Mobile carrier Golan Telecom Ltd. has obtained permission from the Ministry of Communications to conduct a technology trial on the Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) network as part of the company's plan to enter the landline market.
As "Globes" was the first to report, Golan Telecom wants to examine whether it is worthwhile entering the landline market in view of the consolidation of telecommunications groups in the Israeli market, and the Ministry of Communications' policy of allowing every carrier to offer a comprehensive services plan. Golan Telecom is a mobile carrier that also provides international calls, and faces four telecommunications groups: Bezeq and its mobile subsidiary Pelephone Communications Ltd.; Hot Telecommunication Systems Ltd. (TASE: HOT.B1); Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL); and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR).
When the Ministry of Communications' policy is implemented, the four groups will provide telephony, mobile, Internet, and television services, and will be able to offer subscribers better deals. Golan Telecom realizes that it is in an inferior position under these circumstances, and it therefore decided to conduct a landline test.
Golan Telecom owner Michael Golan and his partner Xavier Niel, the owner of French communications group Free, started out in the telephony business, and are now one of the biggest providers of comprehensive telecommunications services in France. Golan Telecom therefore has access to television content and extensive knowhow about the potential of the landline market.
Golan Telecom will carry out the test on Bezeq's ADSL and VDSL networks for the provision of Internet and television services. It will also provide video-on-demand (VOD) services in the trial, with the participation of about 100 customers. The company will not charge customers for the technology trial, which is usually conducted among employees.
Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2013
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