In recent days since a deal was signed for the acquisition of Golan Telecom Ltd. by Electra Consumer Products (TASE: ELEK) the pace of subscribers abandoning the company has risen. The company lost a net of 70,000 subscribers in 2016. Given the uncertainty about prices in the market, the fact that more subscribers are leaving Golan Telecom should surprise no one.
Golan Telecom lost 200 subscribers a day in the week before the deal, but the pace picked up last week. Last Wednesday, for example, the company shed 400 subscribers, and more than 600 on Thursday.
Despite the natural uncertainty about the deal, Golan Telecom subscribers should not feel any difference in their packages or rates; they should be receiving services as normal. It is possible that the subscribers leaving the company are afraid that their prices will rise, and they want to ensure attractive packages now. Another possibility is that the competing cellular companies could be redoubling their efforts to attract Golan Telecom's customers, while taking advantage of the period of uncertainty.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 8, 2017
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