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Profile: Cellcom Israel Ltd (CEL.N)

CEL.N on New York Stock Exchange

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Cellcom Israel Ltd., incorporated on January 31, 1994, is engaged in the provision of cellular telephone services. The Company offers fixed-line services. The Company operates in two segments: Cellular and Fixed-line. The cellular segment includes the cellular communications services, end user cellular equipment and supplemental services. The fixed-line segment includes landline and long distance telephony services, Internet infrastructure and connectivity services, television services, end user fixed-line equipment and supplemental services. The Company provides a range of cellular services through its second generation (2G), third generation (3G) and fourth generation (4G) network. The Company's services include basic cellular telephony services, text and multimedia messaging, advanced cellular content and data services, and other value-added services. It also offers international roaming services, a range of handsets from various manufacturers, and repair services on most handsets it offers.

Cellular Segment

The Company offers its cellular subscribers a range of usage and sector pricing plans and bundles combining cellular services with other communications services its group offers, such as international long distance (ILD) services. It offers two methods of payment: pre-paid and postpaid. The prepaid services are offered to subscribers purchasing its Talkman prepaid cards or virtual Talkman cards. Its unlimited packages price plans include cellular telephony and data transfer, upload and download (in supporting handsets). In addition, it also offers various other services, such as voice mail, cellular fax, call waiting, call forwarding, caller identification and conference calling. It also offers various Internet data packages.

The Company offers both an outbound roaming service to its subscribers when traveling outside of Israel and an inbound roaming service to visitors to Israel, allowing them to roam on its network. As of December 31, 2016, it had commercial roaming relationships with 551 operators in 180 countries. In addition, as of December 31, 2016, it had 3G roaming arrangements with 368 of these operators in 114 countries (some of them for 4G as well), enabling its 3G and 4G roamers to use data services in the respective countries and visiting roamers in Israel of these operators to use its 3G and 4G services, respectively.

The Company offers value-added services, such as short message service (SMS) and multimedia messaging service (MMS); cloud backup and content services, such as Cellcom Volume, its music application, and Cellcom tv application. SMS is included in its unlimited packages. To its business subscribers, it also offer multi-SMS, mobile-to-mobile (M2M), and Double Net services, which allow combined usage of cellular and landline networks. The Company sells a range of handsets, including various communications end user equipment, such as tablets. The Company offers a range of installment plans for handsets and discounts for short-term installment plans. It offers handsets from brands, such as Apple, LG, Samsung and Sony. The handset models it sells offer Hebrew language displays in addition to English, Arabic and Russian. It also provides cellular services to subscribers with handsets that were not purchased from the Company. It also sells modems and tablets with its data services. In addition, it also sells smart watches.

As of December 31, 2016, the Company's 4G Long Term Evolution (LTE) technology offered data throughput of up to 112 megabits per second (Mbps) on the downlink path and up to 37 Mbps on the uplink path (voice services are provided through its 3G network). Its 3G Universal Mobile Telecommunications System (UMTS)/high-speed packet data access (HSPA+), or technology, offered interactive multimedia capabilities with data rates of up to 42 Mbps on the downlink path and up to five Mbps on the uplink path, as of December 31, 2016. This network, considered to be a 3.9 technology, uses the same core as its Global System for Mobile Communications (GSM)/ General Packet Radio Service (GPRS)/ Enhanced Data-rates for Global Evolution (EDGE) network. Its UMTS/HSPA+ network supports various types of services that require higher throughput and lower delay, such as video conferencing, and provides an adequate fallback for its LTE network by means of various features and network load sharing. Its 2G GSM/GPRS/EDGE 1800MHz network allows for voice calls, data transmission and multimedia services. Its GSM/GPRS/EDGE technology is considered to be a 2.75 generation (G) technology.

Fixed line Segment

The Company's fixed line services include its Internet infrastructure (based on the landline wholesale market) and Internet Service provider (ISP) services, over-the-top (OTT) television services, International Long Distance (ILD) services and landline telephony services. It also offered landline transmission and data services to selected business customers and telecommunications operators, using its approximately 1,800 kilometers of inland fiber-optic infrastructure and complementary microwave links, and Internet protocol (IP) switchboard services. It is engaged in the operation and management of business telecommunications systems. Its additional services include cloud services and data protection products solutions based on products and services offered by the Company and by third-party vendors.

The Company is a provider of Internet connectivity services. It provides end-to-end Internet service (infrastructure and connectivity) using Bezeq's infrastructure. It sells Internet infrastructure services bundled with Internet connectivity, as well as with its other services. In addition, the Company offers its Internet subscribers value-added services, such as data protection services to its private subscribers, and connectivity integration solutions and global communications solutions to its business customers, including firewalls, anti-virus and anti-spam software, overseas Internet connectivity services and server hosting services. In addition, it provides ISP services that offer the ability to filter the content viewed by the Internet users. Its Video on Demand (VoD) catalogue and linear channels offer international and local content from top content suppliers.

In the ILD market, the Company is engaged in the provision of outgoing and incoming telephone calls with worldwide coverage. It provides these services to postpaid customers, but also to prepaid customers mainly through the sale of calling cards. It also provides Hubbing services to non-Israeli international operators. Hubbing services are bridging services between two non-Israeli international operators. It also offers voice and data landline services to selected business customers. It also offers basic landline telephony services to private customers by Voice over Broadband (VOB) technology.

The Company competes with B Communications Ltd., Hot, S.B. Israel Telecom Ltd., Golan, Rami Levy Hashikma Communications Marketing Ltd., Telzar, Home Cellular Ltd, Azi Communications Ltd., Cellact Ltd. and Xfone Communications Ltd.

Company Address

Cellcom Israel Ltd

10 Hagavish St.,
P.O. Box 4060
NETANYA     4250708
P: +97252.9990052
F: +9729.8607986

Company Web Links