrated just how deeply intertwined Israeli settlements are with the rest of the country.
Netanyahu responded angrily on Thursday, calling on “the French government to publicly repudiate the miserable statement and miserable action by a company that is under its partial ownership.”
The remarks came a day after Orange’s chief executive Stephane Richard said he would end his company’s relationship with Partner Communications Ltd. “tomorrow” if he could, but that he was bound by a contract for the time being. He cited the company’s sensitivity to Arab countries. Partner licenses the Orange brand name in Israel.
Richard’s announcement caused uproar in Israel.
“The absurd drama in which the democracy that observes human rights — the state of Israel — and which defends itself from barrages of missiles and terrorist tunnels, and then absorbs automatic condemnations and attempted boycotts, this absurd drama will not be forgiven,” Netanyahu also said.
Pro-Palestinian activists in France have been pushing for Orange to end the relationship over Partner’s activities in Israeli settlements. The settlements, built on land the Palestinians want for a future state, are seen as illegitimate by the international community.
With Richard’s comments, Orange appeared to becoming the largest and best-known company to yield to pressure from a global movement calling for boycotts, divestment and sanctions against Israel.
Israeli officials say the so-called BDS movement is not out to promote peace, but instead aims to “delegitimize” the country’s very existence as a Jewish state. They point to the grassroots BDS movement’s support for millions of Palestinian refugees to return to ancestors’ homes in what is now Israel. Israel rejects the “right of return,” saying it would end the country’s character as a Jewish and democratic state.
In a statement issued in Paris, Orange said it sought to clarify that it wants to pull out of Israel for business reasons, not political ones.
The company said it doesn’t want to maintain a presence in countries where Orange itself is not a phone provider, and that the move is “in conformity with its brand policy.” Orange said it “has no reason to take part … in a debate of a political nature.”
Other Israeli officials also denounced Richard’s comments.
Culture Minister Miri Regev called on the French government to “show zero tolerance for anti-Semitism.” She also urged Jewish customers of Orange in France and around the world to drop their service and switch carriers.
The French government, which did not immediately comment on Richard’s announcement, has good relations with Israel and accusations of antisemitism are a sensitive issue — especially in the wake of attacks by Islamic radicals who killed 17 people in a kosher supermarket and a satirical newspaper in January. France is home to Western Europe’s largest Muslim and Jewish communities and has sought to maintain good ties with Israel’s government as well as Arab allies.
At the same time, the BDS movement has been active in France, and staged a protest at Orange’s annual shareholder meeting last month. Activists have also called attention to activities in Israel of French companies Danone, L’Oreal, hotel chain Accor and energy company Veolia.
Orange, one of the world’s largest telecom companies, provides mobile phone services in about 30 countries. It says it has about 200 million customers worldwide, and declared revenue last year of 39 billion euros ($44 billion). The French government holds a roughly 13.5 percent stake in Orange.
The BDS movement has been showing increasing signs of traction. Several high profile artists have canceled performances in Israel and the movement has also become increasingly popular on U.S. college campuses.
“The boycotters of Israel are not looking … to partition the land of Israel, but to erase the state of Israel,” Justice Minister Ayelet Shaked said this week. “This is antisemitism under a new guise.”
The BDS gains have accompanied an official Palestinian campaign of targeting Israel in international institutions like the United Nations and the International Criminal Court. Last week, Israel fended off a Palestinian attempt to kick it out of the global soccer body FIFA.
The Palestinians say such tactics are necessary after more than 20 years of failed peace efforts. The Palestinians claim the West Bank, east Jerusalem and the Gaza Strip — lands captured by Israel in the 1967 Mideast war — for their state. With more than 550,000 Israelis now living in settlements in the West Bank and east Jerusalem, they say that time is running out for a two-state solution.
“The Israeli reaction to the boycott movement means that our political movement began to affect them and to scare them,” said Nabil Shaath, a senior Palestinian official.
Partner was targeted because it keeps communications equipment in the West Bank that serve Jewish settlers. It also “sponsored” Israeli military units that took part in last year’s Gaza war by giving soldiers discounted service. Many local companies have similar partnerships in Israel, where military service is mandatory.
But virtually any Israeli company could come under scrutiny. Israeli banks, for instance, have branches in settlements and lend mortgages to residents. Israeli gas stations and supermarkets operate in settlements, and every major company is likely to employ someone who lives in a settlement.
Isaac Benbenisti, the incoming chief executive of Partner Communications, said he was “outraged” by Orange’s decision. “The story is not a story about Partner and Orange. The story is a story about the state of Israel that is under a worldwide attack, mainly in western Europe, by sources that want to hurt us,” he told The Associated Press.
As Netanyahu faces growing pressure to re-launch peace talks, he must now also search for a formula that can address the world’s anger over the settlements while keeping his new government intact. The narrow coalition is dominated by pro-settler hardliners who oppose Palestinian independence.
