HOT Telecom, the cable companies' joint telephony company, today announced the launch of its telephony service. As expected, HOT Telecom will charge a fixed NIS 140 fee per month for up to 2,000 call minutes.
The fixed fee for calls within HOT Telecom's network and to Bezeq's (TASE:BZEQ) network will be reduced for subscribers of HOT Telecom's other multi-channel television and Internet services. The fee will be from NIS 90 to only NIS 20 for subscribers paying NIS 350 a month for television and Internet services.
Subscribers will also pay inter-network connection charges for calls to wireless networks. The installment charge will be NIS 99 for existing cable subscribers and NIS 150 for new subscribers. HOT Telecom's telephony network will use the 077 prefix. The company will initially focus on more profitable business customers, and later on the private market.
Despite the official inauguration, this was still a soft launch. HOT Telecom is initially providing telephony services in the Tel Aviv, Givatayim and Sharon areas. Customers participating in the networks trial will initially join the commercial network, after which HOT Telecom will contact existing subscribers. It is not yet possible to join the network voluntarily.
HOT Telecom is using VoIP (Voice over Internet Protocol) technology. The cable companies estimate the telephony network set-up cost $100 million over the next three years, shared proportionally between HOT Telecom's owners: Golden Channels - 41%; Tevel - 32%; and Matav Cable Systems Media (Nasdaq:MATV; TASE:MATV) - 27%.
Published by Globes [online] - www.globes.co.il - on November 25, 2004