Sources inform ''Globes'' that Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) subsidiary 012 Smile Telecom Ltd. will launch a new brand "Mobile 012" with unlimited calls and SMS, unlimited calls to select international landline destinations, and internet access. There will reportedly be two plans: one for NIS 88 per month, and the second for NIS 98 per month, with the difference being in internet access and international calls destinations.
Partner's move comes one month after the launch of new carriers HOT Mobile Ltd. and Golan Telecom Ltd. Partner is the first of the veteran mobile carriers to respond to the challenge.
Mobile 012 will reportedly offer a better plan than Golan Telecom and HOT Mobile's all-inclusive NIS 99 per month plans, and HOT Mobile also offers a NIS 89 monthly plan without international calls. Partner also meets the need of subscribers who only want mobile services (SIM only), and have independent internet, similar to Golan Telecom.
Smile has an advantage is that it an established international calls and internet service provider brand with a customer base to whom it can offer mobile services as well. It wants to separate the new operations from Partner by creating a discount brand with a strong presence.
All the mobile carriers have built private labels, but none have launched them. Pelephone Communications Ltd. wanted to launch its "Me" brand and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) wanted to launch its "Basic" label, but neither carrier has done so. The launch of rival Mobile 012 may cause its rivals to go ahead with their own launches.
Smile's move is dramatic, since until now, all of the three veteran mobile carriers worked hard not to match the prices of the new carriers, and kept their prices for unlimited plans at around NIS 120 per month, in order to maintain differentiation.
Mobile market competition appears to be heating up, and customers are demanding NIS 99 monthly plans. Partner's new brand may meet this demand.
Partner said in response, "Smile confirms that it intends to launch the new Mobile 012 label. The monthly plan will be announced soon."
Partner's share price fell 0.7% in early trading on Nasdaq today to $4.53, giving a market cap of $705 million, after falling 1.4% on the TASE today to NIS 17.59.
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2012
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