The ISPs have asked telephony infrastructure providers Bezeq and HOT to improve their connectivity terms and cut tariffs.
Internet services providers (ISPs) are worried by the entry of Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) into the sector. Sources inform ''Globes'' that Israel's three largest ISPs, Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) subsidiary Bezeq International Ltd., IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary NetVision Ltd. (TASE: NTSN), and Eurocom Group subsidiary 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC) have asked Bezeq and Hot Cable Systems Media Ltd. (TASE: HOT) to improve their connectivity terms and cut tariffs in order to meet the anticipated challenge from Partner.
The ISPs are already aggressive marketing faster surfing speeds to subscribers in exchange for two-year commitments. The ISPs are targeting subscribers who are cellular subscribers of Partner.
The ISPs are afraid that Partner will offer packages linking Internet and cellular services. Market sources say that although this is not Partner's initial direction, it is nevertheless a type of package that the ISPs will find it difficult to respond to.
Telephony infrastructure companies Bezeq and HOT report that lobbying from the ISPs has intensified in recent weeks because they believe that Partner will launch its ISP service in December. The ISPs have therefore intensified their customer retention efforts and inaugurating upgrades to hitherto undreamed of levels in an effort to prevent subscribers abandoning them.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2008
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