Ilan Biran, CEO of state-owned phone company Bezeq, told TheMarker that over years mistakes were made at Pele-Phone Communications, and that it is clear Pele-Phone could have had much better results.

Pele-Phone lost NIS 254 million in the first months of 2001.

Biran said that had Bezeq not invested in cellular communications and multi-channel television until now, it would have had to enter these fields now. Biran therefore does not regard the Pele-Phone and satellite TV firm YES investments as mistakes.

He said that the Pele-Phone management has issued a restructuring plan and that is working well so far. Biran said that a big challenge lies ahead for Pele-Phone and YES given the tough competition in their respective markets.

Biran said that the agreement with Shamrock puts Bezeq in a good situation. Each company owns 50% in Pele-Phone and each quarter Bezeq can decide whether to increase its investment in Pele-Phone or to exit.

If you liked this article you might like

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Yes recruitment rate down to 6,000 a month

Yes recruitment rate down to 6,000 a month

Cadence to invest in Israeli startups

Cadence to invest in Israeli startups

Court grants Mentergy 40-day stay of proceedings

Court grants Mentergy 40-day stay of proceedings

Leader & Co sees Discount shifting to profit in Q3

Leader & Co sees Discount shifting to profit in Q3