Israel’s Ministry of Communications has taken a significant step to enhance competition and reduce costs by implementing immediate and substantial price reductions for utilizing Bezeq’s infrastructure, Israel’s national telephone company.
The ministry has slashed the fees for using Bezeq’s “passive infrastructures” from 446 Shekels ($122) per kilometer per month to just 250 Shekels (USD 70) per kilometer per month. This marks a substantial decrease of approximately 44 percent. This reduction, effective from April 1, 2024, is the first in a series of planned reductions, with the new pricing structure set to remain in effect until June 2025.
Bezeq holds a monopoly on physical communication infrastructure in Israel, including channels, pipes, towers, and poles across the country. The terms governing access to Bezeq’s infrastructure have a direct impact on the ability and motivation of other telecom companies to establish independent infrastructures and compete with Bezeq in delivering internet services to the public.
The current period in Israel is characterized by extensive expansion of advanced networks throughout the country. Therefore, reducing the rates for using Bezeq’s passive infrastructure is deemed crucial to fostering competition and incentivizing telecommunications companies to expand their fiber infrastructures.
This reduction is expected to spur telecom companies to invest more in their infrastructures, leading to improved quality and affordability of services for consumers in Israel. The move reflects the government’s commitment to creating a competitive telecommunications market that benefits both businesses and consumers in the long term.
