Court Upholds Cell Carrier's Right to Charge for Unused Lines
A court in Bat Yam has ruled that a cellular provider can continue to charge customers for dormant phone lines, even if they are never used. The ruling came after a customer sued Cellcom, claiming she had been wrongly charged for a SIM card that remained unused for approximately four years. The judge examined the contract and found that the monthly fee was tied to the line itself, not its actual usage, meaning active use was not a condition for billing.
Cellcom maintained that the contract explicitly stated the customer agreed to pay for the line regardless of usage. The court agreed, stating that the contract addressed the issue and the customer had signed it. This decision validates Cellcom's practice of charging for inactive lines, which the customer perceived as a company error but was, in fact, a contractual clause.
This case highlights a common issue in consumer contracts, particularly in the telecommunications sector. According to the Ministry of Communications, over 7,000 consumer complaints were filed in 2024, with over 40% related to cellular services and 51% to internet. Overcharging was the leading reason for these complaints, resulting in over 800,000 shekels being returned to consumers. These issues often stem from contract clauses such as ongoing charges after service disconnection, price hikes after promotional periods, and automatically added services.
The average monthly revenue per Cellcom subscriber was 38.6 shekels in the second quarter of 2026. While the company added around 70,000 subscribers in the past year, long-term customers can face significant price differences compared to new promotional offers. For example, a family with four lines at 55 shekels each pays 220 shekels monthly, while new packages from the same companies might cost 30 shekels per line. This loyalty penalty, amounting to 1,500 to 2,500 shekels annually, is often embedded in a single contract clause.
Standard cellular contracts are drafted by the company and accepted by the customer, often online or over the phone. Courts review such clauses under the Uniform Contracts Law. In the Bat Yam case, the judge found the dormant line clause legitimate, emphasizing that consumers should scrutinize contracts before signing. Key clauses that impact pricing include post-promotion price increases, dormant lines, and bundled services. Consumers can negotiate fixed prices for longer periods and request separate billing for devices purchased on installment plans, which continue to incur charges even after the service is disconnected or the customer switches providers.
