Globes 1-9-2013

Hot Mobile’s churn rate hits 85%

The churn rate at new carrier HOT Mobile Ltd. rose to 85% in August 2013, compared with 36% at rival Golan Telecom Ltd., according to data obtained by “Globes”. Hot Telecom also recruited only a quarter of the number of new subscribers recruited by its rival during the month: 2,683 to over 12,000.

August continued the trends since the beginning of the year, during which Golan Telecom has recruited more subscribers than Hot Telecom, which will have long-term consequences for the latter as a growth engine for Hot Telecommunication Systems Ltd. (TASE: HOT.B1).

Among the veteran carriers, Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) subsidiary Pelephone Communications Ltd. was able to keep its churn rate low in August, and has also been of its aggressively marketing its low-cost plan of NIS 79 a month for new subscribers. The carrier lost a net 1,400 subscribers in August.

The churn rate at Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) stayed high in August, possibly because Israel Corporation (TASE: ILCO) subscribers switched to Orange franchisee Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR).

The churn rate at Partner, which ended its aggressive marketing through subsidiary 012Mobile, rose to 6,000 subscribers in August, after almost halting subscribers’ switching to other carriers in the preceding months. .

Among the mobile virtual network operators (MVNOs), YouPhone gained a net 3,000 new subscribers in August, more than Hot Mobile. Rami Levy Communications lost a net 250 subscribers, continuing the trend of the preceding months, and Home Cellular lost a net 115 subscribers.

New MVNO 019 Taldor entered the market in August, gaining 233 subscribers, most of whom are reportedly foreign workers.

Published by Globes [online], Israel business news – www.globes-online.com – on September 1, 2013