مجموعة الاتصلات » cellecom

Ministry nixes Cellcom-Golan network merger

ola — Mon, 30 Mar 2015 07:20:30 +0000

The Ministry of Communications does not want to

release Golan Telecom from its investment

obligations.

The networks consolidation agreement between Cellcom Israel Ltd.(NYSE:CEL; TASE:CEL) and Golan Telecom Ltd. is in trouble, with the Ministry of Communications demanding changes in it. The Ministry sent a letter to the two companies last Thursday notifying them that the agreement did not conform to its policy document concerning consolidation of networks, and the company would therefore have to make changes in their agreement.

This is the second time that the Ministry of Communications has intervened in an agreement that runs counter to its policy. The agreement between the two companies attempted to meet the Ministry’s requirements, but the Ministry apparently did not accept the fact that the venture releases Golan Telecom from the obligations imposed on it as part of its selection in the 3G tender when it entered the market, and focuses excessively on the 4G network. The Ministry of Communications is demanding that the networks consolidation agreement between the companies prove that Golan Telecom is bearing the burden of the investments required of it for the 3G network, as well as the 4G network.

Like HOT Mobile Ltd., Golan Telecom undertook to set up a 3G network as part of winning the frequencies tender in 2011, when it entered the market. For various reasons, the companies had a great deal of difficulty in meeting the obligation to set up the network, but in general, the Ministry of Communications also realized that at the current time, this task could not be accomplished, due to the difficulty in establishing sites.

Outgoing Minister of Communications Gilad Erdan initiated the constriction and consolidation of networks, aimed at making it possible to establish only three networks in Israel, with ownership divided among the operators. In other words, Golan Telecom and Hot Mobile will have to convert the investment in 3G that they undertook into investment in 4G in the form of a joint network owned in equal shares together with the veteran operators.

In practice, the agreement that released the two new companies from their obligation to set up a 3G network is very generous to them; it enables them to substantially reduce the investment required of them, and to convert it to into a generous and broad consolidation agreement with the veteran operators.

The agreement between Hot Mobile and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) is very close to gaining approval, but it turns out that the Ministry of Communications believes that the agreement between Golan Telecom and Cellcom needs changes, because in the Ministry’s opinion, the agreement does not really convert Golan Telecom’s 3G investment into a joint 4G network, and the Ministry is therefore demanded that the agreement be revised to take this into account.

Keep in mind that the main complaint against Golan Telecom is that the company is in effect becoming a virtual operator on the Cellcom network, and that the Ministry of Communications is thereby releasing Golan Telecom from the obligations imposed on it as a full cellular operator that maintains and operates a network. The chief criticism of the Ministry is that it is allowing Golan Telecom to plow into the market without the burden of investment and setting a network, with all the resulting consequences, thereby enabling the company to sell cellular services at such low prices and imperil the veteran companies. p>Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2015

Cellcom: Hot abusing power in TV market

ola — Mon, 12 Jan 2015 07:42:46 +0000

Cellcom has told the Antitrust Authority that Hot Mobile is

selling cellular lines at a loss in retaliation for TV competition.

The response of Hot Telecommunication Systems Ltd. (TASE:HOT.B1) to the Cellcom Israel Ltd.’s (NYSE:CEL; TASE:CEL) entry into the television market has led Cellcom to file a complaint against HOT with the Antitrust Authority and the Ministry of Communications.

Sources inform “Globes” that following the bargain offered by HOT Mobile Ltd. of two cellular lines for NIS 40, plus provision of Internet (a bargain for couples), Cellcom filed a strong complaint, demanding that HOT Mobile’s bargain be halted, which it said was aimed at disrupting its entry into the television market.

Cellcom entered the television market two weeks ago, and HOT Mobile offered its bargain for couples the same day. HOT Mobile’s campaign came as a surprise, even though Cellcom had taken into account such a scenario.

In its complaint, Cellcom showed why the couples bargain was a money loser from the beginning, and its sole purpose was therefore to detract from Cellcom’s core cellular activity. Cellcom sought to demonstrate to the Antitrust Authority that HOT Mobile’s campaign was an abuse of its monopoly power in the television market.

The couples bargain price includes VAT, meaning that a rough calculation gives a price of NIS 16.90 per line, while each such line adds to the cost that HOT Mobile is paying to Partner for the use of its network and to its regular costs, and the cost of the Internet provider adds a further NIS 20 a month. It therefore emerges in any reasonable calculation that HOT Mobile is selling lines at a loss, and its sole purpose is to damage Cellcom’s cellular business and deliver a message that competition in the television market will intensify the competition in the cellular market.

