[Israel] Pelephone Limits Download Speeds of its MVNO Subscribers

  
Earlier this month I reported on the new age of mobile competition in Israel - the launch of the first MVNO service, by the retail food chain Ramy Levi, served by Pelephone's network (see "Competition Leads Partner [Israel] to Offer Reduced Speed Mobile Internet Instead of Overage Fees" - here).

Amitai Ziv (picture) reports to The Marker that Ramy Levi's customers are complaining that the download speed of the new service is limited to 2Mbps vs. the promised 7.2Mbps.

"When switching from a Ramy Levi's to a Pelephone SIM card, speed goes back to 7.2Mbps .. tested in numerous places .. Both companies did not deny the facts .. Pelephone hinted that limiting speed to 2Mbps is part of the contract with Ramy Levi"

Article - here, Hebrew.

Competition Leads Partner [Israel] to Offer Reduced Speed Mobile Internet Instead of Overage Fees

 
Until recently, there was almost no competition in the Israeli cellular services market. 3 operators (Partner, Cellcom and Pelephone) of similar size + a smaller one (MIRS) offered similar, high prices to the consumer market.

Recent government regulation changed the market, leading to increased competition that shifts gear this week with the first MVNO operator, Rami Levy (a chain of discount supermarkets, publically traded in the Tel Avis Stock Exchange - RMLI).

Although Rami Levy operates as an MNVO (reselling Pelephone services) it announced a very low pricing strategy (compared to the existing plans) based on actual consumption rather than a commitment to packages of minutes, SMS and data.

The incumbents response is due this week, and Amitai Ziv and Ruty Levi (pictured), The Marker reveal Partner (branded as Orange, although not part of the Orange Group) plans.

In addition for estimated 40% reduction compared to existing plans, Partner will offer customers that exceed their data quota a reduced speed service for the rest on the month, rather than paying overage fees (which were very expansive).

Story here, Hebrew.