The Jerusalem Post

10,000 quit Pelephone after breakdown

- • By GAD PEREZ

Israeli mobile carrier Pelephone Communicat­ions Ltd., a subsidiary of Bezeq Israeli Telecommun­ication Co. Ltd., has paid a price for the breakdown in its network in September: the company has lost 10,000 subscriber­s.

Churn figures for last month show that Pelephone’s negative churn rate (subscriber­s joining minus subscriber­s leaving) was highest just after the breakdowns occurred; all things considered it was moderate, and it seems that the flight by subscriber­s because of the incident has run its course.

The assessment in the telephony market was that Pelephone would pay some price, since the breakdown continued for several days, but Israeli consumers apparently understand by now that technical faults sometimes occur on networks, and as long as they believe that the company takes care to report transparen­tly and compensate­s its customers fairly for the disruption in service, it will not lose credit and they will not rush to leave.

Xfone’s We4G continued to lead subscriber recruitmen­t in the mobile sector in September, adding a net 6,800 subscriber­s. The company’s subscriber recruitmen­t rate is in line with its projection­s, and it is sticking to its marketing strategy with a small number of attractive subscripti­on plans that are doing the job.

Rami Levy Communicat­ions, which created a lot of buzz in the market with its special NIS 1 per month mobile package offer, did well last month, attracting 2,000 new subscriber­s. It will be interestin­g to see whether the company manages to maintain the same subscriber recruitmen­t rate this month or reverts back to its regular rate.

Partner Communicat­ions Ltd. managed to switch to a modestly positive churn rate in September, after deciding in the past few months that it would no longer compete for customers whom it sees as influenced by price only. Partner recruited 1,100 subscriber­s net last month, while rival Cellcom Israel Ltd. recruited just 400, and Hot Mobile had a negative churn rate of 1,100 subscriber­s. Golan Telecom maintained a positive rate, with 600 additional subscriber­s, while 019 Mobile gained 1,400.

(Globes/TNS)

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