The new plan will save the IDF NIS 4 million each year.

The Israel Defense Forces (IDF) is extending its contract with Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) while achieving annual savings of NIS 4 million on the new deal. Talks were held in the past few months in which the IDF and Ministry of Defense successfully upgraded their agreement, and are moving all career officers to the new plan.

Under the agreement, two plans will be offered. This first is an unlimited mobile plan, including 3GB Internet and 200 international minutes, for NIS 46 per month. The second plan has the same terms, but includes a phone (from the phones included in the agreement between the companies), for NIS 99 per month. The agreement will take effect soon, and the contract has been extended until 2017.

The IDF said, “As planned, one year before the expiry of our agreement with Cellcom, a feasibility study was conducted for a new tender. Following intensive negotiations, led by the IDF and the Ministry of Defense with Cellcom, significant improvements were achieved in the agreement – in terms of meeting IDF personnel needs, and cost IDF costs. Consequently, it was decided to exercise the option to extend the contract until October 2017.”

Cellcom CEO Nir Sztern said, “We view the IDF’s repeated choice of Cellcom as a vote of confidence in its technological abilities and the high-level of service that the company offers the IDF and family members, and we are proud of this. We believe that the extension of the agreement will let a new generation of soldiers and their families to join the tens of thousands of IDF Cellcom subscribers, with favorable terms.”