Cellcom Israel Ltd. (CEL), Israel’s biggest mobile-phone provider, declined to its lowest level on record after Golan Telecom Ltd. and Hot Telecommunication System Ltd. (HOT) started their wireless services.
Shares of Netanya, Israel-based Cellcom retreated 3.3 percent to 41.67 shekels at 1:51 p.m. in Tel Aviv, the lowest price since July 2007, when the shares were listed in Tel Aviv. Partner Communications Co. (PTNR), the country’s second biggest cellular company, headed for the lowest close since September 2003, dropping 3.5 percent to 25.66 shekels.
Golan Telecom, partly owned by French entrepreneur Xavier Niel, started services today offering unlimited voice and messaging at 99 shekels ($25.85) a month and selling SIM cards without handsets. Hot Telecom said today it is starting mobile phone services, without disclosing details of the packages offered.
“Golan’s is by far the cheapest package available,” said Gilad Alper, a senior analyst at Excellence Nessuah Investment House Ltd. in Ramat Gan. “Cellcom and Partner will have to emulate this business model, otherwise their cost structure will be too high for this pricing.”
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