"Israel is undergoing a consumer revolution. It began with gasoline prices - a protest that met with no great success - and went on to the cottage cheese protest, which definitely made noise. The protests prove that we have market failures," Minister of Communications Moshe Kahlon said at the "Globes" Digital Media and Market Conference today.
Commenting on the cottage cheese boycott, Kahlon said, "There are failures in the dairy products market, especially for cottage cheese. We cannot accept paying such high prices, which are also high in a global comparison.
"When there is consumers are aware, and see that something is expensive, they immediately react, for better or worse," said Kahlon. "Consumers have understood that they have power and they can challenge large companies that do not respond to them."
Commenting on the latest reforms in the mobile communications market, Kahlon said, "I didn’t hate the mobile carriers, but I felt that something must be done for consumers, because something was distorted.
"The situation is not good. The bandwidth isn't good enough. Education, the nation and science desperately need it," said Kahlon about Internet access speeds. "The moment we offer 100 Mbps access speeds, demand will grow."
As for Israel Electric Corporation's (IEC) (TASE: ELEC.B22) fiber optic venture, Kahlon said, "The tender will be published in the first week of August. 15 banks are already participating in the financing tender, and bank support for the project is important, as it is one of the largest projects in Israel. This is a sensitive tender, and I welcome the support of the large banks."
Asked if he planned more relaxations for the IEC venture, Kahlon said that he would do everything necessary to get the venture going. "A company that does not offer Internet broadband will simply become irrelevant."
Kahlon added, "Prices consumers pay for international calls to Israel are insane. I met OECD leaders to discuss Israel's joining Europe's mobile roaming, and I hope this will bring down costs."
Published by Globes [online], Israel business news - www.globes-online.com - on July 13, 2011
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