Since winning re-election, the Israeli leader has tried to backtrack on a campaign statement that he would not allow the establishment of a Palestinian state on his watch. Earlier this week he renewed a call to restart peace talks without any preconditions. But so far, few leaders appear to be taking him seriously. In an Israeli TV interview, President Barack Obama said the international community remains skeptical.
U.S. Ambassador Dan Shapiro told Israel’s Army Radio on Thursday that Washington would continue to oppose “inappropriate one-sided criticism against Israel.” But he said this job would be harder to do because peace negotiations are not taking place.
“Talks were always the most effective tool to beat these efforts,” he said. “So if we don’t have any talks now, and most of the world doesn’t think they will take place anytime soon, how can we fight boycott, sanctions and delegitimization, and how can we keep two state solution realistic?”
Stephane Richard, the chief executive officer of French mobile phone company Orange, gestures as he speaks during a press conference in Cairo, Egypt, Wednesday, June 3, 2015. Richard said he would end his company’s relationship with an Israeli operator that pays to use its name “tomorrow” if he could, but that to do so would be a “huge risk” in terms of penalties. He was holding the news conference Wednesday with Yves Gauthier, the chief executive officer of its Egyptian brand Mobinil. Photo by Thomas Hartwell / AP
Orange in Israel ‘for good’: CEO
By AFP
June 06, 2015
Paris – The chairman of Orange said Saturday that the French telecoms group is in Israel “to stay” after a row erupted over the group’s plan to review its business ties with an Israeli telecoms firm.
Stephane Richard told AFP he “sincerely regrets” the furore sparked Wednesday when he said that Partner, Israel’s second largest mobile operator, would end its brand-licensing agreement with Orange.
A furious Israeli Prime Minister Benjamin Netanyahu had slammed the decision by Orange, which is part state-owned, as “miserable.”
Although the Orange boss said earlier this week that the move was not political, his remarks in Cairo came after the publication on May 6 of a report accusing the telecoms giant of indirectly supporting Jewish settlement activity through its relationship with Partner.
Compiled by five mainly French NGOs and two trade unions, the report accused Partner of building on confiscated Palestinian land, and urged Orange to cut business ties and publicly declare its desire to avoid contributing to the economic viability of the settlements.
The Orange boss’s comments this week touched a raw nerve in Israel, which is growing increasingly concerned about global boycott efforts and the impact on its image abroad.
“Orange does not support any form of boycott, in Israel or anywhere else in the world,” Richard told AFP in an email.
“Our decision on the use of the brand is motivated — as it is all over the world — solely by our brand strategy,” he said.
“Let me make it very clear that the Orange Group is in Israel to stay.”
Israel is the only country where Orange operates without using its brand name, under a licencing agreement signed before France Telecom acquired Orange in 2000. The French giant changed its name to Orange in 2013.
Orange and Partner agreed in April to have the previously open-ended licence expire on March 31, 2025.
Richard insisted this week that it was a purely business decision, not political.
The fresh Franco-Israeli spat came after a high-profile diplomatic row in December when French lawmakers voted in favour of recognising Palestine as a state.
France’s top diplomat Laurent Fabius also said that Paris and the European Union “have a consistent policy on settlement-building that is known to all.”
Notes and links
The five NGOs that compiled the report are FIDH, (Fédération Internationale des Ligues des Droits de l’Homme, International federation for human rights), Who Profits, Al Haq, CCFD-Terre Solidaire (Catholic committee against hunger and for development – solidarity across the world), Association France-Palestine Solidarité
What Orange CEO said in Cairo
Orange CEO says he would end link to Israel operator ‘tomorrow’ if not for penalty risk
Associated PressCAIRO — French telecoms giant Orange SA would end its relationship with an Israeli operator that pays to use its name “tomorrow” if it could, but to do so would be a “huge risk” in terms of penalties, its CEO said Wednesday.
Speaking at a news conference in Cairo to lay out plans for the years ahead in Egypt, Stephane Richard said his company intends to withdraw the Orange brand from Israel as soon as possible, but that the move would take time.
“I am ready to abandon this tomorrow morning but the point is that I want to secure the legal risk for the company. I want to terminate this, once again, but I don’t want to expose Orange to a level of risk and of penalties that could be really sizable for the company.”
French reports [online translation services are available]
Orange évoque son retrait d’Israël, qui demande des excuses
Dans un rapport intitulé « Les liaisons dangereuses d’Orange dans le territoire palestinien occupé », plusieurs organisations ont appelé l’État français actionnaire à faire plier l’opérateur. Le Monde [Several organisations have called on the French state to put pressure on the operator [Orange].
Orange prêt à rompre son contrat avec Partner : une annonce importante qui doit s’accompagner de mesures concrètes Association France Palestine Solidarite [Orange is ready to break its contract with Partner: an important announcement which must be accompanied by concrete action.]