Hot Mobile
Hot Mobile (Hebrew: הוט מובייל) is an Israeli mobile network operator and fully owned subsidiary of HOT Telecommunication Systems Ltd., delivering wireless cellular services including voice calls, high-speed data via 4G LTE and 5G networks, SMS, and international roaming to residential and business customers across the country.[1][2][3] Founded in 1994 as Mirs Communications, which initially specialized in wireless dispatch and trunked radio systems using Motorola's iDEN technology, the company was acquired by HOT in 2011 for 1.3 billion shekels and rebranded as Hot Mobile in 2012 to compete in the consumer cellular market with affordable, high-data plans.[4][5][2] Holding about 11-12% of Israel's mobile subscriptions market share, Hot Mobile has earned recognition for superior performance in user experience categories like gaming, voice apps, and network availability, though it encountered regulatory scrutiny in 2025 when fined nearly $100,000 by the Ministry of Communications for overcharging subscribers amid customer complaints.[6][7][8][9]Company Overview
Founding and Ownership
Hot Mobile originated as Mirs Communications Ltd., established in 1994 to provide wireless dispatch and push-to-talk services in Israel using Motorola's Integrated Digital Enhanced Network (iDEN) technology.[10] Initially operating as a subsidiary of Motorola Israel, Mirs served business and public safety sectors with specialized communication solutions before expanding into broader mobile offerings.[11] In December 2009, Motorola sold its full ownership of Mirs to Patrick Drahi's Cool Holdings for approximately NIS 650 million (about $170 million).[12] Drahi, a French-Israeli businessman and founder of Altice Group, subsequently facilitated the acquisition of Mirs by HOT Telecommunication Systems Ltd.—a cable and telecom provider he controlled through Cool Holdings—for NIS 1.3 billion in 2011, aiming to integrate mobile services into HOT's portfolio.[13] This transaction positioned Mirs as a strategic asset for HOT to compete in Israel's mobile market following Mirs' win of 3G spectrum licenses in a 2011 government tender.[14] The company rebranded as Hot Mobile in 2012, aligning with HOT's branding and launching consumer-focused UMTS services.[15] Hot Mobile operates as a wholly owned subsidiary of HOT, which remains under the control of Altice Europe N.V., with Drahi holding majority influence through his investment vehicles.[16] As of October 2025, no finalized change in ownership has occurred despite a July 2025 non-binding acquisition offer from Pelephone for up to NIS 2 billion.[17]Corporate Structure and Leadership
Hot Mobile Ltd. functions as a wholly owned subsidiary of HOT Telecommunication Systems Ltd., the parent entity that integrates mobile services with cable television, broadband internet, and fixed-line telephony operations across Israel.[16] HOT Telecommunication Systems Ltd. is controlled by Altice International S.a.r.l., a division of the Altice Group founded by Patrick Drahi, which acquired full ownership of HOT in stages culminating by 2012.[16] This structure positions Hot Mobile within a multinational telecommunications conglomerate emphasizing converged services, with Altice providing strategic oversight and financing.[17] In July 2025, Pelephone Ltd., a mobile operator under the Bezeq Group, submitted a preliminary non-binding letter of intent to acquire 100% of Hot Mobile from Altice International for up to 2 billion Israeli shekels (approximately $594 million), aiming to consolidate market share amid competitive pressures in Israel's telecom sector.[18] As of October 2025, the proposed transaction has not been finalized, leaving ownership unchanged, though Altice has indicated ongoing evaluation of strategic options for its Israeli assets, including potential partial divestitures.[19] The HOT Group, encompassing Hot Mobile, is led by CEO Tal Granot Goldstein, who assumed the role in 2015 and oversees integrated operations with over 20 years of experience in telecommunications and finance.[20] At the Hot Mobile division level, key executives include Shira Aviv as Chief Marketing Officer, responsible for consumer acquisition and branding strategies, and Yanir Peleg as General Counsel, handling regulatory compliance and legal affairs.[21] Additional senior roles feature Oran Pinhas as Chief Information Officer, focusing on IT infrastructure, and On Tzur as Chief Technology Officer, managing network development and innovation.[21] These leaders report into the HOT Group structure, aligning mobile-specific initiatives with broader corporate objectives under Altice's global framework.Historical Development
