Cellcom Israel has announced that it will enter the field of television services over the internet (or OTT TV).
Nir Sztern, the Company’s Chief Executive Officer, explains: “the Company will enter a new line of business offering OTT TV services. Entering a new and penetrated market will require investment and additional operating expenses in order to yield future revenues. In line with the Israeli Ministry of Communication’s policy to encourage competition in the Israeli television market, the Company’s OTT TV solution will allow the Company to offer an attractive alternative to the traditional cable and satellite television services currently offered in Israel by the Hot group and the Bezeq group. The Company’s OTT TV services are synergetic and complementary to the Company’s core business and shall help in retention of customers and strengthen the Company’s position as a leading Israeli Communications group. ”
Mr. Gilad Erdan, the Israeli Minister of Communications, adds: “I congratulate Cellcom Israel on its decision. This step will promote the competition in the multi-channel television field in Israel, and will facilitate the reduction of the high price currently paid by the Israeli consumer for television services. We will assist as much as possible in encouraging and promoting the competition in that field.” For additional see the Company’s annual report for the year ended December 31, 2013 on Form 20-F dated March 6, 2014 under “Item 3. Key Information – D. Risk Factors – Our investment in new businesses involves many risks”.