For the first time in its history, Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) is offering a bundled package of landline, cellular, and Internet services. The Ministry of Communications will shortly amend the licenses of Bezeq and its subsidiaries to provide joint packages.
Although the package is unbundled, making it possible to buy each service separately, experience shows that the public is unaware of this option, and does not ask for each service separately.
The package, which Bezeq is due to unveil soon, will likely be cheap and interesting, setting the threshold that rivals will find difficult to match. The fact that DBS Satellite Services (1998) Ltd. (YES) is not included in the package is a mere formality, and, so far as is known, YES subscribers will be able to receive satellite TV through the package.
Until now, Bezeq only offered packages to the household market that included Internet access and ISP, telephony, and international calls. Ministry of Communications policy makes it easier for Bezeq to offer bundled services as its telephony market share in both the household and business segments falls.
Bezeq's strength, despite the loss of market share, has not affected the easements that the ministry is giving the company. Bezeq's profit margin in the business segment is still very high, and the company's deployment and strong engineering capabilities make it hard for other carriers to compete against it in this segment.
Bezeq, in contrast to its competitors, can offer customers bundled packages because of its nationwide deployment and advanced focused solutions. Adding mobile service to the package is very important, because business sector spend heavily on mobile services.
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2011
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