Sources inform ''Globes'' that the Ministry of Communications will not allow YES satellite broadcaster to conduct a market trial for video-on-demand (VOD) services, which will compete against Hot Cable Systems Media Ltd. (TASE: HOT). The ministry notified YES that, for legal reasons, the test was impossible, and that the company must wait for a hearing on the case. The company must also wait for subsequent legislation before it will be allowed, if at all, to provide VOD service.
Minister of Communications Ariel Atias said, “Reports claiming that we’ve reached a deal allowing YES to carry out a market trial for VOD service are incorrect. Moreover, I notified YES CEO Ron Eilon that because the ministry’s legal department opposes a full market trial without a change in the law, I cannot approve it until the law is changed.”
Sources at the Ministry of Communications said yesterday that MKs have pulled a private members bill that would have allowed Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) to provide VOD service. The sources said that the MKs did not withdraw the bill because Atias promised to approve the market trial, but because they realized that they lacked a majority for the bill. This is especially true because the ministry is dealing with the matter.
The Ministry of Communications yesterday published a draft of its VOD service licensing policy, which implies that if Bezeq wants YES to provide VOD service over Bezeq’s infrastructure, Bezeq will have to open its infrastructure to all service providers wanting to provide VOD service. HOT will not have to do this so long as it does not want to provide VOD service over its IP network.
Published by Globes [online], Israel business news - www.globes.co.il - on January 15, 2007
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