Hot: Israeli regulator cannot prevent TV price hikes

Yifat Ben Hai Segev
Yifat Ben Hai Segev

The cable company's lawyers are challenging the council chair’s decision to freeze its planned price increases.

Hot Telecommunications Systems Ltd. has challenged the decision of Israel's Council for Cable TV and Satellite Broadcasting chair Dr. Yifat Ben Hai Segev to freeze proposed price hikes by the cable provider and its satellite rival Yes. In a letter filed by its attorneys, the company claims extensive damages will be caused by the decision.

The letter from Hot’s attorneys at Herzog, Fox, & Ne’eman further claimed the council had no legal authority to delay the updated prices, and that the company’s license does not require the pre-approval of any increase in the rates.

Hot also claimed that, according to its license, it must notify the council on the timetable of the planned change, and the council may only intervene with proper cause. They said only the council chair and the director-general of the Ministry of Communications can receive a joint decision to halt price changes or the communications minister after a council session which is why Ben Hai Segev did not have the authority to delay the hikes until after a hearing or the antitrust authority investigates allegations of price fixing rendering her decision unenforceable.

The letter then countered the council chair’s claim of discrimination among customers for the price hikes and collusion with Yes which is increasing its VOD service charge while Hot is raising its prices for all customers not currently partaking in promotion pricing.

Despite rejecting the discrimination claim, Hot has notified the council that it will increase its prices by 4.2% for its triple-bundle subscribers, 4.8% for its double-bundle customers, and 6% for its television consumers.

Given the circumstances, Hot believes the discrimination charge cannot be used as a reason to delay its proposed hikes or a council hearing on the matter. The cable company also rejects the decision to delay the price increases until an inquiry is conducted into the alleged collusion between Hot and Yes.

The council responded: “The council chair worked within her authority, as defined by section 45.3 of the Hot license, in which it is clearly written that the council chair and the communications ministry director-general have the authority to order Hot to cancel promotional pricing.

“It should be emphasized that the council did not order Hot and Yes to cancel the planned price hikes, but only to freeze them, as it intended to holder a comprehensive hearing at the council, during which the antitrust regulator will present his position. The council chair categorically rejects Hot’s attempt to force the regulator into a specific timetable or procedure.”

Published by Globes [online], Israel business news - www.globes-online.com - on November 29, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Yifat Ben Hai Segev
Yifat Ben Hai Segev
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