Pelephone

Pelephone is an Israeli mobile telecommunications operator and a subsidiary of Bezeq, the country's principal fixed-line telecommunications group. Established in 1985 as a joint venture between Motorola and Tadiran, the company was created after Motorola received a contract to construct Israel's first mobile telephone network. Pelephone began operating in March 1986 and became the first company to offer mobile telephony services in Israel. Its early arrival gave the brand unusual cultural influence: the word Pelephone, whose Hebrew name can be translated approximately as “wonder phone,” became a genericized term commonly used in Israel for a mobile phone, even when the device or service came from another provider. The company initially operated as a monopoly in Israeli mobile communications. That position ended in 1994, when Cellcom entered the market, followed by Partner in 1999. Competition reshaped Pelephone from a pioneering network utility into one of several national operators competing through network quality, handset offerings, customer pricing, data services, and targeted sub-brands. Bezeq acquired a 50 percent stake in Pelephone in 1994 and purchased Motorola's remaining interest in 2004, making Pelephone wholly owned by Bezeq. Pelephone's network technology evolved through several major generations. Its original network used AMPS and NAMPS technology in the 850 MHz band. The company moved to IS-95 CDMA in 1998 and added CDMA2000 and EV-DO data capabilities in 2004. It launched a UMTS 3G network in the 850 MHz and 2100 MHz bands in early 2009, upgraded that network to HSPA+ in 2010, and stopped selling CDMA-compatible handsets in March 2009. Pelephone introduced LTE service in the 1800 MHz band in 2014 and launched 5G NR services using the 3500 MHz band in 2020. The legacy CDMA network was ultimately shut down on 28 June 2017. Beyond its principal Pelephone brand, the company used multiple brands and commercial arrangements to reach distinct customer segments. These included Esc, a youth-oriented venture associated with radio station Eco 99FM; Sawa, a lower-cost brand aimed at the Arab-Israeli market; k-mobile, which operated from 2017 to 2019; Hii-Mobile, launched in 2016 for young people, soldiers, and students; and Pmobile, a lower-priced retail proposition created with the Bug Multisystem chain. Pelephone also hosted virtual operators, including Rami Levy Communications from December 2011 and YouPhone, which became fully owned by Pelephone in 2015 before its operations were merged. In the early 2020s, the company moved away from a multi-brand structure. Under CEO Ilan Siegel, the flanker brands were closed or integrated into the main Pelephone proposition by 2022, while management emphasized the expansion of 5G and concentration on the core brand. Pelephone remains an Israel-focused operator offering mobile voice, messaging, broadband data, network access for virtual operators, devices, and related communications services.

Pelephone was created in 1985 as a joint venture between Motorola and Tadiran. Its origins followed a November 1983 contract under which Motorola was selected to build Israel's first mobile telephone network. Pelephone began network operations in March 1986, establishing the first commercial mobile telephony service in Israel. The company initially operated a car-phone-oriented service, reflecting the high cost and limited availability of early cellular equipment. One of its first television commercials showed actor Hanan Goldblatt using a car phone while conducting stock transactions through a broker, presenting mobile communication as a tool for business mobility and modern convenience. Benny Epstein served as the company's first chief executive until 1994. For its first years Pelephone was Israel's only mobile operator. Its monopoly ended in 1994 with the entry of Cellcom. The same year, Bezeq acquired half of Pelephone, beginning the ownership transition that eventually placed the operator within the Bezeq Group. Partner, then associated with the Orange brand, entered the Israeli market in 1999 and created a three-operator competitive structure. In 2004 Bezeq acquired Motorola's remaining stake and became Pelephone's sole owner. The network underwent repeated technical transformations. The original radio system used AMPS and NAMPS in the 850 MHz band. In 1998 Pelephone converted to IS-95 CDMA, and in 2004 it added CDMA2000 and EV-DO capabilities for mobile data. The company launched a UMTS 3G network using 850 MHz and 2100 MHz spectrum in early 2009. It stopped selling CDMA handsets in March of that year and upgraded the UMTS network to HSPA+ in 2010. LTE service followed in 2014 on the 1800 MHz band. In April 2017 Pelephone announced that the CDMA network would be retired during the summer; the shutdown was completed on 28 June 2017. The operator later introduced 5G NR service in 2020 using the 3500 MHz band. Pelephone also expanded through wholesale relationships and brand segmentation. In December 2011 it became the host network for Rami Levy Communications, described as the first Israeli mobile virtual network operator to commence service. YouPhone, also known as Alon Cellular, operated as a virtual brand on the Pelephone network. It was initially connected with Alon Blue Square Israel, but Pelephone acquired full ownership in 2015 and subsequently integrated its operations. Other targeted brands included Esc, a youth-oriented project that operated from 2003 to 2007 in cooperation with Eco 99FM; Sawa, aimed at the Arab-Israeli market; and k-mobile, which operated between 2017 and 2019. In April 2016 Pelephone launched Hii-Mobile in cooperation with Hunnam, targeting young people, soldiers, and students with tailored offers. In May 2016 it partnered with Bug Multisystem to launch Pmobile, a lower-priced mobile service and handset proposition. These initiatives reflected the pressure created by competition and the growth of low-cost offers in the Israeli market. By 2022 Pelephone had closed or absorbed its remaining flanker brands and returned emphasis to the main Pelephone identity. This consolidation was associated with a strategy attributed to CEO Ilan Siegel, which prioritized investment in 5G and simplified brand management. The company has remained an Israel-focused mobile operator, providing cellular connectivity, data services, devices, and network hosting for virtual operators. In June 2016, the company was reported to have approximately 2.26 million wireless subscribers. Historical staffing figures are inconsistent: company statements cited approximately 4,500 employees in 2012, while a workers' union gave a lower estimate of around 3,800.

