HOT's idea with the pilot is to encourage use and traffic on its telephony network and thereby increase ARPU.
For the first time in Israel, a telephone company has launched a pilot for free cellular telephone calls in exchange for listening to advertisements. Sources inform ''Globes'' that HOT Cable Systems Media Ltd. (TASE: HOT) plans to launch just such a pilot next week. Participants will dial a designated number and then the cellular number of the recipient. They will then have to listen to a 6-10 second advertisement before being connected.
Customers will accumulate call-minutes. After six minutes, the system will automatically send the advertisements again before allowing the free call to continue. If the caller refuses accept the advertisement, he will be charged air-time as usual.
HOT's idea with the pilot is to encourage use and traffic on its telephony network and thereby increase average revenue per user (ARPU). Currently, most of HOT's telephony is subsidized because subscribers have a triple-play service of telephony, cable television, and Internet, and landline call rates are very low. Calls to cellular numbers are expensive, however, which is why the company decided to try a new model to create an incentive for making landline to cellular calls.
Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2008
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