globes 6-3-2013
Hot ISP rivals recommend Bezeq infrastructure
Hot is struggling to close the gap with Bezeq as a telecom infrastructure provider.
Following HOT Telecommunication Systems Ltd. (TASE: HOT) announcement that it is upgrading Internet access speeds to 100 Mbps, market sources believe that the telecom provider is struggling to compete with Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) because rival Internet Service Providers (ISPs) are recommending Bezeq’s infrastructure to their customers. This is a form of revenge against Hot for entering the ISP market and hurting the existing players.
Sources close to Hot have confirmed to “Globes” that they have clearly discerned this trend as a main reason for the gap between Bezeq and Hot in the landline-telecom infrastructure market.
In 2012, Bezeq succeeded in capturing almost all the growth in the Internet market. At the beginning of the year, Hot had shaken up the market by establishing Hot.Net, its ISP unit with speeds of up to 10 Mbps for just NIS 20 per month. However, despite the low price Hot failed to capture a major market share.
Published by Globes [online], Israel business news – www.globes-online.com – on March 6, 2013