Barak, Golden Lines, Cellcom, Pele-phone in Advanced Negotiations Over Cellular Overseas Call Tariffs

Cellular subscribers pay more than NIS 3 per call minute for international calls, compared with line users who pay NIS 1.

Negotiations between the two cellular telephone service providers, Cellcom and Pele-phone, and the two independent international telephone service providers, Barak and Golden Lines, shifted into high gear this week, following the opening of the market to competition. The two sides are displeased with the existing situation, whereby 1.5 cellular subscribers cannot use either of the two new international telephone service providers to call abroad, but instead must pay Bezeq International NIS 3 per minute.

Barak and Golden Lines refuse to pay the cellular companies for incoming international calls, as is Bezeq International’s practice. In Israel, as opposed to many other places in the world, including the US, cellular subscribers pay only for air time on outgoing calls. Incoming calls are paid by the party placing the call; payment is transferred via Bezeq to the cellular companies. In the case of calls incoming from abroad via cellular service, fees cannot be levied from callers abroad, but can also not be levied from the call recipient.

The Tenders Committee stipulated in the international telephone call tender, won by Barak and Golden Lines, that business plans must assume a NIS 0.30 per minute fee on calls to cellular companies, in terms of November 1995 prices, now equivalent to NIS 0.36. The international telephone service companies, "Globes" has learned, do not view themselves as obligated by this tariff which, in any case, does not meet the Cellcom tariff of NIS 0.40 per minute, or Pele-phone’s NIS 0.67 fee.

Apparently, the solution will be to set a temporary discount price on incoming caller air time, which will be paid by the international telephone service providers. However, they will also be obliged to pay a collection fee on occasional users, charges on data transfer for subscribers, and a collective enforcement fee.

Barak general manager Avi Patir told "Globes" that if an agreement is not reached, Barak will request intervention by Minister of Communications Limor Livnat to force the contract on the parties.

Golden Lines general manager Ram Belinkov said in response: "Pele-phone has an agreement with Bezeq International, and they have contacts with sister companies. Pele-phone is not interested in reaching an agreement with us, and therefore, their customers pay a dollar a minute. Cellcom also isn’t signing, but is more polite about it".

Cellcom’s spokesman said in response that the company is negotiating with the three international telephone service providers, and was not prepared to elaborate. Pele-phone had no comment.

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