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.
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