HOT was fined NIS 6 million- didn't deploy Internet infrastructure in peripheral localities

The Ministry of Communications informed the communications company HOT that it is imposing a financial sanction of NIS 6 million on it, subject to a hearing, because it did not meet its commitment to deploy Internet infrastructure in peripheral localities. This is a violation of the company's obligation to deploy Internet and cellular infrastructure in about 200 of Israel's localities, as an alternative service to the cable infrastructure that the company is obligated to provide throughout Israel by law. This is the second fine of NIS 6 million that the ministry imposes on HOT in less than half a year. The previous fine was for violating the provisions of the law in the wholesale market.
These localities, most of which are populated by Arabs and ultra-Orthodox, were supposed to be based on wireless Internet services instead of wired Internet infrastructure. That is, instead of surfing at least 100 megabits - in these localities HOT was supposed to provide packages of up to 30 megabits, which is surfing at very low speeds.
According to the Ministry of Communications, because HOT did not deploy Internet infrastructure in these localities, it harmed competition. At the same time, following the conduct of HOT in some localities, it was not possible to use the Internet, as it is the only provider in the area - which increases the gaps between the center and the periphery. These localities are home to about 1.5 million Israelis, including about one million Arabs. It should be noted that in most localities there is the old Bezeq infrastructure, ie copper infrastructure that allows surfing speeds of up to 100 megabits.
Advocate Assaf Fink, who represents residents in Arab localities where there is no deployment of HOT infrastructure, said: “The Ministry of Communications is playing it strong over the weak. After we shouted that the solution of technological neutrality (laying wireless infrastructure) in front of HOT would not work, he ignored and fired it from universal retirement. Now we see that other solutions do not work either.
"Simultaneously with the financial sanction against HOT, the Ministry of Communications exempts Bezeq from deploying fiber optics in Arab and ultra-Orthodox localities, and again this population is discriminated against." Fink meant that in March, Bezeq received a relief from the Ministry of Communications that allowed it to deploy fiber optics in only 80% of Israeli households. The remaining 20% ​​are in those 200 localities - which are not connected to the Internet.
Under the terms of its license, HOT is committed to universal retirement - throughout Israel, similar to the obligation imposed on Bezeq. But since 2003, HOT has refrained from implementing the provisions of the law and deploying its cable infrastructure in these localities. In 2019, HOT received approval from the then Minister of Communications, David Amsalem, to provide those localities with an alternative service via cellular networks, instead of investing resources and digging in the ground to deploy an Internet network. The value of the relief granted by the Ministry of Communications to HOT in the abolition of the universal obligation is estimated at NIS 1 billion.
Residents of the relevant localities and councils have long complained to the committee that advised the Ministry of Communications to give the relief to HOT. "When the Ministry of Communications waived HOT's wired retirement, it noted that this was conditional on it actually providing good quality wireless services," Fink explains. "Since this did not happen, I call on the Ministry of Communications to oblige HOT to deploy wired communications in all these localities within 18 months."
HOT responded: "We are studying the financial sanction notice. We note that HOT has invested a lot of resources in complying with the Minister's decision, and has updated the ministry regularly and fully on compliance with the decision." An advanced fiber network through the funds of the Incentive Fund, which HOT substantially participates in its financing. "