Third TV company to compete with Hot and Yes?
Communications Ministry seeks to establish third commercial television company that will drive down monthly satellite, cable subscriber fees
The cellular revolution moves to cable TV? Communications Minister Moshe Kahlon has said in the past that the monthly subscriber fees for satellite and cable TV will decrease and now it seems he is keeping his word.
Ynet learned Wednesday that the Communications Ministry is working on the establishment of a third broadcasting network that will operate on DTT infrastructure, and compete with cable and satellite companies HOT and Yes. The goal: Cutting their monthly fees by at least 50%.
DTT, also known as IDAN+ is a digital terrestrial transmission network, which allows users who choose not to subscribe to any of the cable companies to receive Israel’s free-to-air channels – 1, 2, 10, 33 and 99.
In order to carry out the initiative, the state plans to privatize IDAN+, which is currently run by The Second Authority for Television and Radio. The company that will win the tender will be obliged to provide the 18 channels that are included in the service free of charge, but will have the possibility of adding additional channels for a fee.
In addition, the company that will purchase the infrastructure will immediately receive a clientele base of 250,000 subscribers who are already receiving DTT transmissions, and have made a one time payment of NIS 300-500 for the cable box.
The Communications Ministry is planning to draft a bill to be passed in the upcoming months, without waiting for the regulation law.
Sources privy to the initiative say Minister Kahlon is determined to drive down prices in the Television market. Therefore, the ministry is simultaneously acting to oblige cable and satellite companies to provide consumers with a narrow package of channels.
The Communications Ministry and the Knesset's Finance Committee considered several solutions to offset the potential financial damage and create a source of income for the broadcasting bodies, including commercials. However, eventually they opted for privatizing the apparatus.
