Update: Israeli Cellular Number Mobility Sets Sail
Written by: Aaron Katsman | December 2, 2007
Aaron Katsman
www.IsraelNewsletter.com
The new law enacted by the Israeli Ministry of Communication enabling consumers to switch cellphonecarriers while keeping their existing phone number has gone into effect. Reports are that only a few hundred consumers have actually switched carriers. Part of the problem is that most consumers don’t even know that there is such a law.
In a very unofficial poll that I took both on the street and in my office, about 75% of the respondents didn’t even know that this change was happening. It’s ironic that a reform that is intended to benefit consumers, hasn’t even been brought to their attention. Oh the wonders of government! Even when they try and do something beneficial, they screw it up.
This lack of customer awareness may actually be quite beneficial for both Partner(PTNR) and Cellcom(CEL). Both companies were expected to increase marketing costs substantially in order to both attract new, and keep old customers. The fact that nothing is going on will help them keep their costs in check.
Check out Zack Miller’s analysis of the Israeli cellular industry.
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Disclosure: Author has no positions in any other stock mentioned as of 12/02/07.
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Aaron Katsman is the lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
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