Bezeq commitment: Deployment of fiber optics throughout the country within 10 years
Posted on Jul 20, 2020 by Ifi Reporter - Dan Bielski
Deployment of fiber optics throughout the country within ten years and Bezeq's commitment to deploy fiber to the home: The Ministry of Communications published the report of the inter-ministerial team on the fiber outline, headed by the ministry's deputy director of economics, Dr. Ofer Raz-Dror, and the minister's comments The goal is for the fiber-optic infrastructure to bring ultra-fast Internet to every home in Israel that is connected to the Internet.
The Minister accepted the principles of the outline, but asked for changes to be made that would allow the deployment to be brought forward and ensure retirement in the periphery and in nearby localities, including settlements in Judea and Samaria. According to the Minister of Communications, near-border settlement, peripheral localities and underprivileged populations should be preferred, amounting to about 10% of the households that will be deployed in the incentive area each year.
All this in light of the fact that the state has been trying for years to allow Internet access to every resident, and despite this, HOT's cable infrastructure (which is not fiber infrastructure) still does not reach every home in Israel.
According to the Ministry of Communications, "The implementation of the plan is expected to lead in the short term to a widespread deployment of a fiber network, and in a reasonable period of time to a nationwide deployment of a fiber network. "It will affect the quality of the networks, the quality of the products and services, and the price to the consumer."
Today, there are three entities that deploy and connect consumers to fiber optic infrastructure in Israel: Partner (approximately 625,000 households), Cellcom and IBC, the former IEC's fiber venture, which belongs to Cellcom (approximately 400,000 households and is committed to reaching 40% Households within a decade). They connect mostly high-rise buildings. Together companies have only 150,000 subscribers.
Today, only 10% of the population has access to fiber in the country. Among the OECD countries, the most accessible is in the countries of Andorra, Portugal, Spain and Latvia.
Among broadband customers, the deployment currently stands at 30%. By January 2022 it is expected to reach 45% of the population. In phase B, there will be an 80% layout in high-rise buildings and Bezeq will join. In phase C, a 100% layout, including ground-level units. All this despite the fact that the rate of data consumption in Israel has increased 14.5 times in the seven years. Mobile data consumption began in 2013 in its current format.
Bezeq has a fiber infrastructure that the company does not yet operate or connect to homes (deployed to about 60% of households). According to the outline, Bezeq will choose the areas in which it will deploy a fiber-optic network to the house. The deployment will be determined by its license and will take place within five years (without universal deployment obligation), thanks to an incentive system: it will be limited during deployment, wholesale market prices will be significantly reduced in incentive areas and Bezeq will be charged to the universal fund. You can get financing from it unlike its competitors. At the same time, Bezeq's copper infrastructure deployment obligations (IDSL) will remain in place.
HOT, on the other hand, will not have a universal deployment obligation in a new access network and there will be no change in the deployment obligation in the existing access network. It will be able to participate in the competitive processes and win the funds of the Universal Fund and will have the right to use BSA's fiber network of another company, if it starts with the deployment of an independent fiber network.
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