The new regulations will reduce Bezeq’s revenues by NIS 360 million.
Minister of Communications Limor Livnat this afternoon referred for approval to the Knesset Finance Committee the new Bezeq regulations, reducing local telephone call rates by 21.5%. The regulations establish new rates for telephony services, as recommended by the Grunau committee.
As against the reduced payment per call unit charge from NIS 0.0265 to NIS 0.0208, the Ministry of Communications proposes raising the fixed monthly charge per subscriber telephone line by 16.1%, from NIS 31.1 to NIS 36.1, in most areas of Israel. This price hike amounts in real terms to 8.5%, net of the rise of the Consumer Price Index since the last adjustment.
Livnat notes that total changes proposed by the new regulations amount to an average reduction of 8.04%, representing an annual reduction of NIS 360 million in the company’s revenues.
The Knesset Finance Committee will discuss the new rates at a special session tomorrow.
Published by Israel's Business Arena March 21, 1999