Inception and Early Operations (1994–2010)
Mirs Communications Ltd. was founded in 1994 as a fully owned subsidiary of Motorola Israel Ltd., with the aim of delivering advanced wireless dispatch and communication services utilizing Motorola's proprietary iDEN (Integrated Digital Enhanced Network) technology.[22][1] iDEN enabled a hybrid system combining trunked radio dispatch (push-to-talk functionality similar to walkie-talkies) with limited digital voice and data capabilities, distinguishing it from traditional cellular networks like those operated by Pelephone or Cellcom.[23] Initial rollout targeted enterprise and professional users requiring reliable group communications, such as logistics, security, and public safety sectors, leveraging Motorola's expertise in radio systems.[1] By the late 1990s, Mirs had expanded its iDEN infrastructure across Israel, positioning itself as the fourth major player in the wireless market alongside dominant cellular operators.[23] The network emphasized spectrum-efficient trunking for high-capacity dispatch channels, operating primarily in allocated frequencies for specialized mobile radio services rather than full-spectrum cellular voice.[1] Innovations included early adoption of enhanced handsets; Mirs pioneered the introduction of mobile devices with Java support, color displays, and integrated GPS receivers in Israel, facilitating location-based services for fleet management and emergency response.[24] During the 2000s, operations grew to serve hundreds of thousands of subscribers focused on business-oriented dispatch solutions, with the company securing key contracts including exclusive wireless provisions for the Israel Defense Forces starting in 2005.[11] Network enhancements supported evolving iDEN features like packet data transmission for short messaging and basic internet access, though voice services remained secondary to push-to-talk until regulatory shifts.[25] By 2010, amid Motorola's broader divestitures, Mirs maintained a niche market share under 5% in the overall mobile sector, primarily as Israel's leading iDEN provider, setting the stage for its transition to full cellular operations.[26][27]Rebranding and Network Launch (2011–2015)
In July 2011, cable operator HOT announced its acquisition of Mirs Communications, Israel's smallest mobile operator, for 1.3 billion shekels (approximately $378 million), aiming to integrate mobile services into its portfolio to compete more effectively in the telecommunications market.[5] [27] The deal, approved by HOT's board, included plans for HOT to provide backhaul infrastructure services to Mirs's approximately 550 mobile antennas via its cable network, with connections targeted for completion by the end of 2014.[13] The acquisition was completed in November 2011, marking a significant step in consolidating Mirs under HOT's ownership.[28] Following the acquisition, Mirs Communications underwent rebranding to Hot Mobile in 2012, aligning it with HOT's existing brand identity and facilitating unified marketing of bundled telecom services.[1] [2] This rebranding coincided with the commercial launch of Hot Mobile's nationwide UMTS-based network on May 14, 2012, which had been enabled by a UMTS license awarded to Mirs in April 2011 alongside Golan Telecom.[5] [29] The initial offerings included low-cost all-inclusive plans starting at 89 NIS per month, targeting price-sensitive consumers and sparking competitive pricing in Israel's mobile sector.[29] The network initially operated HSPA+ services on the 2100 MHz band, building on Mirs's prior iDEN infrastructure for push-to-talk capabilities.[30] To accelerate network expansion, Hot Mobile entered a network-sharing agreement with Partner Communications on November 8, 2013, which received antitrust approval on May 23, 2014, allowing shared use of infrastructure for enhanced coverage and cost efficiency.[31] This partnership supported preparations for advanced technologies amid Israel's evolving regulatory landscape. In January 2015, Hot Mobile secured 5 MHz of spectrum in the 1800 MHz band during the 4G LTE auction and promptly began deploying LTE services, marking the operator's entry into fourth-generation mobile broadband.[15] [32]Expansion and Partnerships (2016–Present)
