Patrick Drahi, who owns 33% of Hot Cable Systems Media Ltd. (TASE: HOT), is taking up the reins at the company. Sources inform ''Globes'' that during a visit of several days to Israel last week, he held a round of tours of the company and meetings with its management. He also visited some HOT call centers to obtain an in-depth view of its activity.
From the visit, it emerges that Drahi believes that there is considerable room for improvement in HOT's conduct in several fields.
Each of HOT's VPs were asked to make a presentation in English to Drahi on their area of responsibility. During the visit, it was possible to understand that Drahi believes that HOT's administrative and general expenses are too high, and that spending on procurements, including set-top-boxes, should be slashed.
Various sources said that Drahi believes that HOT bought set-top-boxes at triple the accepted price in the industry, and in his other companies.
Drahi also asserted that spending on content was not sufficiently economical and efficient; in other words, he hinted that HOT is airing too many channels. He also suggested that, if possible, the number of channels jointly aired with satellite broadcaster YES ought to be increased, if the regulator agrees.
Drahi's visit at HOT was his first major visit at the company. The impression among HOT's managers following the visit is that Drahi will be a the main professional influence at HOT, and that he brings a wealth of experience and know-how about the cable industry. The visit also raised fears about the changes that he will try to implement.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2009
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