The Ministry of Communications approved NetVision and Internet Gold Lines' (Nasdaq: IGLD) application to start tests of telephony services, using VoIP protocol. This is the first time Internet Service Providers (ISPs) have been allowed to conduct a VoIP test in Israel. Until now, only the cable companies have been allowed to do so.
The approval is a significant step toward full competition in Israel's international and inland telephony markets. Last week, Internet Gold officially announced that it planned to compete against Israel's three current international calls carriers within two months.
When NetVision published its annual financial report, CEO Avi Zvi said the company was planning to enter the international and inland telephony markets. However, NetVision is a subsidiary of IDB Holding Corp. (TASE:IDBH), which also controls international calls carrier Barak, so it is uncertain whether it will compete against its sister company.
The Ministry of Communications has allowed NetVision and Internet Gold to each carry out a test for 100 subscribers. The ministry will require each new international calls carrier to also provide non-VoIP service, since the service must be universal, and not just for customers with broadband Internet access. The cable companies, under their joint HOT Telecom brand, are currently conducting a test for 200 household and 200 business subscribers.
Published by Globes [online] - www.globes.co.il - on April 7, 2004