Cellcom is attempting to convince the Antitrust Authority that HOT Mobile has adopted this improper policy because Cellcom dared to enter the television market and square off against the duopoly of HOT and satellite company DBS Satellite Services (1998) Ltd. (YES). Cellcom also emphasized that HOT Mobile’s bargain came on the same day that Cellcom launched its television services, showing that HOT had planned its measure in advance, and instead of lowering its television prices, had cut its prices for cellular services. This response, which includes an extensive advertising campaign, cannot be devised in a single day, and it is therefore obviously the result of planning designed to halt Cellcom in its tracks, and deliver messages already in the opening stage of competition.

One important question that the Antitrust Authority and the Ministry of Communications will have to assess is the fate of the structural separation applying to HOT when the company is using its cellular subsidiary to weaken its television competitors. Under the terms of its license, HOT Mobile is obligated to operate as a separate company, and its response indicates that it is operating as a communications group using its entire arsenal, in contravention of its license.

HOT Mobile said in response, “HOT Mobile challenged the market, and will challenge the market, with no connection to Cellcom’s measure. We regret the inconvenience caused for Cellcom by the couples campaign. Cellcom should realize that it is in a competitive market, and will operate on the same playing field as everyone else, instead of turning to the Antitrust Authority director general with baseless assertions. Cellcom’s attempt to prevent consumer competition brings us back to the days of limited competition between the veteran players, which is regrettable.”

Mon: Cellcom lifts market

ola — Tue, 12 Aug 2014 06:52:27 +0000

Cellcom rose after reporting a rise in profit on a good

day for telecoms.

The Tel Aviv Stock Exchange (TASE) rose today. The Tel Aviv 25 Index rose 0.34% to 1,387.96 points, the Tel Aviv 100 Index rose 0.41% to 1,237.86 points, and the BlueTech 50 Index rose 0.74% to 306.86 points. Turnover was NIS 882.8 million.

The TASE rose today in line with gains on European markets and at the opening on Wall Street.

In the foreign currency market, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.472/$, down 0.115% on Friday’s rate, and set the shekel-euro representative exchange rate at NIS 4.649/€, down 0.011%.

In the bond market, both long-term Shahar unlinked shekel government bonds and long term Galil CPI-linked government bonds fell. The corporate bond benchmark Tel-Bond 20 Index fell 0.04%.

In the stock market, Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) rose 1.44% after reporting a rise in profit for the second quarter despite lower revenue. It was a good day for telecom companies with Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) up 0.90%, and Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) continuing a fine run following its financials last week, up 0.15%.

Delek Group Ltd. (TASE: DLEKG) rose 1.58% for the largest rise on the Tel Aviv 25 Index and Israel Discount Bank (TASE: DSCT) rose a further 1.08%.

Almost all the shares on the Tel Aviv 25 Index rose today with the biggest decliner being Opko Health Inc. (NYSE: OPK; TASE: OPK), which fell 0.67%.

Cellcom and Golan sign network sharing agreement

ola — Tue, 27 May 2014 07:13:59 +0000

This follows Antitrust Authority approval of Partner and

Hot’s sharing agreement.

Mobile operators Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Golan Telecom Ltd. last night signed a network sharing agreement. Since its inception, Golan has used Cellcom’s nationwide network to provide its services but the new agreement sees network sharing in the full sense of the term and for all technologies: 2G, 3G, and 4G.

The significance of the agreement is that Golan Telecom will only have wireless operations and will not own antennas. In effect, from now on Golan Telecom will be a kind of MVNO virtual operator plus frequencies.

The agreement between the two operators was formulated in the wake of the publication of the Ministry of Communications’ policies and approval of the merger between Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and HOT Mobile Ltd. by the Antitrust Authority.

IDF extends Cellcom contract

ola — Thu, 15 May 2014 06:56:17 +0000

The new plan will save the IDF NIS 4 million each year.

The Israel Defense Forces (IDF) is extending its contract with Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) while achieving annual savings of NIS 4 million on the new deal. Talks were held in the past few months in which the IDF and Ministry of Defense successfully upgraded their agreement, and are moving all career officers to the new plan.

Under the agreement, two plans will be offered. This first is an unlimited mobile plan, including 3GB Internet and 200 international minutes, for NIS 46 per month. The second plan has the same terms, but includes a phone (from the phones included in the agreement between the companies), for NIS 99 per month. The agreement will take effect soon, and the contract has been extended until 2017.

The IDF said, “As planned, one year before the expiry of our agreement with Cellcom, a feasibility study was conducted for a new tender. Following intensive negotiations, led by the IDF and the Ministry of Defense with Cellcom, significant improvements were achieved in the agreement – in terms of meeting IDF personnel needs, and cost IDF costs. Consequently, it was decided to exercise the option to extend the contract until October 2017.”