1. 2022Flanker brands are consolidated

   The company completed the closure or integration of its secondary brands and concentrated on the principal Pelephone brand and 5G expansion.

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2. 20205G NR service launches

   Pelephone began offering 5G NR services in the 3500 MHz band.

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3. 2017CDMA network is retired

   Pelephone completed the shutdown of its legacy CDMA network on 28 June.

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4. 2015YouPhone becomes fully owned by Pelephone

   Pelephone took complete ownership of the YouPhone virtual mobile operation and later merged its activities.

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5. 2014LTE service launches

   The company introduced LTE service using the 1800 MHz band.

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6. 2009UMTS network launches

   Pelephone launched 3G UMTS service in the 850 MHz and 2100 MHz bands.

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7. 2004Bezeq becomes sole owner

   Bezeq acquired Motorola's remaining interest in Pelephone.

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8. 1998Network converts to IS-95 CDMA

   Pelephone replaced its original AMPS/NAMPS system with IS-95 CDMA technology.

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9. 1994Bezeq acquires a 50 percent stake

   Bezeq purchased half of Pelephone as Cellcom's market entry ended the company's mobile monopoly.

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10. 1986Commercial network operations begin

    Pelephone launched mobile network operations in March, becoming Israel's first mobile telecommunications provider.

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11. 1985Pelephone is established

    Motorola and Tadiran formed Pelephone as a joint venture to develop and operate Israel's first cellular network.

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12. 1983Motorola receives contract to build Israel's first mobile network

    Motorola was awarded the contract that led to the creation of Pelephone and Israel's first mobile telephone network.

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A nationwide Israeli mobile operator built around network coverage, successive mobile-technology upgrades, consumer connectivity, and a broad domestic customer base. Historically it used multiple sub-brands to address youth, student, Arab-Israeli, and value segments; more recently it has emphasized the core Pelephone brand and 5G expansion.

• Pelephone mobile servicesMobile telecommunications1986

  The core Pelephone proposition consists of mobile voice, messaging, and cellular connectivity for customers in Israel. The service has operated across successive generations of network technology, from the company's original AMPS/NAMPS system through CDMA, UMTS, LTE, and 5G NR. Consumer plans are supported by device sales and mobile data offerings.

• Pelephone LTE4G mobile data2014

  Pelephone's LTE service was launched in 2014 using the 1800 MHz band. It provides higher-speed mobile broadband for smartphones, tablets, and other compatible devices and became part of the operator's principal mobile data infrastructure before the introduction of 5G.

• Pelephone 5G5G mobile telecommunications2020

  Pelephone launched 5G NR services in 2020 using spectrum in the 3500 MHz band. The 5G offering represents the company's current network-generation strategy and was a central reason for consolidating earlier sub-brands under the main Pelephone identity.

• Hii-MobileYouth-oriented mobile brand2016

  Hii-Mobile was introduced in cooperation with Hunnam as a targeted mobile brand for young people, soldiers, and students. Its proposition emphasized attractive packages for these groups. It was part of Pelephone's earlier multi-brand strategy and is no longer presented as a separate active brand.