In 2016, Hot Mobile continued to leverage its network sharing agreement with Partner Communications, established in 2013 and approved by Israeli regulators in 2014 and 2015, to expand 4G LTE coverage across Israel without sole reliance on proprietary infrastructure.[33][34] This partnership enabled Hot Mobile to achieve broader geographic reach by utilizing Partner's sites in underserved areas, supporting subscriber growth amid intensifying competition in the Israeli mobile sector. By 2020, Hot Mobile participated in Israel's initial 5G spectrum allocation, awarded by the Ministry of Communications to three operators including Hot Mobile and Partner Communications.[35] Hot Mobile collaborated with Partner on this rollout, securing frequencies to deploy non-standalone 5G services overlaid on existing 4G infrastructure, with commercial launch occurring on September 29, 2020, alongside Pelephone and Partner.[36] This expansion marked Hot Mobile's entry into next-generation mobile broadband, focusing on urban centers initially to enhance data speeds and capacity for high-demand users.[37] The partnership with Partner extended into 5G infrastructure sharing, allowing Hot Mobile to optimize capital expenditures while complying with regulatory mandates for nationwide deployment.[35] As of 2024, ongoing regulatory efforts to boost competition included plans to open cellular infrastructure to new entrants, potentially benefiting Hot Mobile's expansion through additional wholesale access.[38] In July 2025, Bezeq's subsidiary Pelephone submitted a preliminary non-binding offer to acquire Hot Mobile from parent company Altice International for up to 2 billion shekels (approximately $594 million), signaling potential consolidation that could further integrate Hot Mobile's operations with larger network assets if approved by regulators.[17] This development, subject to due diligence and antitrust review, reflects Hot Mobile's strategic value amid market maturation but remains unresolved as of October 2025.[18]Network Infrastructure
Coverage and Roaming Agreements
Hot Mobile delivers mobile network coverage throughout most populated areas of Israel via its proprietary infrastructure, which is augmented by domestic roaming arrangements to achieve near-nationwide service. The operator's core network focuses on urban and suburban zones, with expansions into rural regions supported by shared facilities. Subscriber access to Partner Communications' antennas fills gaps in Hot Mobile's direct footprint, particularly in remote or underdeveloped locales, as stipulated in their ongoing infrastructure-sharing pact.[1] In November 2013, Hot Mobile and Partner Communications formalized a network-sharing agreement, creating a 50-50 owned subsidiary tasked with building, operating, and maintaining joint cellular towers and spectrum resources. This collaboration has enabled reciprocal roaming, allowing Hot Mobile users seamless connectivity on Partner's spectrum in underserved areas without additional charges. Previously, from its launch phase, Hot Mobile relied on an exclusive nationwide roaming deal with Pelephone, which provided free access to the latter's infrastructure through December 2014 to support initial rollout while constructing its own assets.[33] Internationally, Hot Mobile supports roaming for postpaid plans through agreements with foreign carriers in over 150 countries, offering tiered packages for calls, texts, and data usage abroad—such as daily or multi-day bundles priced from approximately 20-100 Israeli shekels depending on destination and volume. These services connect via partner networks like major European, American, and Asian operators, with activation required via app or customer service; however, prepaid tariffs like HOTalk exclude international roaming entirely to control costs. Coverage quality varies by partner reliability and local regulations, with users advised to verify destination-specific options pre-travel.[39][40]Technologies and Frequency Bands
Hot Mobile's cellular network supports multiple generations of mobile technology, including legacy 2G GSM with GPRS and EDGE enhancements for basic voice and data services on 900 MHz and 1800 MHz bands.[1] For 3G, the operator deploys UMTS/HSPA, including HSDPA, HSUPA, and HSPA+ protocols, primarily on Band 1 (2100 MHz) and Band 8 (900 MHz) to provide higher-speed data and improved coverage in urban and rural areas.[1] The transition to 4G LTE began with deployments on Band 1 (2100 MHz) and Band 3 (1800 MHz), enabling faster broadband speeds for mobile internet and video streaming; additional support includes Band 28 (700 MHz APT) for extended rural coverage with channel bandwidths of 5-20 MHz, Band 32 (1500 MHz L-band) for downlink-only supplemental capacity, and planned expansion to Band 7 (2600 MHz).[1] 5G NR services were commercially launched on September 29, 2020, initially leveraging non-standalone architecture integrated with the LTE core, with spectrum in Band n28 (700 MHz, 703-748 MHz uplink and 703-803 MHz downlink) for wide-area coverage and Band n78 (3300-3800 MHz) supporting up to 100 MHz bandwidths for high-capacity urban deployments.[1][41]| Technology | Bands | Key Details |
