Netanyahu opposes Cellcom-Golan Telecom deal

Golan was one of the new players to enter the market following reforms that lead to dramatic drops in the price of cellular services.

By
November 22, 2015 20:55
1 minute read.
Israeli espionage

Shadowy figure uses cell phone (illustrative). (photo credit: INGIMAGE)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Prime minister Benjamin Netanyahu will oppose the proposed sale of Golan Telecom to Cellcom, channel 2 reported Sunday, citing comments made in closed-door meetings.

Netanyahu does not have the authority to approve or block a deal as prime minister, but he currently holds the communications ministry portfolio, which has some power to intervene. Netanyahu also holds the economy portfolio,  which houses the independent anti-trust authority, which could block the sale as well.  There is currently no commissioner leading the anti-trust authority.

Be the first to know - Join our Facebook page.


The previous commissioner, David Gilo, stepped down in August in protest of a plan to regulate Israel's natural gas deal, which Netanyahu backed.

Finance minister Moshe Kahlon has said that his ministry, too, has the power to block the deal.

Some market analysts believe that the telecom market in Israel is too crowded, and that one way or another, it will consolidate.

Golan was one of the new players to enter the market following reforms Kahlon pushed through when he was communications minister. The reforms led to dramatic drops in the price of cellular services, to the delight of consumers and the horror of investors who held stock in Cellcom, Orange and Pelephone, the legacy companies they dominated the market before.

Officials opposing the sale fear that it would decrease the intense competition, and lead to a jump in cellular prices.



According to Channel 2, Netanyahu said the Michael Golan, the company's CEO, had not lived up to his obligations. That decision, they said, left the deal effectively dead.

Related Content

Workers strike outside of the Teva building in Jerusalem, December 2017
December 18, 2017
Workers make explosive threats as massive Teva layoff strikes continue

By MAX SCHINDLER