• PmobileValue mobile service and retail brand2016

  Pmobile was launched jointly by Pelephone and the Bug Multisystem retail chain. It offered mobile network services and handsets at prices positioned below Pelephone's standard offers. The brand formed part of the operator's effort to address price-sensitive customers.

• Rami Levy Communications hostingMobile virtual network hosting2011

  Pelephone provided host-network infrastructure for Rami Levy Communications beginning in December 2011. The arrangement enabled a virtual operator to sell mobile services using Pelephone's network rather than operating an independent radio access network.

• 1986Early car-phone launch advertising

  Israel

  One of Pelephone's first television commercials featured actor Hanan Goldblatt using a car phone while conducting stock transactions through a broker. The advertisement presented mobile telephony as a business and mobility tool at a time when cellular service was new in Israel.

  Outcome. The campaign helped establish the new service's public identity, although no quantitative campaign result is reported in the source material.

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• 2022Consolidation around the main Pelephone brandStrategy

  Pelephone had operated several flanker brands and targeted propositions between 2003 and 2022, but managing multiple identities became less aligned with its network-investment priorities.

  What changed. Under CEO Ilan Siegel, the company closed or integrated its secondary brands and focused on the main Pelephone brand and 5G expansion.

  Aftermath. The operator moved toward a simpler brand architecture while retaining its Israel-focused mobile network business.

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• 20205G network introductionProduct launch

  The Israeli mobile market was moving toward fifth-generation networks and higher-capacity mobile broadband.

  What changed. Pelephone launched 5G NR services using the 3500 MHz band.

  Aftermath. 5G expansion became a central element of the company's subsequent strategy.

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• 2017Retirement of the CDMA networkGeneration change

  Pelephone's newer UMTS and LTE networks had replaced the commercial role of its legacy CDMA platform.

  What changed. After announcing the plan in April, Pelephone shut down the CDMA network on 28 June 2017.

  Aftermath. The shutdown completed the operator's migration away from its original CDMA-based network strategy.

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• 2014LTE network launchGeneration change

  Growing demand for mobile broadband required a successor to 3G data services.

  What changed. Pelephone launched LTE service using the 1800 MHz band.

  Aftermath. LTE became a major part of the operator's mobile data offering before the introduction of 5G.

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• 2009Shift from CDMA toward UMTSGeneration change

  Pelephone was developing a 3G UMTS network while its earlier CDMA platform was becoming less central to handset sales and future network development.

  What changed. The company launched UMTS in the 850 MHz and 2100 MHz bands and stopped selling CDMA handsets in March 2009.

  Aftermath. Pelephone upgraded the UMTS network to HSPA+ in 2010 and later introduced LTE and 5G services.

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• 2020United Nations settlement-business database listingControversy

  On 12 February 2020, the United Nations published a database of companies identified as involved in business activities related to Israeli settlements in the West Bank, including East Jerusalem, and the occupied Golan Heights. Pelephone was included because of activities connected with Israeli settlements. The listing generated criticism in the context of the broader international dispute over settlement-related commercial activity.

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• 2020Pelephone launches 5G services

  Pelephone introduced 5G NR services in Israel using spectrum in the 3500 MHz band.

  Product launchProduct generation
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• 2017Pelephone shuts down its CDMA network

  After announcing the retirement of its legacy CDMA system earlier in the year, Pelephone completed the shutdown on 28 June 2017.

  Product generation
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• 2016Pelephone launches Hii-Mobile

  The company introduced Hii-Mobile with partner Hunnam, targeting young people, soldiers, and students through specially priced packages.

  Product launchPricing
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• 2011Pelephone becomes host network for Rami Levy Communications

  Pelephone began hosting Rami Levy Communications, identified as Israel's first mobile virtual network operator to begin operating.

  Product launchOther
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• 2004Bezeq acquires full ownership of Pelephone

  Bezeq completed the acquisition of Motorola's remaining interest, making Pelephone a wholly owned Bezeq subsidiary.

  M&A
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• 1986Pelephone begins operating Israel's first mobile network

  Pelephone launched commercial mobile network operations after being established by Motorola and Tadiran to build Israel's first mobile telephone system.

  Product launchOther
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1. Pelephone
2. United Nations Office of the High Commissioner for Human Rights: Database of business enterprises involved in settlement-related activities