|---|---|---|
| GSM (2G) | 900 MHz (E-GSM), 1800 MHz (DCS) | Supports GPRS/EDGE for legacy voice/SMS; phased out in favor of higher generations.[1] |
| UMTS/HSPA (3G) | B1 (2100 MHz), B8 (900 MHz) | Provides 3.5G speeds via HSDPA/HSUPA/HSPA+; used for fallback coverage.[1] |
| LTE (4G) | B1 (2100 MHz), B3 (1800 MHz), B7 (2600 MHz, planned), B28 (700 MHz APT), B32 (1500 MHz L-band, downlink only) | Deployed since mid-2010s; B3 and B1 active as of August 2024 for primary 4G service.[1] |
| 5G NR | n28 (700 MHz), n78 (3500 MHz) | Standalone upgrades ongoing; n78 enables high throughput in dense areas.[1][42] |
Services and Offerings
Consumer Mobile Plans
Hot Mobile offers prepaid mobile plans designed for cost-sensitive Israeli consumers, featuring unlimited domestic calls and SMS bundled with generous high-speed data allowances on 4G LTE and 5G networks. These plans emphasize affordability, with monthly recharges starting below ₪50 for basic usage and scaling to under ₪100 for high-data options exceeding 400GB, positioning the provider as a budget alternative in Israel's competitive telecom market.[40][43] Postpaid options are limited but available for long-term residents through select arrangements, often mirroring prepaid data volumes with added international calling perks.[44] Key prepaid plans include short-term starter packages for ₪30, providing 20GB data plus 1000 minutes and SMS valid for 10 days, suitable for light or temporary use.[45] Standard 30-day recharges offer 100GB data with unlimited local calls and SMS for ₪55, while mid-tier options deliver 250GB for ₪65 or 300GB for ₪69.[45][46] Higher-volume plans provide 400GB for ₪79, supporting heavy streaming and browsing without throttling until the allowance is exhausted.[47][46] For data-intensive consumers, Hot Mobile's 5G-enabled packages extend to 750GB or 1500GB high-speed data monthly, priced at ₪59–₪70 in postpaid formats that include 1650–1800 international minutes to select destinations, with auto-renewal and no long-term contracts required for eligible users.[44][48] Plans can be topped up via app, website, or retail, with overage charged at standard rates or speed reduced to 2G after cap.[40]| Recharge Amount (ILS) | Data Allowance | Calls & SMS | Validity Period |
|---|---|---|---|
| 30 | 20GB | 1000 min + unlimited SMS | 10 days |
| 55 | 100GB | Unlimited | 30 days |
| 65 | 250GB | Unlimited | 30 days |
| 79 | 400GB | Unlimited | 30 days |
Business and Specialized Services
Hot Mobile provides mobile telecommunication services tailored for businesses, including scalable plans designed for small to large enterprises with a minimum commitment of multiple lines. These corporate packages typically feature unlimited domestic calls and SMS, bundled international minutes, and data allocations ranging from 12 GB to 40 GB per line, with pricing starting at 25 NIS plus VAT per line for qualifying groups of four or more subscribers. For example, a plan offering unlimited usage with 40 GB data and international calls is available at 100 NIS for four lines.[50] Businesses benefit from dedicated support channels, such as a specialized hotline (1-800-800-053 or *2211 from Hot Mobile devices), available Sunday through Thursday from 08:00 to 16:00 and Fridays until 13:00. In addition to standard corporate mobility, Hot Mobile delivers specialized services such as push-to-talk over cellular (PTToC) solutions for operational coordination in sectors like government and public safety. In May 2020, Hot Mobile partnered with Motorola Solutions to deploy the WAVE PTToC platform, providing broadband PTT capabilities with nationwide cellular coverage to enhance efficiency for Israeli government offices and field personnel, enabling instant group communications and integration with existing devices.[51] The company also supports enterprise-grade messaging, facilitating bulk SMS campaigns and application-to-person (A2P) services through integrations like Infobip's Anam platform, which has enabled Hot Mobile to generate additional revenue streams via advanced signaling and monetization tools for business clients.[52] These offerings leverage Hot Mobile's 5G network for reliable, low-latency performance in mission-critical applications.[6]Market Position
