Bezeq can sell integrated Internet packages - Internet infrastructure with a provider (ISP) - indefinitely
Posted on Jun 18, 2020 by Ifi Reporter - Dan Bielski
After years of wars between Bezeq and the Ministry of Communications, fresh Minister of Communications Yoaz Handel gives the monopoly what he wants: Bezeq can sell integrated Internet packages - Internet infrastructure with a provider (ISP) - indefinitely.
Until the Corona era, the Ministry of Communications implemented a unique regulatory policy towards Bezeq. The goal was to prevent Bezeq - which holds 70% of Israel's Internet infrastructure - from strengthening its power as a monopoly. According to instructions that were in effect until recently, Bezeq could sell an integrated package, ie market an ISP package together with the infrastructure in one invoice (Bendel) - but after 12 months the package would fall apart, and Bezeq was prohibited from further marketing the package.
Although the purpose of the directive was to allow competing companies to offer Internet access services, it was a major consumer injury - because tens of thousands of customers were disconnected from the Internet and had to reconnect to an Internet service provider.
The Ministry of Communications has held a number of hearings in the past year, and various solutions have been formulated. During the Corona, former Communications Minister David Amsalem was instructed that all the split provisions be canceled after 12 months. Now, the current Minister of Communications, Real Estate, is making the temporary directive permanent, and now Bezeq will be able to market integrated packages.
The Ministry and the Minister should also look into the issue with regard to HOT, which is generally banned from marketing an integrated package including a supplier. Only recently has the Ministry of Communications imposed a fine of NIS 1.4 million on HOT for the marketing of integrated packages.
According to the new guidelines, the split order after 12 months is abolished, and Bezeq will be obliged to market all access providers - including companies such as Cellcom and Partner, which simultaneously market the Bezeq infrastructure itself in the wholesale market - and inform customers of the options available to them. According to the firm, this marketing format will also be valid for fiber-optic technology, if and when Bezeq launches it.
Bezeq's guidance comes after changes the Ministry of Communications has made to the company over the past year, headed by the directive that it will not be charged with universal fiber optic retirement throughout the state. In addition, the Ministry of Communications is considering eliminating the previously imposed restriction, which prohibited Bezeq from marketing Internet packages at 200 megabytes.
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