Partner has bid to acquire smaller telco Xfone. This move follows a rival Golan Telecom – now owned by Cellcom – bidding for Xfone earlier this month. Whichever telco wins must also cover Xfone’s debt owed to creditors, which stands at circa US$18.6 million.

The move comes soon after Cellcom’s acquisition of Golan, which has improved its market share. To sustain its market position, Partner is also pursuing the inorganic growth strategy in the segmented and competitive Israeli mobile market.

As can be seen below, in 2020, Cellcom led the mobile subscription market with a 35.9% share of total mobile subscriptions, followed by Partner (27.3%), Pelephone (22.2%), and Hot Mobile (12.4%).

 

We expect Cellcom to maintain its leadership supported by its focus on deploying 5G services and the leveraging benefits of acquiring Golan Telecom, such as its increased subscriber base.