Veteran mobile carriers are set to wage war

Following entry of two new carriers to cellular market, sources say prices are set to drop; PM praises the new competition.

May 15, 2012 16:09
1 minute read.
Cellular phones are displayed in a store

Cellular phones are displayed in a store 370 (R). (photo credit: Erik de Castro / Reuters)


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Israel's big three mobile carriers - Cellcom, Orange franchisee Partner, and Bezeq subsidiary Pelephone - will announce new sales campaigns in response to the entry of new carriers into the market and the aggressive price competition that has emerged, sources told Globes on Tuesday.

Sources at the veteran carriers say they are not surprised by the prices offered by the two carriers - HOT Mobile and Golan Telecom - and that the carriers were ready to wage war.

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Mobile market sources said that Cellcom, Partner, and Pelephone would soon announce offers that were just as attractive as those plans offered by HOT Mobile and Golan Telecom. In other words, prices in the market would converge at around NIS 100 per month for all inclusive plans.

On Monday, Pelephone already announced an all-included plan at NIS 119 per month for subscribers whose phone bills exceed NIS 250 a month.

As a result of the aggressive competition on prices, mobile market sources reiterated that the sector was headed for a wave of what they called "drastic and painful" cutbacks. The veteran carriers will apparently soon fire hundreds of employees.

Commenting on the aggressive mobile market competition Tuesday, Prime Minister Binyamin Netanyahu posted on his Facebook page, "The mobile market revolution has already made it possible for every one of you to pay a lot less than you used to pay. Grab the opportunity to pay less."

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