Communications Ministry ends split between the supplier and infrastructure in the Internet market

A week after returning to the Ministry of Communications, the current Minister, Yoaz Handel, signed a reform that put an end to the split between the supplier and the infrastructure in the Internet market. It means for consumers to create one and only one writer to purchase the services as well as to troubleshoot.
The reform, which will take effect at the beginning of next year, is intended to put an end to the phenomenon of "throwing responsibility" between ISPs and infrastructure owners over malfunctions in an effort to raise the standard of service in the industry. It is also expected to minimize the phenomenon of dormant subscribers, who are estimated to pay about NIS 50 million in surplus, for an unused product. The Ministry of Communications, managed by Liran Avishar Ben Horin, notes that in the past year, the ministry has led to a reduction of about 46% of subscribers who suffered from the phenomenon.
The process of moving to the new regulation in the market is expected to be gradual while strengthening the wholesale market mechanism so that competition in the industry will be maintained after the abolition of the separation between infrastructure and supplier. Mechanisms will also be created that will ensure that both small players and new players will be able to operate effectively and competitively with the infrastructure owners and thus be able to continue marketing the service.
The split of the Internet market between provider and infrastructure began about 20 years ago as part of the state's efforts to encourage competition in the communications market, which at the time relied mainly on Bezeq's infrastructure. Last October, the ministry issued a hearing regarding the cancellation of the split, after which it formulated the outline approved this morning by Handel.
As part of the outline, the companies that own the Internet infrastructure will be required to present to the Ministry of Communications off-the-shelf agreements with the "suppliers" companies, which will include performance indices and defined and agreed compensation mechanisms. Existing customers who wish to continue consuming the Internet services in a split manner will be allowed to do so, but new customers will only join the unified service.
The Ministry of Communications will review the market trend at the end of one year from the date of implementation of the reform and, based on the findings, will consider future measures in favor of implementing the reform and improving consumer service.
"This is one of the first decisions because its impact on the pockets of Israeli citizens and the service they will receive is enormous - the Internet is one product," Communications Minister Handel explained this morning. The firm's director general, Avishar Ben-Horin, added: "The split, which was important at the time, has become a source of turmoil, a proliferation of dormant subscribers, and damage to the service that consumers receive."