The Ministry of Communications has denied Hot Cable Systems Media Ltd's application (TASE: HOT) for an Internet service provider (ISP) license, after the company failed to submit a business plan as requested. HOT will therefore have to re-submit the application, which will delay the process by quite a few weeks. The ministry notified HOT to this effect today, with copies sent to various ministry departments.
There has been considerable debate within the Ministry of Communications about HOT's ISP application, and there are deep differences of opinion on what terms to grant a license. Both NetVision Ltd. (TASE: NTSN) and 012 Smile Telecom Ltd. are waging a bitter struggle for the ministry to impose strict restrictions on HOT to prevent the company from using its infrastructure to win over their customers by offering services that the two service providers cannot match.
A Ministry of Communications hearing on the issue sharpened the dispute within it, and resulted in a new request for HOT, Smile, and NetVision to appear and present their positions to the ministry's licensing committee, which is due to issue the ISP license.
At the same time, the ministry asked HOT to present its business plan so that the ministry could review it to find out the company's intentions and how it plans to penetrate the market. It is not clear why HOT has not sent its business plan to the ministry, which in today's unusual step notified the company that its ISP license application has been cancelled and that the company have to submit a new one.
Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2010
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