Hot Cable Systems Media Ltd. (TASE: HOT) is mulling entering the Internet services and international calls sectors. Even as it waits for Ministry of Communications' licenses for these services, the company is examining the establishment of its own Internet services and international calls services, either independently or via an acquisition.
The review is currently only internal, but HOT CEO Herzl Ozer has already taken the decision in principle to examine the two options and to make the best decision in the interests of the company.
If HOT decides to set up its own Internet services and international calls services, it means the acquisition of international transmission capability via the Nautilus undersea cable or the acquisition of capacity from one of the Internet services providers that has long-term contracts with the cable owner.
The advantage in acquiring an existing business is the shorter time to market and the obtaining of an existing customer base. However, there are few acquisition opportunities on the market. Among these are independent communications providers Xfone Inc. (AMEX:XFN; TASE:XFN) and 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC), which do not belong to a telecommunications group.
Published by Globes [online], Israel business news - www.globes-online.com - on March 23, 2009
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