The Mordechai committee of the Ministry of Communications is proposing a revolution in the Israeli television market, and the main beneficiaries will be the commercial television franchisees. Ministry of Communications director general Mordechai Mordechai chairs the committee, which today released its recommendations.
The committee recommends Channel 10 franchisee, Israel 10 Ltd. be allowed to switch to a license either in January 2012 or January 2014. It recommends that Channel 2 franchisees Keshet Broadcasting Ltd. and Reshet Television Ltd. be allowed to switch to a license either in January 2012 or January 2015, when their franchises expire. In all cases, the licenses will be for 15 years, with a 15-year option to extend.
The Mordechai committee recommends awarding a broadcast license for any company that meets the threshold conditions, without a tender procedure. A license-holder will have the right to use a broadcast channel and its commercial trademark. The programming will be distributed by the Digital Terrestrial Television (DTT) network of the Second Television and Radio Broadcasting Authority, by the satellite and cable broadcasting companies.
Switching to a license method will also affect broadcasters' royalties to the government. The committee recommends that license-holders not pay royalties, and that the franchisees' obligation to pay royalties terminate upon the switchover to licensing.
The main recommendations of the Mordechai committee include the following:
- Applying the same regulations and obligations of the Second Television and Radio Broadcasting Authority Law for the franchisees on future license-holders;
- Examination of the entry of additional channels to the DTT network in 2012;
- Postpone advertising on cable and satellite stations until January 2012.
Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2009
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