Israel’s communications ministry has urged more competitive pricing in the market in recent weeks, and is pioneering the launch of over-the-top TV in the country, with the government pushing both Cellcom and its main rival Partner Communications to launch the service.
“Entering a new and penetrated market will require investment and additional operating expenses in order to yield future revenues,” said Cellcom CEO Nir Sztern. “The company’s OTT TV services are synergistic and complimentary to the company’s core business and shall help in retention of customers.”
Israel’s mobile industry saw the entrance of six new players in 2012, which led to a price war in the market. Cellcom, Partner and Bezeq-owned Pelephone saw a significant drop in subscribers, revenues and profits, leading to the companies seeking new ways to bolster growth.
At present, Israel has two main providers of television, which includes cable company HOT and Bezeq Israeli Telecoms’ satellite offering YES.
Communications minister Gilad Erdan welcomed Cellcom’s decision to enter the OTT TV sector, stating that the move will promote competition in the market and reduce prices for consumers.
