HOT Telecommunication Systems Ltd. (TASE: HOT) mobile carrier unit HOT Mobile Ltd. is expected to reach a 7% market share by 2013 and cross the 500,000 subscribers threshold. If the carrier reaches this target then it will be able to get back a substantial portion of the guarantee for its license that it deposited with the Ministry of Communications, sources at HOT believe.
The company was compelled to deposit a NIS 700,000 license fee as part of its winning bid in the tender on 2011. In recent months, HOT has successfully attracted an impressive number of subscribers (estimates are 400,000) and the company is confident that it can draw the required number of customers within a year.
However, HOT Mobile is also required to reach antenna coverage targets as part of the tender so that it is not certain that it will receive the full amount of the deposit that it paid.
A certain number of HOT Mobile subscribers were previously Mirs customers, which was acquired by HOT prior to its tender winning bid but most customers joined after leaving other mobile carriers.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2012
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