Profile: Cellcom Israel Ltd (CEL.N)
7 Mar 2014
Cellcom Israel Ltd. (Cellcom), incorporated in 1994, is a provider of cellular communications services in Israel. Cellcom offers a range of cellular services through its cellular networks. These services include basic and advanced cellular telephone services, text and multimedia messaging services and advanced cellular content and data services. As of December 31, 2010, the Company also offers international roaming services in 179 countries. It offers its subscribers a selection of handsets from various global manufacturers, as well as extended warranty and repair and replacement services. It also offers landline transmission and data services to business customers and telecommunications operators and it offers landline telephony services. As of December 31, 2010, the Company provided cellular communications services to approximately 3.394 million subscribers, including basic cellular telephony services and value-added services, as well as handset sales. In August 2011, the Company acquired Netvision Ltd.
Cellcom offers its cellular subscribers a range of calling plans, which are designed to suite their particular needs. The Company adapts its calling plans for the different types of usage, personal or business, and the number of users associated with the subscriber. It offers two methods of payment: pre-paid and post-paid. Pre-paid services are offered to subscribers who pay for its services prior to obtaining them, usually by purchasing the Talkman pre-paid cards or virtual Talkman cards. Post-paid services are offered to subscribers who are willing to pay for its services through banking and credit arrangements, such as credit cards and direct debits.
Basic Cellular Telephony Services
Cellcom’s principal service is basic cellular telephony. In addition, the Company offers other services with enhancements and additional features to its basic cellular telephony service. These services include voice mail, cellular fax, call waiting, call forwarding, caller identification, conference calling, Talk 2 (two handsets sharing the same number, thus allowing its subscribers to own both a handset and a car phone), additional number service (enabling its subscribers to add a second phone number to their handset) and collect call service.
The Company offers both an outbound roaming service to the subscribers when traveling outside of Israel and an inbound roaming to visitors to Israel who can roam into its network. As of December 31, 2010, it had commercial roaming relationships with 577 operators in 179 countries. Most of the Company’s global system for mobile communications (GSM) subscribers who use these roaming services abroad can use their own handset and others can borrow or rent, depending upon the period of time, a suitable handset from it. As of December 31, 2010, the Company had third-generation (3G) roaming arrangements with 216 of these operators, enabling its 3G roamers to participate in video calls and use high-speed data, video and audio content services in 93 countries.
Cellcom offers a number of value-added services. Some of the value-added services offered by the Company are available only to subscribers who have supporting handset models and some are offered only to business subscribers. The principal advanced value-added services offered by the Company, include Cellcom Media, short message services (SMS) and multimedia messaging services (MMS), access to third party application providers, video calls, zone services, location-based services, other information and content services, data services and financial Services.
Cellcom Media mobile content is focused on providing a downloadable content consisting of music, games, on-net-reality programs, drama series, video games and other content services through the Company’s cellular portal and Internet site, and also on promoting Israeli content and the use of the handset as a mobile media center. The Company offers SMS and MMS services, which enable subscribers to send and receive text (SMS), photos, multimedia and animation (MMS) messages. In addition applications enable its subscribers to send SMS messages to a large number of handsets simultaneously.
Cellcom provides its subscribers with access to certain services offered by third party application providers. These services include a service that allows subscribers to receive notification of roadway speed detectors in their vicinity; a service (using a cellular modem) that provides a system for the management of vehicle fleets and a service that enables subscribers to remotely manage and operate time clocks and various controllers for industrial, agricultural and commercial purposes. Video calls service enables the Company’s 3G users, using 3G handsets, to communicate with each other through video applications.
The Company’s zone service provides discounts on airtime for calls initiated from a specific location, such as a university campus. Its network identifies the location, from which the call is initiated in order to apply the discounted rate on the call. The Company offers a number of location-based services. Cellcom Navigator is a service provided through a third party that enables its subscribers to receive real-time travel directions and visual data regarding their position using global positioning system (GPS), technology. Cellcom Radar is a service that enables its subscribers to locate services, such as restaurants, shops and entertainment centers in the proximity of their location. Cellcom Taxi enables its subscribers to call for a taxi located nearby.
Cellcom provides other information and content services, some of which are provided directly by it and some by third party content providers. The Company provides voice-based information services through interactive voice response platforms (IVR), including interactive information services and radio and television programs. It also provides text-based information services and interactive information services, including news headlines, sports results, and traffic and weather reports. Some of these services are provided through its MMS or video-based technologies, and are offered to subscribers with supporting handsets. The Company offers its subscribers a range of channels to facilitate their access to data services, including handsets (in supporting models), cellular modems, laptops, tablets and cellular routers. It also offers Internet surfing packages for various speed rates. The cellular router enables the use of landline communication devices, such as phones, faxes and computers, over the cellular network, in addition to its cellular communications services, thus providing a communication solution for private and small businesses customers.
In October 2010, the Company began providing an Internet based payment service enabling the purchase of digital content through the Internet and cellular handset branded Qpay Services. In December 2010, the Company launched its money remittance services from Israel to other countries, through Citibank N.A.'s platform and worldwide distribution channels. Its financial services are available to cellular customers of all operators in Israel.
Cellcom sells a range of handsets designed to meet individual preferences. The Company offers a range of handsets from brands, such as Apple, LG, Motorola, Nokia, Samsung, Sony-Ericsson and RIM. The handset models that the Company sells offers Hebrew language displays in addition to English, Arabic and Russian. It offers its subscribers an extended handset warranty, as well as repair and replacement services for handsets, in approximately 80 locations, including through its wholly owned dealer. It also sells modems, routers, tablets and laptops to promote its data services.
Cellcom provides landline telephony, transmission and data services, using its 1,570 kilometers of inland fiber-optic infrastructure and complementary microwave links. It has license to offer landline telephone service. Through the Company’s NGN system, it provides advanced, voice and data services, to selected business customers in Israel.
The Company competes with Partner, Pelephone, MIRS Motorola Communications Ltd., Bezeq International, Apple, Google and Nokia.
Cellcom Israel Ltd
10 Hagavish St.,
P.O. Box 4060