TASE-listed Polar Investments announced today that it had invested $1.25 million in CellTime, a new company that plans to sell pre-paid cellular air-time at retail points of sale in Israel.
Before Polar’s investment, CellTime was a joint venture between Retalix’s (Nasdaq: RTLX) and Lipman Electronic Engineering. Now, Retalix, Lipman and Polar will hold equal shares in the new company.
CellTime is targeting the $200 million market for cellular pre-pay air-time in Israel, Retalix said.
CellTime's technology enables cell phone owners to pay for air-time at the point of sale and immediately use the newly acquired air-time, with no need for a calling card. Air-time is purchased by entering the cell phone number into Retalix point of sale terminals or Lipman's NURIT credit card terminals. Crediting the customer's account for the acquired air-time is achieved through the system’s on-line connectivity to Israel’s cellular operators.
The services will be provided to over 10,000 Retalix points of sale in Israel, both in major chains and in hundreds of independent stores which are connected to StoreNext Israel, Retalix's e-marketplace for independent food retailers. Lipman will provide the service to thousands of small retail outlets which are equipped with the company's credit card terminals.
Retalix president and CEO Barry Shaked said, "Retailers and consumers will soon benefit greatly from having thousands of stores connected to on-line services such as this. CellTime is taking the initial steps in widening the variety of products and services which are available in retail chains and independent stores."
Lipman CEO Isaac Angel said the CellTime technology “has already proven itself in the pilot phase and has generated early revenue. This joint venture has strengthened the cooperation between companies and the cellular operators, who have acknowledged the value of the CellTime solution."
Polar CEO Avigdor Kelner said Polar’s Dai telecom subsidiary would be able to add a range of pre-paid products to the CellTime initiative.
Published by Globes [online] - www.globes.co.il - on 7 April, 2003