Israeli cell phone carrier Cellcom Israel Ltd. (NYSE: CEL) is trading higher on almost 4 times average daily volume. While no reason has been given for the surge in volume, this weekend is extremely important for the Israel cell phone industry. Starting in December, number portability takes effect; meaning that customers will be free to take their phone numbers with them to any carrier they choose. No one is quite sure what will happen, but the anticipated marketing onslaught to persuade consumers to switch carriers, hasn't really materialized.

Three weeks ago the company reported a rise in the number of subscribers and a 47 percent jump in income from data and content and that revenue rose 7.2 percent to $392 million. Net profit rose more than expected in the third quarter, boosted by cost cuts and sharply higher revenue from data and content services. Israel's largest mobile phone operator posted net profit of $67 million, or 68 cents per diluted share, compared with $33 million or 34 cents a share a year earlier.

With a PE of 15.50 and a dividend yield of 8.5%, the stock is an attractive play for investors who want some exposure to the Israeli domestic economy.

But it's important to keep in mind that with cellular penetration of 120% and potential surging marketing costs just to keep existing customers, let alone trying to get new ones, Cellcom may be in for some volatility.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position in any stock mentioned as of 11/29/07.