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Bank Hapoalim assesses that Cellcom is worth $1.9 billion, according to a review written about Discount Investment Corporation (TASE:DIC).

The bank estimates the mobile communications operator's value per subscriber at $830.

Cellcom has been launching its GSM network on the quiet, the bank adds, in order to prevent a stampede of its clients to the new system, which could impede its debugging, its orderly introduction, and hinder tailoring for individual users.

Meanwhile, however, Cellcom and its shareholders will be paying the price of maintaining two networks in parallel, Hapoalim analyst Moshe Moshkovitz writes. The company's operating and maintenance costs will rise significantly during this time.

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Income will start coming from the new GSM network in the second half, as new subscribers join and veteran subscribers shift to it from the old network.

Another burden on Cellcom is its marketing campaign, to increase its allure at the expense of arch-rival Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD), which also runs a GSM network, Moshkovitz writes.

The rate of new subscriptions fell in the first quarter but should pick up again, he predicts, thanks to the new network and to marketing efforts. He sees no change in the rate of subscribers abandoning it for Partner 2.6%.