Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) launched its television service today at a special press conference attended by Minister of Communications Gilad Erdan.
Cellcom also notified the Tel Aviv Stock Exchange (TASE) regarding the launch of Cellcom TV, an Internet television service that includes a basic package for NIS 99 monthly for television channels and Video on Demand (VOD) services. The service is available from today. The mobile carrier is also offering TV and unlimited calls on three mobile lines, plus Internet, for NIS 199 monthly.
In addition to the Idan Plus digital TV channels, Cellcom offers movie, TV series (including Israeli series), and live performance marathon channels. The new device allows instant recording, and has a recommendation system as well, where, alongside a recording, users can view social network connections too.
“I am excited, like all of Israel that waited for this day,” said Erdan. “One of my goals was to reach this moment in which multi-channel television competition in Israel begins. The citizens of Israel pay too much for television. The Hot-Yes duopoly must be fought by increasing competition. During my tenure, I succeeded in forcing Hot and Yes to offer cheaper basic packages, but I said that was just treating the symptoms. Despite the fact that the law forced Hot and Yes to sell a cheaper package, the companies did everything they could to conceal this discounted package from the public, and the public did not know about its existence at all, and this is the nature of a duopoly. Therefore, the people at the Ministry of Communications acted to make it possible for new competitors to enter, in order to ensure cheaper infrastructure usage fees.”
Erdan said, “The measures created conditions for a new platform to enter, and I am happy that Cellcom is launching its multi-channel product. As someone who has tried its service, I can say that this is real news for the consumer. This is real news for competition, and we will see service fees drop by 20-30%. The public wants to consume the content wherever it wants, and at a cheaper price. As a government representative, one must strive to expand competition, and this step today is a big step toward that end. I hope that new players will follow Cellcom, and enter the market.”
Cellcom CEO Nir Sztern spoke of the “revolution” in the communications market, and said: “We are entering television because there is a business model, and because we want to preserve our core business. We are seeing more and more communications companies that are taking their first steps into the world of television, and they recognize that there is growth potential. The more products there are for the consumer, the greater his loyalty. Customers feel that they are paying a lot and not getting enough. Satisfaction is mediocre or less. Over the last two years we have conducted dozens of surveys, and focus groups, and we asked ourselves what television we want to see, and we want to make a dream come true.”
Sztern said that most of the content will be broadcast in HD, and Cellcom will offer trailers for movies: “The most basic thing is for it to be possible to watch trailers for movies. We will have all the Israeli classics alongside children’s movies. The service loads in seconds. You can stop in the middle, add to favorites, fast forward and rewind, and more… and all this will be for mobile as well.”
Cellcom chairman Ami Erel added: “We learned what the customer wants and what not, what is important to him, and what he is forced to buy, and much he is willing to pay, and this is based on years of thorough work. From my perspective, this is a revolutionary package that is not comparable to anything else. This is the first service that integrates television and Internet and everyone will see that this is seamless integration that opens the door for packages that are tailored for the customer, at a reasonable price, with an easy-to-read bill, with no surprises. This morning, you will see what 21st century television is. The audience will see what the meaning of a new viewing experience is. Thanks to Minister Erdan, and the Ministry of Communications, and the Antitrust Authority, and the controlling shareholders who supported this process.”
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2014
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