Pelephone CEO Ilan Siegel’s first decision: closing the sub-brands

by time news

The new CEO of Pelephone, Ilan Siegel, ordered the closure of all Pelephone sub-brands – that is, customer routes based on collaborations with other companies. and yes), made a strategic decision according to which there is no justification for continuing to maintain the sub-brands, which according to him were a marketing move that was correct in the past.

Let’s recall that Pelephone advocated a sub-brand policy several years ago, and this was within the framework of the policy that stated that the company’s market share must be maintained and increased at a time when the competition in the industry was fierce, and the scope of abandonments and transitions between cellular companies was in the hundreds of thousands per year. Another goal of the sub-brands was to achieve a wide distribution, which allowed to reach more customers in different geographical locations.

Things have changed since then: Pelephone is on a growth trend in subscribers for the seventh year in a row, competition in the cellular market has calmed down a bit, and the amount of roaming has decreased significantly. Customers are no longer in a hurry to abandon a company and switch when it comes to differences of a few shekels between companies.

Hence the decision of Siegel to return and concentrate the marketing activity on Pelephone, and at the same time to change business focus and focus on the fifth generation through deepening the investment in the infrastructure, working on the network core, expanding the 5th generation deployment and focusing on increasing the number of customers in the 5th generation packages in response to the growing demand.

Over the years, Pelephone has had many collaborations with large chains, including PMOBILE with Bug, EMOBILE with Electra, Kravitz Mobile, Walla Mobile and Genie Mobile, the house brand that responded to additional collaborations and mobile stores (Max Stock, Israel Post).

The company stated that anyone who is currently under the route of one of these sub-brands is a Pelephone customer for all intents and purposes, and will continue to receive the same service from the company.

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