www.bethelfinance.com
The entry of HOT Telecommunication Systems Ltd. (TASE: HOT) into the Internet segment at a price of NIS 20 per month for all access speeds through subsidiary HOT.net has left the other Internet service providers (ISPs) without a response. Price comparison site Kamaze examined for "Globes" how the competitors are responding. The conclusion: prices have not come down, except for a special offer by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ).
Internet: HOT.net has the lowest rate at all access speeds, and it is doubtful whether other ISPs can match it.
The advantage of HOT.net's uniform price of NIS 20 per month for all Internet access speeds improves as access speeds increase. For example, at 100 Mbps, this price puts HOT.net far ahead of 012 Smile Telecom Ltd., which charges NIS 120, 013 NetVision Ltd., which charges NIS 130, and Bezeq International Ltd., which charges NIS 200. Only tiny ISP 018 Xfone Communications Ltd. offers an attractive price: NIS 35.
There are also differences at lower Internet speeds: Triple C Ltd. and Xfone offer 5 Mbps at NIS 25 per month, Smile offers this speed at NIS 28, and NetVision and Bezeq International offer it at NIS 40.
Triple play: Since Bezeq and its satellite TV subsidiary DBS Satellite Services (1998) Ltd. (YES) cannot offer a triple play package (TV, telephony, and Internet access), or a TV-telephone package, HOT has the edge, offering a Triple play package at NIS 330 per month, which includes all cable TV stations, telephony, and 100 Mbps Internet access.
Buying the components separately from Bezeq and YES costs at least NIS 450 per month: the starting price for YES is NIS 200 for the basic package, and climbs to NIS 279 for all channels together with YES Max Total VOD service. Bezeq's Internet access costs NIS 45 per month (for new customers receiving 2.5 Mbps), and the minimum price for telephony service is NIS 58 per month for the line, and does not include calls.
It should be noted that, so far, Minister of Communications Moshe Kahlon has rejected ISPs' requests to block HOT's new package because of what they contend is the damage they are liable to face from HOT.net's cooperation with HOT, which they claim was launched without the Ministry of Communications' permission.
Exit fines cancelled
Subscribers' commitment to ISPs is a thing of the past, so it is important to utilize competition to switch between ISPs on the basis of their offerings. Consumers have not yet grasped that the commitment is gone, as demonstrated by the continuing low churn rates at ISPs.
Liat Nahum of Kamaze says that the ease at which it is possible to leave an ISP gives subscribers the advantage. "Customers who call their ISP to terminate service in order to switch to HOT.net receive offers for Internet prices that are lower than they currently pay."
18-month price commitment
The price for customers is guaranteed for 18 months. Customers must terminate their agreement from their previous ISP on their own.
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