Mobile operator Cellcom Israel has confirmed it is to enter the OTT TV market. Nir Sztern, the company’s Chief Executive Officer, said that entering a new and penetrated market would 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,” he stated.
Gilad Erdan, the Israeli Minister of Communications, congratulated Cellcom Israel on the initiative, which he said would promote competition in the multi-channel television field in Israel, and would 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,” he confirmed.
Cellcom Israel has some 3.049 million subscribers (as at March 31, 2014).