Cellcom launching triple

Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) plans to launch its triple package telephone, Internet, and television at an all-in price that it is believed will be around NIS 200 monthly. Cellcom has decided not to wait for the Ministry of Communications and for Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), which have still not decided whether to include telephony as part of the wholesale market. Cellcom's triple will compete with that of HOT Telecommunication Systems Ltd. (TASE: HOT).

Details of Cellcom's triple package will be officially unveiled on Wednesday. In the invitation it sent to the press conference the company takes the same line as it took in launching its television service, challenging potential subscribers with the price they currently pay for telecommunications services. It asks what the average payment is to Hot and to satellite television company DBS Satellite Services (1998) Ltd. (YES) for all telecommunications services, and what the price ought to be for a high standard of service.

Mobile carrier Cellcom has for some time been determined to become a telecommunications group. After coming out with its television service earlier this year, its launch of a triple package was only a matter of time. Unlike Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and Xfone, which take the view that without Bezeq's telephony they have little chance of competing in the market, Cellcom is in effect declaring this week that it does not attribute much importance to telephony, and demonstrating faith in its product.

Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2015

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