Cellcom CEO Nir Sztern said, “We view the IDF’s repeated choice of Cellcom as a vote of confidence in its technological abilities and the high-level of service that the company offers the IDF and family members, and we are proud of this. We believe that the extension of the agreement will let a new generation of soldiers and their families to join the tens of thousands of IDF Cellcom subscribers, with favorable terms.”

Cellcom picks Nokia Solutions for 4G network

ola — Thu, 17 Apr 2014 07:01:41 +0000

Cellcom expects wide and high quality network

deployment by the end of the year.

Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) has selected Nokia Solutions and Networks to supply a 4G network, which also supports 4.5G LTE Advanced technology. Cellcom says that it expects to achieve a wide and high quality deployment of the network by the end of the year, but cautioned that operation of the network as well as its LTE Advanced qualities is subject to the regulator’s approvals and availability of spectrum.

Nokia Solutions (formerly Nokia Siemens Networks) supplies Cellcom’s current 3G network, and the carrier decided to sign a follow-on contract with it, instead of bringing in a second supplier. Ericsson SA (NYSE: OMX: ERIC) is Cellcom’s second supplier, providing half of its 3G network.

In the first stage of the 4G deployment, Nokia Solutions will build several hundred sites and upgrade Cellcom’s core network and switches.

Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2014

Security Agency clears Ben-Moshe to control Cellcom

ola — Tue, 01 Apr 2014 06:41:55 +0000

The transfer of Cellcom’s control permit is a condition for

the IDB debt settlement.

The Israel Security Agency has cleared IDB Holding Corp. Ltd.(TASE:IDBH) co-controlling shareholder Moti Ben-Moshe, and the Ministry of Communications has therefore sent Cellcom Israel Ltd.(NYSE:CEL; TASE:CEL) a draft for the transfer of the company control permit to IDB’s new controlling shareholders.

The transfer of Cellcom’s control permit to Ben-Moshe’s Extra Holding GmbH and Eduardo Elsztain’s Dolphin Fund Ltd. is a condition for carrying out the debt settlement in IDB.

Published by Globes [online], Israel business news - www.globes-online.com - on March 31, 2014

Cellcom 2013 profit down 46%

ola — Sun, 09 Mar 2014 08:59:38 +0000

CEO Nir Sztern: Price erosion in the cellular market will continue in the coming year.

Cellcom Israel Ltd.’s (NYSE:CEL; TASE:CEL) revenue fell 14% in the fourth quarter pf 2013, as competition in the telecommunications sector intensified. The company is not distributing a dividend for the quarter, stating in its report, “The company’s board of directors decided not to distribute a dividend for the fourth quarter of 2013, given the intensified competition and its adverse effect on the company’s results and in order to further strengthen the company’s balance sheet.”

The company, part of the IDB group, released its financials today. It made a profit of IS 102 million in the fourth quarter, 9.7% less than in the fourth quarter of 2012. Revenue totaled NIS 1.2 billion. For 2013 as a whole, the company posted a 17% decline in revenue to NIS 4.9 billion, while its profit plummeted 46%, to NIS 651 million.

In the fourth quarter, the company had cash flow of NIS 308 million from regular activities, 7% more than in the fourth quarter of 2102. Revenue from services fell 8.3% to NIS 977 million, and operating profit fell 10% to NIS 170 million. EBITDA (earnings before tax, interest, depreciation and amortization) fell 10%, to NIS 335 million.

At the end of 2013, Cellcom had 3.092 million subscribers, after losing a net 43 thousand subscribers over the year. The churn rate among mobile subscribers was 36.8%, compared with 31.5% in 2012. Average monthly revenue per user was NIS 78.5 last year, compared with NIS 87.5 the year before, representing a decline of 10.2%.

Cellcom CEO Nir Sztern said, “Again in this year of aggressive competition, Cellcom Group continues to present good financial results, which are reflected in a free cash flow (after investments) of approximately NIS 1.2 billion. The efficiency measures we implemented following the merger with Netvision led to savings at an annual run rate of approximately NIS 640 million. In 2013 alone we presented actual savings of over NIS 200 million in selling, marketing, general and administrative expenses, compared to last year.

“This year we continued with the profitability focused strategy and the expansion of our product offerings to landline services, both of which had satisfactory results, as reflected in the moderation of ARPU and revenues erosion in the last quarters.

“I expect that the competition and consequently price erosion in the cellular market will continue in the coming year. However, we will continue to focus on efficiency measures, and we expect that in the long run, a shared passive infrastructure for our network will allow significant savings in operating expenses, and a shared 4G (LTE) network will assist in reducing investments in that area, if such sharing agreements are approved.”

