Sources inform “Globes” that Pele-Phone Communications Ltd. has sold 2,500 Push-To-Talk (PTT), walkie-talkie type, handsets in the two months since it launched the service. Pele-Phone markets the device only to small and medium-sized business customers. Considering the fact that the technology is new, the pace of adoption has been quite rapid.
Pele-Phone VP Gil Sharon said half the customers subscribing to the new service had come from MIRS Communications, which provides PTT services. He added that use of the PTT service appeared high at this stage, but that it was premature to reach any conclusions.
Pele-Phone launched its PTT service six months later than planned. The service enables the user to speak to another person or group of people at the press of a button, using VoIP technology over data networks. The service is part of Pele-Phone's strategy to expand its basket of products for business customers. The company initially turned to the business sector without an advertising campaign. Its approach is the opposite of Cellcom's, which launched its own PTT service ten months ago, using Nokia (NYSE; LSE: HEX:NOK) technology, but for the private sector, and with an extensive advertising campaign.
Pele-Phone chose Motorola's (NYSE:MOT) technology, over Pele-Phone's CDMA-1x network, after conducting internal tests with two other companies. Pele-Phone is marketing Motorola's v65 handset, and will later market an LG Electronics (KSE:66570) handset.
In July 2004, the Ministry of Communications opened the PTT market to competition against MIRS, previously the sole provider of this service. In order to protect MIRS, the ministry limited the number of customers the other wireless operators could contact. At this stage, the PTT has not taken off. Cellcom has not been successful, and Partner Communications (Nasdaq: PTNR; TASE: PTNR; LSE: PCCD) has not even entered it, because of the low technical quality of the service.
Cellcom was the first company in the world to launch a data network-based PTT service, and it was expected that adoption would be slow. The company has sold 10,000 PTT handsets to date.
Published by Globes [online], Israel business news - www.globes.co.il - on April 20, 2005