Cellcom Israel Ltd. (NYSE:CEL) Q3 2019 Earnings Conference Call - Final Transcript
Nov 27, 2019 • 09:00 am ET
Thank you. Ladies and gentlemen, at this time we will begin the question-and-answer session. [Operator Instructions] The first question is from Tavy Rosner of Barclays. Please go ahead.
Hey. Good afternoon. Thanks for taking my questions. I was wondering if you could share your comments about the regulatory framework that was published by MoC couple of weeks ago. Do you think it's a good thing for the industry in general and for Cellcom and IBC specifically?
We're looking very thoroughly to the recommendation by the ministry and the other ministries that were in that committee. I think there are some good things. I think there are some things that we're not happy with in terms of the cost of rolling out the network in areas that are less profitable. We think that there's some major changes that need to be made in that. So, we will be offering our opinions in the hearing that will be coming in the next few weeks. We are concerned that the offer that has been put on the table won't allow all the people of Israel to enjoy the fiber network and we feel that some things need to be changed there in order to improve it. And like I said, we'll give all our opinions when the time comes. And I think the other thing I want to say about it is I think we can also assume that it's going to take a little time to see things happening especially if we'll see new elections in Israel, then it's going to take a little time if -- to see whether and when it will be implemented.
Yes. That's very helpful. Maybe just big picture questions. I mean you're the last company to report so we can observe the other companies' numbers and one of your competitor is talking about 450,000 home passed, you have 300,000 and both of you have very big ambitions. So I mean looking down the road, you passing I mean in home, partner probably something similar, Bezeq increasing penetration down the road. Is there a risk that fiber from the new broadband and then competition on prices which would therefore reduce your return on investment in fiber? Is there something we should be concerned about?
I think the risk of price wars is always there. But I think the upside of rolling out a fiber network with potential new product and services that will be coming in the future and some of them are already here is an upside that we can also look at. Everybody is rolling and talking. We've made a decision to do our network rollout with IBC because we believe the right model for the market is a wholesale company and that's the best way to consolidate the effort of rollout and at least cut some of the costs down and then the ability or the margin that will be there even for price wars is better than rolling out [Technical Issues] IBC I think