Everyone Is Calling

Israelis are buying cellular phones in unprecedented numbers.

E

Aircraft Industries
— found the poten-
tial of the Israeli
market strong
enough to invest
$300 million in its
network infrastruc-
ture, market pres-
ence and customer
services.
"Israel is a new
geographic area for
us. We are very ex-
cited about the
prospects for this in-
vestment," com-
mented BellSouth
president Charles
Coe.
By 1996, the per-
centage of cellular
telephone users in
Israel will be among
the highest in the
world. Already you
cannot miss people
walking down the
street, sitting in
cafes, or stuck in
traffic talking on
their cellular
phones.
Why is the cellu-
lar phone so popular
with Israelis? Many
cellular phone users
and non-users alike gave the
same answer. It's Israel's most
affordable status symbol.
Another reason lies deeper in
the roots of Israeli culture. In the
army, constant communication
is the top priority. Soldiers are
trained to let people know where
they are at all times. The cellu-
lar phone obsession is seen by
some as a psychological reper-
cussion from the mandatory mil-
itary service which shapes Israeli
society.

In the army, constant
communication is
the top priority.

Cellcom's new cellular network
is expected to shape up Israel's
economy in two ways:
By providing jobs for the peo-
ple employed in building the in-
frastructure and operating the
network, and improving the effi-
ciency of many sectors of the
economy with the introduction of
improved, low-cost communica-
tion.
An efficient cellular telephone

—

Si EQUALS 2.9630MS (shekels) - Close Price 44195—

Inflation Prediction: 9.5 Percent

MIRIAM KREININ SPECIAL TO THE JEWISH NEWS

arlier this year, three Is-
raeli soldiers caused a na-
tionwide scandal during a
night of guard duty in the
Golan. Looking for something to
relieve their boredom and their
hunger, they pulled out a cellu-
lar phone and ordered a pizza.
The soldiers were caught and
reprimanded and a new rule was
passed in the Israeli Defense
Forces forbidding soldiers to
bring cellular phones to their
bases.
Israel, already among the top
10 countries in Europe in cellu-
lar telephone users per capita, re-
cently entered a new era in
communication.
The Cellcom Israel consortium,
which won the tender for Israel's
new cellular phone network, be-
gan operations Dec. 27. Since
then, there has been a record de-
mand for cellular phones in Is-
rael.
"With the completion of the
first stage of the company's mar-
keting department, the pace of
sales of cellular telephones was
unprecedented in the interna-
tional business community," said
Oren Most, vice president of mar-
keting and sales at Cellcom.
"In less than three weeks after
the company began operations,
more than 10,000 customers had
joined the network," Mr. Most
said.
Long lines and crowding at the
first four Cellcom branches show
that Israelis have been won over
by Cellcom's superior technology
and prices.
Cellcom's business strategy
consists of placing the cellular
telephone within everyone's
reach by offering its services at
low prices.
Benefits include free connec-
tion to the network, no charge for
incoming calls, free monthly sub-
scription fees for the first two
years and an air-time rate of 8.5
agurot (3 cents) per minute.
Cellcom's technology is based
on the new TDIVIA (Time Division
Multiple Access) digital trans-
mission method.
There is a dearth in the supply
oft' DMA-based cellular phones,
but Cellcom's team of partners,
most notably BellSouth of the
United States, have enough
leverage with the manufacturers
to satisfy the demand in Israel.
Cellcom and its four partners
— BellSouth, the Safra Group of
Brazil, the IDB Group and Israel

Specially co m piled by Steve Stein frynu 711,---Je?-usalem Pose

Inflation in Israel is expected
to reach an annual rate of 9.5
percent this year, well below
the Bank of Israel and rrrea-

.9, target rate of 11 percent,
according to the Bank Hapoal
in). economic department's most
recent review of the market.

Deze ~ , eddies dye Decer

;*10ft:

Israeli firm Bezek has joined
Bezek
director-general
an international consortium Yitzhak l'craul sigiled the agree--
that will compete for an inter- merit with Hiroachal Futuri s-
national tender the largest tic Corn. Ltd., Kotak Mahindra
of its k.ind in the world — for and KJFS in India, Shinawa
the development of telecom- tra in Thailand and P1311,,
munications infrastructure in owned by the Australian news
paper magnate Cary Pecker.

Israel Canada Dee On Horizon

Israel and Canada are aiming
to have a free- trade agreement
in place by the beginning of
next year, the Israel Indust*,
and Trade Ministry reported.
The sides concluded the sec-

and round of talks last month.

At that thne, they agreed on
most of the treaty's principles,

which will lead to an hnmedi-
ate mutual reduction in duties
on industrial goods.

El Al Sale Grounded For 6 Months

network could contribute to a ge-
ographic spread of the population
and enhance economic activities
in outlying areas.
Through the network, Cell-
corn's owners plan to speed up the
economic development of the
Middle East region, exporting
know-how accumulated in Israel.
"This will strengthen Israel's
standing in the field of interna-
tional business and communica-
tion for the benefit of the Israeli
economy," Mr. Most said.
But with every great innova-
tion, there are drawbacks. Is-
raelis have become obsessed with
this new toy.
Cellular phone usage can be
blamed for many of Israel's car
accidents. And new rules will
have to be made banning cellu-
lar phones from certain places,
such as movie theaters.
It is almost impossible to sit
through a movie in Israel with-
out hearing someone's phone
ring.
Everyone turns to hear if it's a
national emergency. No, just an-
other Israeli telling someone
where he is and what the movie
is about. 0

The Israel Interministerial
According to El Al director-
Committee on Privati7ation de- general Raft Harley and the
cided to delay the sale of El Al newly appointed elle irmari of
Israel Airlines, set for May, for the board, Yossi Ciechanover,
at least six months. the company is worth more
The decision to put off the than $500 million.
sale of the national airline corn-
However, the underwriters'
pany came as a result of the assessment of El Al's value is
wide gap between the govern- only about $130 million.
ment's assessment of the value
Mr. Harley attributed the
of El Al's assets and the un- wide gap in valuations to the
derwriters' evaluation of what fact that El Al does not fly on
the company is worth on the Shabbat,
market.

Cyclone Fences In U.S. Navy Contract

Cyclone Aviation Pmducts Ltd. U.S. companies for the contract.
of Israel has won a $2.5 million Cyclone will supply the U.S.
U.S. Navy contract to supply Navy with pilot and fighters
naval helicopter systems. chairs to be installed on CH-53
The Karmiel-based aviation transport helicopters.
products firm competed with

Teva Gains FDA Approvai if 7tir Drug

Israeli firm Teva announced it Hydrochloride, sold under the
has received an additional U.S. trade name Pamelor.
Food and Drug Administration
Teva estimates the U.S. mar-
(FDA) approval for the generic ket for the drug at $120 million
antidepressant Notriptyline per year.

Israel: It's No Mexico

Israel is an unlikely candidate
for an economic crisis of the sort
that has befallen Mexico and
sent shock waves throughout
the world, said World Bank
Chief Economist and former

Bank of Israel governor

Michael Bruno.
Speaking at the opening of a

seminar on capital flows which
preceded the annual general
meeting of the board of gover-
nors of the Inter-American De-
velopment Bank in Jerusalem,
Mr. Bruno said Israel's fiscal
and monetary policies are on
the right track.

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