Cellcom, Israel's largest mobile phone operator, on 17th June has announced that it will offer television services over the internet as it seeks to look for new sources of revenue amid heavy competition in the cell phone market.
The move comes as Israel's Communications Ministry has encouraged Cellcom and its chief rival, Partner Communications, to enter the so-called Over the Top TV market to provide competition and lower costs to consumers.
Currently, Israel has two providers of multi-channel TV - cable company HOT and YES, the digital satellite unit of Bezeq Israel Telecom.
A month ago, Cellcom reported a 70% jump in first-quarter profit, although its subscriber base fell 3.7% over the prior year to 3.049 million.
Israel's mobile phone industry was shaken up in 2012 with the entry of six new operators, sparking a price war that led to steep drops in subscribers, revenue and profit at Cellcom, Partner and Bezeq unit Pelephone.
Communications Minister Gilad Erdan welcomed Cellcom's decision to enter the OTT TV field, saying it will promote competition in the sector and "facilitate the reduction of the high price currently paid by the Israeli consumer for television services."
Source: http://cablequest.org/news/new-media/item/5242-cq-cellcom-to-offer-television-service-over-internet.html
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