Cellcom Israel Ltd (CEL)

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Nov 15 (Reuters) - Cellcom , Israel's largest mobile phone operator, warned that price erosion and regulatory changes which sliced into third-quarter earnings would continue to weigh on results in the fourth period. Cellcom and rivals Partner and Bezeq unit Pelephone were hit at the start of 2011 by a steep reduction in fees mobile operators charge each other to connect calls and the elimination of exit fines for customers. "The cellular market underwent changes this year that significantly affected the level of competition and acceleration of price erosion, causing a decrease in revenues and profits," Cellcom CEO Amos Shapira said in a statement. "Notwithstanding, Cellcom Israel has continued to maintain its leading position, and even strengthen its position among its competitors." Yaacov Heen, chief financial officer, said the reduction of interconnect fees and price erosion would "continue to affect our results for the fourth quarter(Thomson Reuters 08:54 AM ET 11/15/2011