IDB Holding Corp. Ltd. (TASE:IDBH) subsidiaries Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and NetVision Ltd. (TASE: NTSN) have joined forces to provide a mobile Internet service in a single package for subscribers. The measure is aimed at Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), which is planning a similar service as part of its entry into the inland telephony market.
Cellcom has outlined a set of proposals to create a precise strategic response that will combine mobile Internet that will not require investing in VoIP. The company announced a slew of packages for both private and business subscribers, which are aimed at providing a focused response to the growing competition resulting from cellular operators becoming Internet service providers (ISPs) as well.
Cellcom is offering private subscribers a combined cellular airtime and wireline Internet deal at a fixed price. The offer is a cautious one, since the company wants to test the market response, and it is also offering other packages, such as an Internet package with 2.5 megabyte per second (Mbps) transmission speed.
Cellcom is offering a 2.5-Mbps Internet and 110 minutes of cellular airtime for NIS 99 per month, including VAT, with an 18-month commitment.
In contrast to Cellcom, Partner's strategy is to provide all telecommunications services. Cellcom does not believe in this strategy.
In response to Cellcom's move, Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) subsidiaries Pelephone Communications Ltd., which provides cellular services, and Bezeq International Ltd., which provides ISP and international calls, announced a similar joint Internet and airtime package.
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2008
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