Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) subsidiary Bezeq International Ltd. has obtained an inland telephony license from the Ministry of Communications. The company intends to launch telephony services soon, and will target subscribers of its international calls and Internet services. The company does not consider inland telephony as a major growth engine.
Bezeq International is the latest company to enter the inland telephony market, following Eurocom Group subsidiary 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC), IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary NetVision Ltd. (TASE: NTSN), Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), and Xfone Inc. (AMEX:XFN; TASE:XFN), all of which offer VoIP-based telephony service. Bezeq International will also offer VoIP telephony, via a wholly-owned subsidiary.
The Ministry of Communications granted the license on the basis of its policy that, after Bezeq's share of the inland telephony market falls below 85%, Bezeq International could get a limited VoIP inland telephony license for private customers. When Bezeq's share of the business sector inland telephony market falls below 85%, Bezeq International will be allowed to offer its telephony service to business customers as well.
Bezeq International will use the prefix 0765 for its telephony service. The company was using the 074 prefix in its pilot, but the Ministry of Communications agreed with a request from Partner that this prefix was too similar to its own. Since Bezeq received the 076 prefix for various purposes several years ago, the ministry decided that all Bezeq companies will use variants on the 076 prefix.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2009
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