Bezeq CEO: IEC fiber optics won't happen

Avi Gabbay: IEC's fiber optic venture will never materialize because it is not economically worthwhile.

In an e-mail to employees, Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) CEO Avi Gabbay says that the threat from Israel Electric Corporation's (IEC) (TASE: ELEC.B22) fiber optic venture is far from realization, and that it will never actually materialize because it is not economically worthwhile.

Gabbay also told employees that the company was investing heavily in upgrading its network and developing products and services, and that it would continue to do so. He said that the company's sales were unprecedented, which would help it maintain profitability.

The letter to employees was in response to the company's deteriorating business results and the profit warning that it published for the year, which it attributed to rising competition in the mobile market.

Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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