Cellcom unveils triple-play service as Israel opens telecom, Internet market

DetailsRebecca Hawkes | 18 May 2015

Israeli mobile operator Cellcom has launched a triple-play bundle of phone, Internet and television services to add potential revenue streams in what is a fiercely competitive market.

The Israeli Government opened up the wholesale telephony and Internet market on 17 May 2015, meaning that incumbent Bezeq Israel Telecom must lease its infrastructure to competitors.

Cellcom introduced its over-the-top (OTT) television service last December, providing a basic package of linear TV and subscription video-on-demand (VOD) services for NIS99 (US$25.3) a month. This has expanded with the launch of a landline phone and high speed Internet access for between NIS149 and NIS169 a month.

Cellcom claims to have attracted almost 30,000 subscribers to its OTT TV service, along with approximately 600,000 household Internet customers and over 150,000 active landline telephony customers.

"We are leveraging our existing customer base, as well as our existing sales and marketing infrastructure and we are establishing a solid foothold in the TV market," said Nir Sztern, CEO, Cellcom.

Ami Erel, chairman, Cellcom, added: "This is a significant move with the possibility of real growth from the entry of our triple-play, which has huge potential in a market dominated by the HOT/Bezeq duopoly."

Cellcom's entry into the TV sector offers the first alternative competition for 15 years to cable operator HOT and Bezeq-owned satellite platform YES, which charge NIS250 or more a month for their TV services.

The company says its triple-play offer represents a saving of some 50% on existing options.