Subscriber Metrics and Financial Performance
As of the first quarter of 2025, Hot Mobile maintained a subscriber base of approximately 2 million active users, positioning it as one of Israel's major mobile operators alongside Cellcom, Partner, and Pelephone.[53] [17] This figure reflects steady growth from earlier years, when the company reported 514,000 subscribers at the end of June 2013 following its rebranding and network expansion.[54] Subscriber additions have been supported by competitive pricing and bundling with parent company HOT Telecommunication Systems' fixed-line services, though recent years have seen slower net gains amid market saturation and intense competition in Israel's telecom sector, where total mobile subscriptions reached about 14.19 million in 2023.[55] Financially, Hot Mobile generated quarterly revenues of approximately NIS 220 million (around €55 million) in Q1 2025, contributing to the mobile segment's performance within Altice International's portfolio, as HOT is owned by Altice.[53] Overall, HOT's mobile service revenues declined by 3.8% year-over-year in Q4 2024 on a constant currency basis, attributed to pricing pressures, reduced interconnection fees, and a shift toward lower-ARPU prepaid plans amid economic challenges including inflation and the impacts of regional conflicts.[56] This contrasts with HOT's total revenues, which fell 3.5% year-over-year in the same period (excluding interconnection), though mobile ARPU remained stable due to upselling data packages and 5G adoption.[56] Profitability metrics, such as EBITDA margins for the mobile unit, have been squeezed by high network maintenance costs and regulatory obligations, with Altice reporting ongoing investments in infrastructure to counter churn rates hovering around industry averages of 1-2% monthly.[56]| Year/Period | Approximate Subscribers (millions) | Key Financial Note |
|---|---|---|
| 2013 (mid-year) | 0.514 | Rapid post-rebrand growth[54] |
| 2024 (est.) | ~2.0 | Stable base amid declines in revenue growth[17] |
| Q1 2025 | 2.0 | Quarterly revenue ~NIS 220m[53] |
Competition in the Israeli Telecom Sector
The Israeli mobile telecommunications sector features intense competition among four dominant mobile network operators (MNOs): Cellcom, Partner Communications, Pelephone, and HOT Mobile, which collectively serve over 14 million subscriptions in a market with approximately 9.8 million inhabitants, reflecting penetration rates exceeding 140% as of 2024.[57] This oligopolistic structure emerged following regulatory reforms in the early 2010s, including the entry of HOT Mobile as a low-cost disruptor in 2012, which spurred price reductions and service innovations across the board.[58] The Ministry of Communications has actively promoted rivalry through measures like mandatory number portability since 2008 and infrastructure-sharing mandates, though consolidation pressures persist, as evidenced by Pelephone's July 2025 bid to acquire HOT Mobile for $594 million amid stagnant revenue growth projected at a 0.6% CAGR through 2029.[59][60] Cellcom maintains the largest subscriber base at approximately 3.6 million as of December 31, 2024, leveraging its extensive 4G/5G coverage and bundled fixed-mobile services to retain market leadership, though it faces erosion from aggressive pricing by rivals.[61] Partner Communications, with over 3 million subscribers, competes on premium data plans and international roaming, benefiting from its historical ties to Orange and early 5G deployments.[59] Pelephone, owned by Bezeq Group, holds a strong position in enterprise services and legacy voice, with subscriber numbers estimated around 2.5-3 million, emphasizing reliability in urban and rural areas despite slower adaptation to data-centric models. HOT Mobile differentiates through budget-oriented plans and rapid network expansion, capturing share from price-sensitive consumers but trailing the incumbents in scale, with recent fines for overcharging highlighting operational challenges in a cutthroat environment.[62]| Operator | Estimated Subscribers (2024) | Key Competitive Edge |
|---|---|---|
| Cellcom | ~3.6 million | Largest base, comprehensive bundling |
| Partner | >3 million | Premium data, roaming partnerships |
| Pelephone | ~2.5-3 million | Enterprise focus, reliability |
| HOT Mobile | ~2 million (est.) | Low-cost plans, agile expansion |