UBS has downgraded its recommendation for Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) from “Buy” to “Neutral” due to regulatory uncertainty. UBS analyst Roni Biran says there could be a delay in releasing Bezeq from the shackles of structural separation as well as a delay in its merger with Yes, and this creates uncertainty over the future of the company.

Biran adds that the entry of Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) to the TV market has resulted in a fierce response from rivals in the mobile phone market and this will hit profitability over the next year and affect the results of Bezeq’s mobile carrier unit Pelephone Communications Ltd..