Subscribers desert Golan Telecom

Michael Golan  photo: Ariel Bliak
Michael Golan photo: Ariel Bliak

14,400 subscribers, net, left Golan last month, with the veteran companies and newcomer Telzar 019 the main gainers.

Customers appear to be voting with their feet against Golan Telecom. The mobile carrier, which has met regulatory resistance to its merger deal with Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), lost 14,400 subscribers, net, last month, but the problem is the gross figure, with 28,000 subscribers leaving in one month.

Hot Mobile, on the other hand, continues to lead the market, gaining 3,000 subscribers net - not an impressive number, and, as always, the number of subscribers leaving spoils the picture for Hot Mobile, but still, the company has maintained its advantage.

The three veteran carriers, Pelephone Communications Ltd., Cellcom, and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) seem to have benefitted from the mass exit from Golan Telecom. Each recorded subscriber gains last month, with Cellcom and Partner leading with rises of over 2,500 each in subscriber numbers, while Partner trailed, recruiting just 1,400 subscribers, net.

The most interesting phenomenon in Israel's telecommunications market is the fine work done by Telzar 019, which has recruited a very decent number of subscribers for a virtual player. In net terms, its figures were similar to those of Pelephone and Cellcom last month, and it recruited in similar numbers to Rami Levy, but had far fewer subscribers leaving. Telzar signed a hosting agreement with Partner (to use its antennas) a few months ago, and has been on a growth trend since then.

Yesterday, Golan Telecom owner Michael Golan acknowledged that these were "challenging times" for his company. He explained that the public opposed the siting of more cellular antennas, and that an agreement with Cellcom would have reduced their number, but that "for reasons that are not clear, the agreement was not approved."

Golan went on to say that after the network merger agreement was disallowed, his company decided on a sale to Cellcom. This too has been ruled out by the authorities.

Having in the past threatened that failure to approve the merger deal with Cellcom would mean the collapse of Golan Telecom and less competition in the Israeli telecommunications market, Golan's post now tells subscribers, "We wish to inform you here that we shall continue to provide you with the best service, characterized by simplicity, transparency, and competitive prices, exactly as we have done up to now with great success. We promise to ensure continuity of high quality service to all the company's customers, at all times."

Published by Globes [online], Israel business news - www.globes-online.com - on May 2, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Michael Golan  photo: Ariel Bliak
Michael Golan photo: Ariel Bliak
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