Communications minister blocks Bezeq rate hike
Gilad Erdan cites the delay in creating competition in the telephony market.
26 May 13 17:20, Gad Perez
Sources inform ”Globes” that Minister of Communications Gilad Erdan has blocked a planned telephone rate hike by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), citing the delay in creating competition. Bezeq would have made NIS 18 million a year from the rate hike, through the predetermined mechanism for raising rates, based on the Ministry of Communications’ oversight policy for the company, because it is a monopoly. Bezeq did not ask for the rate hike and even said that it agreed with Erdan’s decision.The Ministry of Communications decided not to allow the automatic rate hike, because it was improper so long as there was no new arrangement in the telephony market through the wholesale market. In this market, Bezeq is supposed to allow other carriers, such as mobile carriers Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), to use its telephony infrastructure to compete in the market. In exchange, Bezeq will receive certain easements, including the cancellation of supervision of its rates.
Published by Globes [online], Israel business news – www.globes-online.com – on May 26, 2013
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