Sources inform ''Globes'' that Antitrust Authority director general Ronit Kan demands that Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) guarantee that it will not eliminate its satellite platform as part of the acquisition of a majority holding in DBS Satellite Services Ltd., which owns satellite broadcaster YES. In other words, Bezeq will keep the satellite platform even if it begins to provide IPTV service through its next-generation-network (NGN) that is now under construction.
Bezeq currently owns 49.8% of YES and wants to acquire a majority holding of at least 58% in the company.
Kan set very strict conditions for content and for ensuring competition between different platforms. These conditions include a ban on cross-subsidization and separation of content aired by YES and content provided via IPTV.
The Antitrust Authority decided on the terms of Bezeq-YES merger at the order of the Restraint on Trade Tribunal.
Bezeq believes that the Antitrust Authority's conditions are extreme, and will be difficult to implement by both YES and by Bezeq with a role in both platforms. Bezeq also rejects the Antitrust Authority's demand that it allow other operators free use of its NGN.
Published by Globes [online], Israel business news - www.globes-online.com - on June 25, 2008
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