Bezeq infrastructure price cut for periphery

Bezeq fiber optic cables Credit: Eyal Izhar
Bezeq fiber optic cables Credit: Eyal Izhar

Israel's Ministry of Communications has cut the tariff for using Bezeq's infrastructure in the peripheral regions where it will not be laying fiber optic cables.

Israel's Ministry of Communications has cut the tariff for using the Bezeq Israel Telecommunications Company Ltd. (TASE:BZEQ) infrastructure in the peripheral regions where it will not be laying fiber optic cables. Bezeq will not be laying fiber optic cables for 18% of households where either its rivals or small contractors are laying the cables with a government subsidy.

Reducing the Bezeq infrastructure tariff will assist the contractors and increase their profitability because in most cases they use the existing Bezeq infrastructure for the cable deployment. "Globes" recently revealed that there was criticism against the Ministry of Communications for not cutting the Bezeq infrastructure tariff because it was delaying deployment of fiber optic cables in peripheral regions.

Bezeq said, "The option of using existing passive infrastructures increases efficiency of the network because it brings savings in the cost of deployment of the companies that don't have an infrastructure in those regions. Cutting the tariff in incentivized regions where Bezeq chooses not to deploy the advanced network will increase the rate of deployment by rival companies in these regions and directly impact the overall digital caps in the country."

Published by Globes, Israel business news - en.globes.co.il - on July 19 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Bezeq fiber optic cables Credit: Eyal Izhar
Bezeq fiber optic cables Credit: Eyal Izhar
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