Yesterday evening, the board of Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) approved a pilot program with a view to entering the television market. The pilot is intended to test the Idan Plus digital terrestrial television system and its reliability as part of the television service.
During the pilot scheme, Cellcom will examine where the Idan Plus system operates well and where it does not, and how far its set-top box is sensitive to disturbances. This is because, besides the reception problems, frequency interference can be caused by nearby electrical devices, a problem that is more difficult to overcome. The company is therefore being cautious, and trying to see how these problems can be neutralized.
According to market sources, Cellcom, and shortly Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) too, are entering the world of television because the Antitrust Authority is moving in the direction of approving a merger between Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and satellite broadcaster Yes.
As negotiations on setting up the wholesale telecommunications market advance, and as bandwidth in telecommunications infrastructures increases so that it is not a technological barrier for anyone wishing to transmit television via the Internet, the existing situation only favors HOT Telecommunication Systems Ltd. (TASE: HOT), the only company allowed to provide a triple package including television, Internet, and telephony. The result is that competition is actually harmed by Bezeq and Yes not merging. In any event, such a amerger will require permission from the Ministry of Communications.
Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2013
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