Bezeq President and CEO Ilan Biran today spoke about the investments that cellular companies are already making in third-generation services.

He believes it will take time until the 3G services kick off.

Commenting on this he said that an investment done three to four years too early is similar to another made three to four years too late.

Biran said that Bezeq subsidiary Pele-Phone Communications is today forming plans for the medium term, but he hasn't seen them yet. The strategic plan is scheduled to be presented to the board of directors at the end of the month.

Biran stated that CEO Yigal Bar-Yossef's replacement by Jacob Gelbard could have been handled more professionally.

Biran believes that the cellular sector is beset with problems, not the least of which is the outrageous demand curve.

Bezeq CFO Oren Lieder said that Pele-Phone does have problems but they are not as severe as has been reported. He said Pele-Phone's situation very much depends on the developments in the sector.

Biran said that Bezeq is more pessimistic than others about the communications market, and he expects problems in the development of this sector. The trend is clear, he said, with tough competition rendering expectations of short-term profits unrealistic.

Biran, expressing concern, said that Pele-Phone's situation needs to improve substantially. He added that Pele-Phone's experienced management is currently making strategic and operating plans to cover the coming three years.