HOT Telecommunication Systems Ltd. (TASE: HOT) is readying to set up a new television venture to challenge cable carriers Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), which are planning to offer Internet Protocol television (IPTV) services shortly. Sources inform ''Globes'' that HOT is in talks with several manufacturers to offer a competing television solution, which is scheduled for launch in September.
HOT declined to comment on the report.
HOT's television venture is not new in terms of the company's preparations. In the past, when Partner launched its Orange Time venture to enter television, HOT prepared in advance, including engineering preparations, for the move. But Orange Time never materialized, and HOT has not felt any threat since then.
Now that it is clear that the market is headed for competition between four telecommunications groups, and that Partner and Cellcom will compete in television, and have even announced special plans for less than NIS 100 a month, HOT has decided to get ready.
HOT has cable and telephony infrastructures, a mobile network, and content agreements (with all that that implies), so it will be easier for it to get an IPTV venture on the air which will include interactivity via links to social networks, video libraries (which the company already has), and other advanced services, which will be integrated with its new mobile network, HOT Mobile Ltd.
HOT's share price fell 0.4% in morning trading today to NIS 30.70, giving a market cap of NIS 2.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 2, 2012
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