The board of directors of Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) is due to meet this evening to decide on whether the company should go into television broadcasting. CEO Nir Sztern, is promoting the idea of entering this field gradually, in response to fears expressed by directors over the profitability of the venture, particularly in the light of the fact that it relies on Idan Plus, which is meant to serve as the broadcasting platform to which additional content channels will be added.

The details of the proposal are not known, and Cellcom has kept a religious silence over them. However, "Globes" has already reported that the company has signed a content agreement with RGE, which will be its television content integrator.

In the past two years, Cellcom has looking intensively at the possibility of entering television over the Internet, and even signed an agreement with Ericsson to supply a broadcasting platform. Basic channels will be transmitted via digital terrestrial television service Idan Plus, while additional content, such as a sports channel, will be via Internet.

Cellcom has set up a special department for the venture. Sztern has been unequivocal about going ahead it, but some directors have pointed to problems liable to arise on the technology side.

If the board does approve the move, Cellcom will bring about far-reaching change in the Israeli television market. There is no doubt that Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) will follow suit. The companies have already talked of cutting television prices drastically, to around NIS 100 monthly for a package.

Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2013

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