Bezeq general manager Ami Arel commented today in response to "Globes" reports, that Minister of Communications Limor Livnat and Prime Minister's Office director-general Moshe Leon will evidently reduce by 2% the 7% streamlining coefficient that the Grunau committee recommended imposing on Bezeq. He said that if this is the only amendment to the Grunau report, it would not be a surrender to pressures by Bezeq, but the trampling of Bezeq underfoot.
Arel made this scathing comment after refusing, for several days, to make any comment on the matter at all. According to Arel, Bezeq has hitherto gone along with the State as regards opening the market up to competition and privatising the company. "We are co-operating, we are making the necessary preparations, and the company’s work plan takes into account that the market is being opened up to competition in 1999.
"But, at the same time, what is happening at present is beyond all bounds. Bezeq has become everybody’s whipping boy. The press is full of reports as to pressures that Bezeq is allegedly exerting on decision makers, whereas, in practise, the reverse is happening.
"Does anyone suppose that our former notice to the Tel Aviv Stock Exchange, saying that the implementation of the Grunau report recommendations would cause a significant worsening of the company’s business results, was composed idly?", Arel asked. He added that Bezeq has no doubt that prices must be reduced "but to what extent, is a professional discussion that must take place in conference rooms".
Regarding the streamlining coefficient, Arel said "If this amendment is passed, the overall result will be a significant deterioration in the company’s business results. The decision makers bear overall responsibility not only for prices, but for the sector as a whole and for the fate of Bezeq".
Published by Israel's Business Arena January 14, 1999