Bloomberg News

Hot Drops to Lowest Since 2010 on Increased Mobile Competition

May 15, 2012

Hot Telecommunication System Ltd. (HOT) fell to the lowest level since July 2010 on bets wireless competition may hurt profits at Israel’s second-largest fixed- line operator as it starts selling mobile-phone plans.

Shares of Hot, which also provides cable television services, plunged 8.7 percent to 34.50 shekels at the close in Tel Aviv.

Golan Telecom, partly owned by French entrepreneur Xavier Niel, started mobile-phone services yesterday offering unlimited voice and messaging at 99 shekels ($26) a month and selling SIM cards without handsets. Hot said the same day its unit will start mobile-phone services at 89 shekels a month for unlimited use.

“The feeling is that Golan Telecom caught Hot off guard and Hot reacted under pressure, offering prices that are much lower than what it planned originally,” Ori Licht, head of equity research at I.B.I.-Israel Brokerage & Investments Ltd. said in a telephone interview.

To contact the reporters on this story: David Wainer in Tel Aviv at dwainer3@bloomberg.net; Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus