Tel Aviv: Israel's Communications Ministry increased competition and “significantly and immediately” reduced prices for using the infrastructure of Bezeq (Israel's national telephone company).
The ministry reduced the companies' “passive infrastructure” usage fee for Bezeq from 446 shekels ($122) per kilometer per month to just 250 shekels (US$70) per kilometer per month, a reduction of about 44 percent.
Why were the prices reduced?
This is the first cut in the series, and will remain in effect until June 2025, when the updated prices will take effect. The price cut will be effective from April 1, 2024.
Bezeq is the only company in Israel that owns the physical communications infrastructure (channels, pipes, towers, poles, etc.) throughout the State of Israel.
The terms of access to Bezeq's physical infrastructure directly affect the ability and incentive of other telecommunications companies to establish independent infrastructure and compete with Bezeq in providing Internet services to the public.
Benefits of price reduction
In the current period, the State of Israel is spreading its length and breadth with advanced networks, so especially in this period it is important to reduce the rates for the use of Bezeq's idle infrastructure significantly and as quickly as possible.
Such cuts are expected to increase the incentive for telecommunications companies to extend the retirement of their fiber infrastructure and promote competition, which will impact infrastructure quality and consumer well-being in Israel. Quality and price to last for many years to come.