Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) has been boosted by the backing of Minister of Regional Cooperation Tzachi Hanegbi to complete Israel's national fiber-optic network, even at the expense of undermining government plans to make the telco market more competitive.
Hanegbi told "Bloomberg," "If we don’t move ahead with a national fiber-optic infrastructure, Israel’s internet will get stuck in another two or three years. Without the advanced network, we’re in danger of going from Start-Up Nation to Stuck-Up Nation."
Hanegbi is also responsible for Bezeq as Prime Minister Benjamin Netanyahu, who is also acting Communications Minister, is deemed to have a conflict of interest regarding Bezeq.
Hanegbi, reports "Bloomberg," is prepared to allow Bezeq, which has already installed about 60% of its fiber-optic network, to offset and estimate $1.4 billion in losses from satellite broadcasting unit DBS Satellite Services (1998) Ltd. (YES) against tax payments.
The Knesset Economics Committee and Ministry of Finance officials oppose such a step, fearing that this would strengthen Bezeq and weaken competition in Israel's telco sector. Minister of Finance Moshe Kahlon has been more circumspect, saying that he is considering the matter.
Hanegbi told "Bloomberg" that any regulatory change would be contingent on a Bezeq commitment to invest NIS 700 million the advanced fiber-optic network in 2016 and to complete 76% percent of the network by 2020.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2017
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