Announcing the move, Cellcom, which already counts 3.05 million phone subscribers, said its move into OTT will allow it to offer an alternative to the traditional cable and satellite television services offered in Israel by the Hot group and the Bezeq group.
“The Company’s OTT TV services are synergetic and complementary to the company’s core business and shall help in retention of customers and strengthen the company’s position as a leading Israeli communications group,” said Cellcom CEO Nir Sztern.
Cellcom said that moving into the OTT space will require investment and additional operating expenses in order to yield future revenues.
The move was also welcomed by Israeli Minister of Communications, Gilad Erdan, who said: “This step will promote the competition in the multi-channel television field in Israel, and will facilitate the reduction of the high price currently paid by the Israeli consumer for television services.”
Cellcom was set up in 1994 and claims to be Israel’s largest cellular provider.