Bezeq group will be able to sell a triple package at lower prices than those currently available
Posted on Apr 12, 2021 by Ifi Reporter
The Alpha Group (which includes yes, Bezeq International and Pelephone) will now be able to sell a triple package, which includes yes' TV services, at lower prices than those currently available - the Competition Authority has decided, in light of increased competition in the multi-channel TV market.
As part of the Bezeq-yes merger in 2014 (a procedure currently being discussed in the trial of Prime Minister Benjamin Netanyahu in the 4000 case), the Competition Authority imposed several restrictions on the merged company's activities. The main limitation was to prevent the Alpha Group from taking over the multi-channel television market.
This restriction actually forced Bezeq to sell its triple package at a higher price than its competitors, Cellcom and Partner. The restriction stipulated that any triple package (which includes TV, internet and telephone) would be unloadable. That is, the price of each service on its own will be compatible even when the three services are sold in one basket. Unlike the Alpha Group, its competitors sell discounted triple packages relative to the price of a service product on its own.
In the last two years, the Alpha Group has taken significant steps and has begun selling triple packages of yes and Bezeq International services. These packages are sold at a price of NIS 299 per month for yes + services over the Internet. Alpha's subsidiaries will now be able to sell the packages more cheaply because of the sale of a unified basket of services.
The Competition Authority explained that seven years later, competition in multi-channel television expanded and there are now also content services from abroad. Therefore, there is no further justification for these restrictions. In addition, the Competition Authority took into account the fact that wholesale market reform works smoothly Filled on top of Bezeq or HOT infrastructure.
In addition, the Competition Authority removed another restriction on the Alpha Group, under which it was prohibited from signing exclusivity agreements in the purchase of content for multi-channel television. In this case, too, the Competition Authority clarified that there is high competition and availability of the content, and therefore there is no justification for continuing the restriction.
Although competition in the television market has expanded, and according to the Ministry of Communications, by 2019 the subscription fee has dropped by about 30%, the power of Bezeq-yes and the HOT group is still large. The two companies together hold about 1.5 million customers, compared to about 500,000 subscribers to Cellcom and Partner. If we look at the distribution of income between Bezeq-yes and the HOT group, their power is much greater because of the premium price they charge relative to the competing players. Yes and HOT are also the only ones that invest in large-scale Israeli original productions.
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