Fiber optic venture seeks TV license

Sources inform ”Globes” that the fiber optics venture last week applied for a television broadcasting license from Minister of Communications Gilad Erdan. The venture wants to transmit digital terrestrial television (DTT) service over its network to attract customers and compete as a DTT provider.

The venture, which is laying fiber optics for high-speed Internet over Israel Electric Corporation’s (IEC) (TASE: ELEC.B22) network, to compete against Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and Hot Telecommunication Systems Ltd. (TASE: HOT.B1) will begin deployments in November.

The application for DTT broadcasts was submitted to Erdan and the Ministry of Communications legal adviser because it is an extraordinary application which requires a broadcasting license. If the venture receives the license, it would support Erdan’s plan to expand DTT service.

Last week, ViaEuropa AB CEO Jonas Birgersson, the man who makes the important decisions about the fiber optic venture, visited Israel to meet Erdan and executives from mobile carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) to present the venture to them.

He raised the issue of DTT broadcasts, which currently has six stations – Israel Broadcasting Authority’s Channel 1 and 33, education station Channel 23, commercial stations Channel 10 and 22, and the Knesset Channel – and was that the subject would be reviewed, probably as a separate matter, because the Ministry of Communications does not want to delay granting a license to the venture, which is in the advanced stages.

The sources added that, Birgersson also presented ViaEuropa’s model in Sweden, giving the impression that its prices will be low and competitive.

Published by Globes [online], Israel business news – www.globes-online.com – on August 11, 2013