French telecom giant Orange signed Tuesday a deal to terminate its brand license agreement with Israeli communications firm Partner within two years.The new deal, released by Partner to the Tel Aviv Stock Exchange, provides both Orange and Partner the right to terminate their current cooperation, under which Partner operates under Orange's brand in Israel.

If Partner does not exercise its right to terminate the cooperation within 12 months, either Partner or Orange may terminate it during the following 12 months, the deal read.

Orange agreed to pay Partner maximum payments of 90 million euros (about 44.7 million US dollars) should the agreement be terminated within 24 months.


Partner had renewed its contract with Orange in March to use its brand for another 10 years.

The deal put an end to a controversy sparked by Orange's CEO Stephane Richard, who said he would end his contract with Partner "tomorrow" if not for heavy fines.

Israel reacted angrily to Richard's comment, accusing him of bowing to the Palestinian boycott call against Israel.

On June 12, following week-long official protest from Israel to France, Richard arrived in Israel and offered his apology to the Israeli Prime Minister Benjamin Netanyahu.

"I regret deeply this controversy and I want to make totally clear that Orange as a company has never supported and will never support any kind of boycott against Israel," he said.