high fine of NIS 6 million imposed on Hot after it thwarted the wholesale market reform

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by Ifi Reporter Category:Communication Jan 17, 2021

The Ministry of Communications imposes a high fine on Hot after it thwarted the wholesale market reform. The ministry imposed an unusual fine of NIS 6 million on the cable company. The fine was imposed after the Ministry of Communications, according to the Ministry of Communications, prevented the implementation of the reform for about a year, and made it difficult for Internet providers without infrastructure to lease infrastructure segments and market them to consumers.
The wholesale market reform required Bezeq and Hot to allow competitors to ride on their infrastructure. The reform came into force at the end of 2015, but only in everything related to Bezeq. Regarding Hot, the Ministry of Communications set the tariffs only in 2017, but according to the ministry, Hot delayed the implementation of the reform until 2018 and created difficulties for its implementation.
Director General of the Ministry of Communications, Liran Avishar Ben-Horin: "The wholesale market is a cornerstone of competition in the communications market and we take seriously any attempt by infrastructure players to make it difficult, delay or discriminate against Internet providers seeking to use it. We will work resolutely to thwart any attempt to deceive difficulties on ISPs during the customer connection process - these attempts do not allow for healthy competition in the communications market. "
The amount of the financial sanction was determined, among other things, in accordance with the extent of the competitive harm, the benefit accrued from the eager telecom, the duration of the breach, the percentage of subscribers exposed to it and other parameters. The Ministry of Communications said, among other things: "The competitive harm does not amount to the lack of subscribers to the wholesale market, but to long-term harm that also has implications for the development of advanced networks of competitors, which are seen as growth engine for the economy."
Mehot responded: "We are surprised by the announcement from the Ministry of Communications. Hot fully complies with the regulations of the regulation in relation to the wholesale market, and invests a lot of resources in this, while encouraging service providers to use the Hot network." "The reform of the wholesale market in the cable network. We are sorry that the unfounded claims of competitors, who use the regulations of the regulations as a tool to strike and harm competition, are gaining ground. Hot will study the decision and examine its steps."

 

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