Alon Israel Oil Company Ltd. mobile virtual network operator (MVNO) unit Alon Cellular Ltd. today launched its mobile operations and is offering a package that links airtime with benefits from sister companies, gas station and convenience stores operator Dor Alon Energy in Israel (1988) Ltd. (TASE:DRAL) and Mega supermarkets of Alon Holdings Blue Square - Israel Ltd. (NYSE: BSI; TASE: BSI). This is the first time that a mobile operator is linking mobile and consumer products.
Alon Cellular's basic price is NIS 0.18 per minute of calls, NIS 0.15 per SMS, and NIS 0.15 per megabit of internet access. The fixed fee is NIS 18 per month. However, the operator's revolution is its linking airtime with purchases of fuel, food, and consumer products. A subscriber who buys NIS 400 worth of fuel at a Dor Alon gas station will receive 40 minutes of free calls, and a subscriber who buys NIS 800 worth of fuel at a Mega supermarket will receive 80 minutes of free calls
Alon Cellular is also the first MVNO to offer international calls. Calls will cost from NIS 0.70 per minute to popular destinations, to NIS 1.80 per minute.
The service is currently offered at 43 Mega stores, under the youphone brand. Alon Cellular will sell end-user equipment, including smartphones and tablets, in order to compete against Israel's mobile operators in this field.
"We are turning shopping into an financial value with no effort," said Alon Group chairman David Wiessman at the press conference marking the launch. Commenting on linking the MVNO with Mega and Dor Alon, he said, "Customers will receive call minutes from their regular shopping at Mega, Dor Alon, and Alonit. Every fill-up and every purchase will be converted into minutes of mobile calls. At the end of each month, the calculation is made and the number of minutes is entered into next month's bill. A tank of gasoline costs an average of NIS 400, which adds up to an average of NIS 800. The average food bill is NIS 2,205 a month."
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2012