Golan Telecom, controlled by Michael Golan and his partners, is going for the soft underbelly of the veteran carriers and is starting to attack the enterprise market. As reported in "Globes", the enterprise market has become the weak point of the veteran carriers because prices in the personal user market have fallen to such low levels that the great fear is that medium-size and large businesses will demand that existing agreements should be reopened and that prices should be lowered to match those levels.
Golan has identified the weakness, and today it is offering enterprise customers as price of NIS 25 monthly per line (excluding VAT) that includes international calls and 6 giga data. The company says that after reaching 12% of the private user market, it is entering the enterprise sector and is offering the most worthwhile package on the market with the most attractive enterprise tariff. In addition to the price per line, Golan will charge a fixed monthly amount of NIS 250 covering 500 lines. An enterprise with, say, 1,000 lines will be able to open two accounts, paying NIS 250 monthly for each.
In response to Golan Telecom's move, the share prices of the mobile carriers are plunging on the Tel Aviv Stock Exchange. Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) is currently down 6.2%, and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) 7.21%. Cellcom parent company Discount Investment Corporation (TASE: DISI) is down nearly 9%.
The package consists of unlimited call sin Israel, SMS, MMS, 6 giga data in Israel and overseas, 4G surfing in Israel up to 20 giga, 55 overseas call destinations (including mobile calls to the US and Canada), 100 call minutes to Jordan and the Palestinian Authority, unlimited calls from overseas to Israel, unlimited SMS from overseas to Israel, and unlimited call and SMS reception overseas.
Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2015
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