Against the backdrop of the charges made by Hot Cable Systems Media Ltd. (TASE: HOT) against Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ), for allegedly attempting to sign up new subscribers whose names it unlawfully accessed from Hot's subscriber base, a older affair has now surfaced involving Bezeq's subsidiary, Bezeq International Ltd., which acted improperly when it attempted to sign up Bezeq's customers.
"Globes" has obtained a copy of a confidential report first published in June 2005 by the then Bezeq auditor Danny Friedman, and submitted to the then CEO Amnon Dick. The report highlighted a series of shortcomings in Bezeq and Bezeq International's cooperation on the sale by Bezeq of access to its Internet infrastructure together with access to Bezeq International's network. Aside from the fact that this relationship amounted to improper conduct vis-à-vis rival companies, it is also problematic with regard to the Restrictive Trade Practices Law (5748-1988), given the connection between Bezeq International and Bezeq.
The report said "Bezeq International sales representatives handed over the names of the customers they signed up to vendors at Bezeq, who then signed up those customers for the WOW connection (Bezeq's broadband infrastructure) without their knowledge. In return, Bezeq vendors gave Bezeq International names of customers who had not yet registered with Internet service providers." Friedman said the method of sale, "could be problematic from the aspect of the Restrictive Trade Practices Law," and that it was a "wide-scale phenomenon, and not a local exception to the rule."
Published by Globes [online], Israel business news - www.globes.co.il - on August 2, 2007
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