Yes to raise monthly price of basic package to NIS 210

Satellite television service provider Yes will be raising the price of its basic service package on April 1 by about 3%, TheMarker has learned. This will bump up the cost of the basic package from NIS 204 a month to NIS 210 for subscribers without a contract commitment for a specific period of time. The price increase will affect about 18,000 subscribers, or only about 3% of the company's customers, but it will disproportionately affect less well-to-do subscribers who have not signed on for premium channels and do not have a contract for a specified duration.

The move by Yes is part of an ongoing trend by multi-channel television service providers to rise the price tag on their basic packages, which are supposed to be the cheapest options for the public. Exactly a year ago, Yes raised the price of its basic package by 2.5% and six months previously, in October of 2008, Yes imposed a nearly 3% increase on basic service. Cable television provider HOT also recently updated its customer fees, raising its basic digital cable service package by 2% in February. The firm also adjusts fees on it video on demand service once a year.

Primarily due to the relatively new option that viewers have of receiving 5 television channels at no additional cost with the purchase of a DTT receiver, HOT and Yes have been offering attractively priced premium television packages, which at times are cheaper than the basic service option. In return, however, HOT and Yes require a 24-month commitment, which involves penalties of hundreds of shekels for early cancellation. Basic service subscribers are not required to commit to any specific time period, and therefore have the option of canceling without penalty.

The Cable and Satellite Council, which overseas both Yes and HOT, has, along with the Communications Ministry, examined oversight of the prices charged for basic subscriber packages, but has so far opted not to intervene in subscription fees. The Israeli multi-channel market has two service providers. Various government committees have noted that television service in Israel is among the most expensive in the world.