Immediate Report - Update on the extension of the roll-out period of the migration plan of yes
Bezeq – The Israeli Telecommunications Corp. Ltd.
(the “Company”)
Attn.
Israel Securities Authority
Tel Aviv Stock Exchange Ltd.
Immediate Report - Update on the extension of the roll-out period of the migration plan of yes — from satellite to Internet-based broadcasts (OTT)
Further to section 5.17.1 of the Description of Company Operations in the Company’s 2024 Periodic Report dated March 12, 2025 concerning the gradual migration plan from satellite to over-the-top (OTT) Internet broadcasts (the “Migration Plan”) being implemented by the subsidiary yes Television & Communication Services Ltd. (“yes”), the Company hereby reports that yes has resolved to continue its satellite broadcasts until December 31, 2028. From February 2026, satellite service will be provided in a limited and targeted format to relevant customers, including institutional customers, subject to:
- Execution of an agreement (currently under negotiation) between yes and Spacecom for consideration that is not material to the Company, covering the period from March 1, 2026 until December 31, 2028 (the “Agreement”); and
- For the launch and positioning of a new satellite at the scheduled times relating thereto.
Main principles under negotiation with Spacecom:
- yes will lease three space segments from Spacecom on the new satellite, and Spacecom will declare in the Agreement that it has the right to lease those segments to yes from the holder of rights in the new satellite.
- Spacecom will be entitled to terminate the Agreement (other than for breach) at the demand of the satellite rights-holder, generally without compensation.
Currently, more than 85% of yes subscribers use the yes+ and STING+ services delivered via the Internet (some of these customers also continue to use the satellite service). Extending the Migration Plan is therefore expected to positively impact yes’s results.
The signing of the Agreement and the continuation of limited satellite broadcasts after February 2026 constitute forward-looking information under the Securities Law, 1968. Such information is based, inter alia, on the successful completion of negotiations on the Agreement as described above, execution of the Agreement, successful launch, positioning, and operation of the new satellite, the relevant regulatory and licensing framework for yes, the exercise of rights by the satellite rights-holder, availability of required resources and inputs for continuing the migration process, and prevailing market conditions. The forecasts, preparations, objectives, and format described herein may not materialize, or may materialize in a materially different manner, due to (among other factors) failure to conclude the negotiations in the described form or at all, delays or failure in launching or positioning the new satellite, regulatory or other limitations imposed on yes, non-receipt of required consents or their termination, changes in demand for the limited satellite format, and other sector-related changes.
Yours sincerely,
“Bezeq” The Israel Telecommunication Corp Limited
The above information constitutes a translation of the Immediate Report published by the Company. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law and represents the binding version and the only one having legal effect. This translation was prepared for convenience purposes only.