Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) has announced the launch of its triple-plan, which includes 40 Mbps Internet infrastructure and ISP services, TV, and a landline for NIS 149 per month. Phone calls will be unlimited to landlines and mobile phones in Israel for the first year. After one year, there will be an additional charge of NIS 20. Earlier this year Cellcom launched TV services for NIS 99 per month.
Cellcom claims that its package, which it will begin selling in the coming weeks, will save families NIS 3,500 each year. For comparison, Hot's triple-package cost NIS 340 per month.
The company has announced that in the coming months, dozens of popular channels will be added to its television service, in the news, lifestyle, drama, leisure, and reality genres. This is in addition to the existing video-on-demand (VOD) service included in the package.
Cellcom chairman Ami Arel said at a press conference today that the company is dealing with the drop in the mobile telephony market "very well," and that, "in recent quarters, we have had the best performance, as the biggest company." Arel said that Cellcom already has 30,000 television subscribers.
Arel added: "It's impossible to really lead a company when all you can say is that its defensive strategy is working. In the long term, a company that wants to survive needs a policy of offense, and growth, and creation of growth engines in all operational areas - and that is what we are doing here. The triple will accompany us in the coming years. This process now positions us for potential new growth.
"We look today at Bezeq and Hot; in their world, they are alone. As is the way with monopolies, they also charge exorbitant rates. For this reason, in the realm of triple plans, the prices are high. It's a market segment with a lot of excess fat. There are many billions that can be taken from them. It's clear to us that the competition will take time, and will demand resources, but we have the resources with which to compete. The competition will not be easy, but we are determined to compete."
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2015
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