Hot Mobile is trying to exploit Electra Consumer's acquisition of Golan Telecom to gain subscribers.
Assumptions that the Israeli cellular market would calm down following Electra Consumer Products' (TASE: ELEK) acquisition of Golan Telecom Ltd. have been proved wrong. HOT Mobile Ltd. is embarking on a new bargain campaign, in which it is offering three cellular lines for NIS 90 a month. While HOT Mobile's offer applies to all customers, it appears that the company believes that Golan Telecom has been rendered vulnerable by its acquisition and the uncertainty preceding final completion of the deal, and that the new HOT Mobile campaign is aimed at taking customers away from Golan Telecom.
Golan Telecom has been losing hundreds of subscribers daily. Figures for customer churn between the companies indicate that efforts by Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and Pelephone Communications Ltd. are focused on luring subscribers away from Golan Telecom. At the same time, even though Golan Telecom was losing many subscribers before its acquisition deal, it appears that the company has not been making efforts since then to recruit new subscribers, and is therefore still losing large numbers of net subscribers.
HOT Mobile is on the air with a NIS 49 package that includes unrestricted surfing. The offer is achieving very good results, with lively demand for this type of package. The bargain campaign is aimed at both existing and new subscribers, and customers who bring two new subscribers with them will receive a discount.
Published by Globes [online], Israel Business News - www.globes-online.com - on January 16, 2017
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