CFO Shlomi Fruhling added, “This year, we continued to strengthen the company’s balance sheet, made repayments of principal on our debentures in an amount of over NIS 1 billion from internal resources without raising new debt and decreased our net debt by over NIS 700 million to approximately NIS 3.8 billion.”

Published by Globes [online], Israel business news – www.globes-online.com – on March 6, 2014

Cellcom, Pelephone talks on shared 4G network progress

ola — Wed, 27 Nov 2013 07:47:05 +0000

The mobile carriers have agreed in principle on the main items

in an agreement to set up a shared 4G network.

Sources inform ”Globes” that mobile carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Pelephone Communications Ltd. have agreed in principle on the main items in an agreement to set up a shared 4G network. Although there are still open issues, the carriers will reportedly soon be able to submit an agreement to their boards of directors for approval, after which they will sign it and submit to the Antitrust Authority and the Ministry of Communications for approval.

Golan Telecom Ltd. is not currently part of these negotiations, but the door is open if it wants to become a partner in the venture, just as it has been invited to participate in the shared 4G network of Partner Communications Ltd.(Nasdaq: PTNR; TASE: PTNR) and HOT Mobile Ltd..

Cellcom and Pelephone will equally share the cost of establishing a shared network, giving the carriers substantial savings. Each carrier will own 50% of the network, but they need to agree to equally sharing the costs for hooking up to antennas. This is because Cellcom’s independent transmission network connects 90% of its sites, while Pelephone uses the fiber optic network of its parent company, Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ).

One idea mooted is to divide Israel into north and south, which each carrier providing the transmission to sites in each region. This has little significance because the parties will figure out their own offsetting mechanisms. In this context, Bezeq is establishing a new designated network for 4G carriers, which will allow carriers to independently manage data transmission between antennas and the network core.

The prior and close relations between Pelephone CEO Gil Sharon and Cellcom CEO Nir Sztern has greatly helped in moving the negotiations forward. Sztern served as Sharon’s deputy at Pelephone before his appointment as CEO of 013 NetVision Ltd. and later of Cellcom following the two companies’ merger.

Cellcom and Pelephone have decided not to seek a preruling from theAntitrust Authority, but to submit a final agreement to it for approval, in order to avoid dragging out the approval process.

Cellcom profits halved

ola — Wed, 13 Nov 2013 08:11:14 +0000

Cellcom will pay a dividend despite reporting a 58% fall in

profits and 15% fall in revenue for the third quarter of 2013.

IDB Holding Corp. Ltd. (TASE:IDBH) mobile phone unit Cellcom Israel Ltd.(NYSE:CEL; TASE:CEL) today reported that its profits were halved on lower revenue for the third quarter of 2013, but the company nevertheless will pay an NIS 85 million dividend.

Revenue fell 15.5% to NIS 1.22 billion ($346 million) from NIS 1.45 billion ($409 million) for the corresponding quarter of 2012. Service revenue fell 12% to NIS 1.01 billion for the third quarter from NIS 1.15 billion for the corresponding quarter, due to price erosion caused by increased completion, and equipment revenue fell 30% to NIS 211 million from NIS 300 million, due to lower handset sales. The drop in mobile services, ISP, international calls, and roaming services revenue was partly offset by higher hosting revenue

Net profit fell 58% to NIS 52 million ($15 million) (NIS 0.53 or $0.15 per share) for the third quarter from NIS 124 million ($35 million) for the corresponding quarter. The company attributed the drop to lower revenue and higher net financing expenses, which were partly due to a one-time NIS 7 million tax payment. Free cash flow fell 6% to NIS 389 million for the third quarter from to NIS 414 million for the corresponding quarter.

Cellcom’s churn rate rose to 8.9% in the third quarter from 8.6% in the corresponding quarter. It had 3.16 million subscribers at the end of September, after adding a net 5,000 new subscribers during the third quarter. Average revenue per user (ARPU) fell to NIS 79.60 per month during the third quarter from NIS 86.70 per month during the corresponding quarter, but Minutes of Use per subscriber (MOU) rose to 461 minutes per month from 399 minutes, mainly because of the switch to marketing plans, which include unlimited air time minutes.

“Even in this quarter of intensified competition, the company continues to present improvement in its operational results compared with the previous quarter,” said Cellcom CEO Nir Sztern. “Cellcom Israel continues to follow its strategy since the merger with Netvision and bases itself as a communications group. In the last quarter we launched a significant marketing campaign offering the group’s cellular customers free home landline telephony for one year. This is a significant milestone for the future competition in the landline market, which constitutes one of the company’s growth engines, and we believe in the regulator’s willingness to encourage real competition in this market.”