The end of an era / Caller's choice: Fast and costly/cheap and slow
Israeli cellular consumers now have a choice they never had before: An expensive and complicated product or a simple and cheap product with Internet service only.
Two days after the earthshaking launch of two new cellular networks, Israeli consumers are beginning to realize the cellular market no longer needs to be the same homogeneous one they have gotten so used to.
The lack of competition was based on the methods of the three old operators: Cellcom, Pelephone and Partner. The quality, technology, phones, customer service, marketing tricks, multiplicity of packages, strong brands and market shares were all more or less the same for all three, and there was little incentive to leave one company for another. None of the firms stepped out of line. That is how they cut down on competition and raised their profits.
The role of Golan Telecom's competitiveness is to create a whole new paradigm and shake up the market - and provide the customer with something new. It has already managed to do so in a number of ways.
First of course is the price. Golan is offering a very low price, only NIS 99. Second is in the packages offered: Unlimited calls. The third change is in its distribution method: Golan offers only online customer service.
Golan can get away with it since it is offering customers such a simple deal that there is no need for complicated service. When was the last time you called the customer service line of the Israel Electric Company? Yes, Golan's customer service can also be minimal.
The old cellular firms set up huge customer service departments only because they chose to drown their customers in thousands of different plans and possibilities. They confused and befuddled their customers in an attempt to squeeze more and more money out of them. These customers ran into so many problems and questions that the companies needed thousands of call center employees to answer tens of thousands of calls every day.
Golan, and also HOT Mobile, don't need all of that. Israeli cellular consumers now have a choice they never had before: An expensive and complicated product with relatively fast customer service, or a simple and cheap product with Internet service only. Now you just have to choose.