Israel’s Partner Communications notified Orange of its decision to terminate its brand licensing agreement with the France-based group.

Partner, Israel’s second largest operator, reportedly said it will start a process to look for a new brand name, but will continue to provide services under the Orange banner until a further announcement.

Orange acknowledged Partner’s decision in a statement, reiterating that it “will be able to use its brand for its continuing investments in technological innovation in Israel”, as previously announced.

The two companies agreed to terms in June last year that would see the end to their long running licensing agreement, following a well-publicised row involving Orange CEO Stephane Richard.

Richard caused uproar in Israel after stating he would end Orange’s licensing agreement with Partner “tomorrow morning” if contracts allowed, leading to a political spat.

Richard later apologised for the comments.

Under the revised framework, Partner maintained the right to terminate the agreement within a year, and if it did not, Orange then also had the same right during the following 12 months.

As the partnership has been terminated within 24 months of the revised terms, Orange may be forced to pay an additional €50 million to Partner, on top of the €40 million it is already paying the company, under the conditions set in June.

Orange did not mention any additional payment information in today’s statement.