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Profile: Cellcom Israel Ltd (CEL.N)

CEL.N on New York Stock Exchange

17 Feb 2017
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Cellcom Israel Ltd., incorporated on January 31, 1994, is a provider of cellular communications services. The Company offers a range of cellular services through its second-generation (2G), third-generation (3G) and fourth-generation (4G) cellular networks. These services include basic and cellular telephone services, text and multimedia messaging services, and cellular content and data services. The Company also offers international roaming services in approximately 180 countries. The Company offers its subscribers a selection of handsets from various manufacturers, as well as repair services on most handsets it offers. It also offers landline transmission and data services to business customers and telecommunications operators, as well as Over the Top (OTT) Television services. Through its subsidiary, Netvision, the Company offers Internet infrastructure services through the landline wholesale market. It also offers Internet connectivity services (ISP), international calling services (ILD), landline telephony (VOB) and teleconferencing services. Additional services include cloud services and data protection products solutions based on products and services offered by the Company and by third-party vendors.

Cellular Services and Products

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 ISP, landline, ILD and OTT television services for home and Internet Protocol (IP) switchboard, ISP, landline and ILD services for the office. It offers two methods of payment: pre-paid and post-paid. Pre-paid services are offered to subscribers paying for the Company's services prior to obtaining them, usually by purchasing its Talkman pre-paid cards or virtual Talkman cards. Post-paid services are offered to subscribers willing to pay for the Company's services through banking and credit arrangements, such as credit cards and direct debits. The Company provides cellular communications services to approximately 2.84 million subscribers, including basic cellular telephony services, text and multimedia messaging, data and other services, as well as handset sales.

The Company's principal service is basic cellular telephony and data transfer, upload and download (in supporting handsets). Both are included in its Unlimited Packages. In addition, the Company offers many other services with enhancements and additional features to its basic cellular telephony service, including voice mail, cellular fax, call waiting, call forwarding, caller identification and conference calling. The Company provides its customers with a range of Internet surfing packages. 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. The Company has commercial roaming relationships with over 550 operators in approximately 180 countries. In addition, the Company has 3G roaming arrangements with over 350 of these operators, in approximately 110 countries, 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 also offers many value-added services. The value-added services offered by the Company include short message services (SMS) and multimedia and animation (MMS), cloud backup content services, such as music downloads and Cellcom television application. SMS is included in its unlimited packages. The Company offers services only to subscribers who have supporting handset models and some are offered only to business subscribers. The Company also offers multi SMS, machine to machine (M2M), work force management and vehicles management applications to its business subscribers.


The Company sells a selection of handsets. The Company offers a range of installment plans for handsets and discounts for short term installment plans, however in most cases, handsets are to be paid in approximately 40 monthly installments. It offers a range of handsets from brands, such as Apple, LG, Nokia, Samsung, Sony, HTC, ZTE and Alcatel. The handset models the Company sells offer Hebrew language displays in addition to English, Arabic and Russian (in most of the models). The Company also provides cellular services to subscribers who do not purchase their handsets from the Company, provided that the handset model complies with the standards set by the Ministry of Communications. The Company offers its subscribers repair services for most handsets, in approximately 30 locations, including through its dealer, as well as by dispatch service. The Company also sells modems, tablets and laptops to promote its data services. In addition, it sells added value products to its customers, such as smart watches.

Landline services

The Company provides landline telephony, transmission and data services, using its approximately 1,780 kilometers of inland fiber-optic infrastructure and complementary microwave links. The Company offers transmission and data services, landline telephone service, and voice and data landline services to business customers. In addition, Netvision also offers landline services to both private and business customers, focusing on the private sector.

The Company also offers OTT television services, branded Cellcom television to private customers and using Netvision's systems. Cellcom television is a hybrid OTT-DTT television service provided to the Israeli market. The service includes a set-top box that enables linear channels, including based on the Israeli Digital terrestrial television (DTT) broadcasting, Video on Demand library subscription (SVoD) that can be also accessed by smartphones and tablets (television anywhere), access to Internet video content from selected Internet sites, music streaming service and additional advanced features, such as personal video recorder, VoD playlist channels and connection to social networks.

Network and Technology

The Company's 4G Long Term Evolution (LTE) technology offers data throughput of approximately 110 megabits per second (Mbps) on the downlink path and over 40 Mbps on the uplink path (voice services are provided through its 3G network). Its 3G high-speed packet data access, technology, offers interactive multimedia capabilities with data rates of approximately 40 Mbps on the downlink path and over five Mbps on the uplink path. The Company's 2G network allows for voice calls, data transmission and multimedia services.

The Company competes with S.B. Israel Telecom Ltd., Scailex, Bezeq, Hot Mobile, Golan, Rami Levy Hashikma Communications Marketing Ltd., Home Cellular Ltd., Xfone Communications Ltd., Telzar International Communications Services Ltd., Cellact Communications Ltd. and Marathon 018 Ltd.

Company Address

Cellcom Israel Ltd

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

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