Mobile Market

There are 3 major mobile service providers in Israel: Cellcom, Pelephone and Partner (Orange) serving the population of 7 million people. It is a highly saturated and competitive market in Israel that is experiencing limited growth rates. Penetration rate stands at 107% (due to multiple mobile connections per user). As a result, service providers are looking to 3G technology and other newer mobile technology to increase their profits by attracting users to these new technologies.

Operator	Market share	Subscribers	Technology
Cellcom	35 percent	3.12 million	TDMA, GSM, EDGE and 3G
Pelephone	27 percent	2.4 million	UMTS, 3G for CDMA
Partner (Orange)	32 percent	2.8 million	GSM/GPRS/UMTS, 3G
Mirs	-	300,000	IDEN (integrated digital enhanced network)
Jawwal	-	500,000	GSM/GPRS, EDGE

Source: Pelephone, Cellcom, Partner (Orange)

Cellcom Company Profile
Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.117 million subscribers (as at June 30, 2008) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure.
The Company operates an HSPA 3.5 Generation network enabling the fastest high speed content transmission available in the world, in addition to GSM/GPRS/EDGE and TDMA networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Through its broad customer service network Cellcom Israel offers its customers technical support, account information, direct to the door parcel services, internet and fax services, dedicated centers for the hearing impaired, etc.
In April 2006 Cellcom Israel, through Cellcom Fixed Line Communications L.P., a limited partnership wholly-owned by Cellcom Israel, became the first cellular operator to be granted a special general license for the provision of landline telephone communication services in Israel, in addition to data communication services. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL).
Source: Cellcom

Pelephone Company Profile
Owners: 100%Bezeq - The Israel Telecommunication Corporation Ltd

Management

Gil Sharon– CEO

General Information

Subscribers: Approximately 2.4 million
Employees: Approximately 4,200
Points of Sale: 100
Service and Sales Centers: 39
Revenue: Approximately N.I.S 4.478 billion (2006)
Source: Pelephone

Partner Company Profile
Partner Communications Company Ltd. ("Partner" or "the Company") is a leading cellular operator in Israel. Operating under the orange™ brand, Partner provides a broad range of high-standard services using the most advanced technologies (GSM/GPRS/UMTS/HSDPA) to more than 2.8 million customers, representing a market share of approximately 32%.
Partner launched its 3G services in December 2004 and the number of 3G subscribers reached approximately 834,000 at end Q2 2008. Partner is also already implementing the advanced technology of HSDPA (3.5G), which allows download speeds of up to 7.2 MB per second. The 3G services are provided in over 80% of urban centers, and are designed for both data card and handset users. Leading the 3.5G market in Israel pushes forward Partner's content business, which serves as an important growth driver for the Company, reaching quarterly revenues of approximately NIS 200 million. Partner will continue to invest in introducing new content and media applications and enrich its content offering in order to maintain its leadership in this strategic area.
Also holding licenses for cellular, fixed telephony, transmission and ISP services, Partner is continuously expanding its service portfolio into additional telecom areas and the Company is currently actively working on establishing its non-cellular platform, which should be introduced at the beginning of 2009. The Company’s ADSs are quoted on the NASDAQ Global Select Market™ and its shares are traded on the Tel Aviv Stock Exchange (NASDAQ, TASE: PTNR).
Source: Partner

Ericsson to Supply Mobile TV Solution to Cellcom
In January 2008, Ericsson entered into an agreement with Cellcom to provide an end-to-end mobile TV and video solution for Cellcom subscribers to experience a new level of TV technology with VOD (video-on-demand) content and live TV channels. This is an example of telcos turning to other sources of new technology to improve their business and customer usage of their services.
Source: Ericsson Press Release