Minister of Communications Gilad Erdan is planning a reform to increase competition in the multichannel television market. He has drawn up a new "narrow plan", which Hot Telecommunication Systems Ltd. (TASE: HOT.B1) and DBS Satellite Services (1998) Ltd. (Yes) will be required to offer subscribers at NIS 120 per month. Erdan wrote on his Facebook page today that he would submit his proposal to the Ministry of Finance.
"Although I am only a short time in the job, this is the most urgent thing, in my opinion: to stop the farce," Erdan wrote. "After marathon talks, we were able to prepare a proposal, which I intend to submit to the Ministry of Finance today: a new basic plan. The new basic plan will cost NIS 120 (half the current price), and will have a range of options to choose from on the basis of the viewer's needs, rather than at the consideration and profit of the companies. The party is over."
Erdan told Channel 2's "The world this morning" program that his goal in this term was to break the Yes-Hot duopoly. "There is no need to pity cable and satellite television. They are profitable, very profitable. It is necessary to compel them to offer a wider range of fairer basic plans."
Erdan added, "This is a first step, because so long as this duopoly exists, it's not enough. That is why my goal during this term is create competition against them, either through Idan Plus, or further reform in the wholesale market, which will enable more companies to offer plans through Bezeq and Hot's infrastructures.
"The basic plan in Israel is one of the broadest in the world; scores of stations that no one watches, but which they must buy, paying a lot of money unnecessarily. NIS 250 a month is a price that exists in no Western country. This is a duopoly using its power."
Published by Globes [online], Israel business news - www.globes-online.com - on April 25, 2013
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