Minister of Communications Benjamin Ben-Eliezer: The move is necessary due to the Consumer Price Index fall, the Grunau Committee’s recommendations, and the merger of area codes and the security situation.
Minister of communications Benjamin Ben-Eliezer today sought the Knesset Finance Committee’s approval of changes in Bezeq’s tariffs, under the company’s regular annual revision in accordance with the Grunau Committee’s recommendations. The price of the installation of a telephone line will be cut by 3%, and landline-to-landline call tariffs by an average 2.8%. Landline-to-cellular calls (made by Bezeq subscribers to cellular operators) will increase 39%, and fixed monthly payment for telephone lines of all types will go up by 2.42%.
Ben-Eliezer says that the revision is due to several factors, including: the reduction of the efficiency coefficient, in accordance with the Grunau Committee’s recommendations, due to the fall in the Consumer Price Index; the narrowing of the gap between some tariffs and their costs; and the change in the method of calculating inland calls, approved last March. Other factors include the merger of area codes in northern and southern Israel, which led to a loss of revenue as inter-area calls became local ones; investment in expanding cellular operators’ area codes; and an increase in security expenses due to difficulties in repairing malfunctions in certain areas in the course of recent outbreaks of violence.
The requested tariff changes are due to go into effect on March 1. The Finance Committee will discuss the changes tomorrow. The committee will also be asked to approve March 2002 as the date for the next tariff revision, and the required 2.66% tariff cut beyond cuts stipulated by the revision formula under the existing regulations.
Published by Israel's Business Arena on 25 February, 2001