Israel’s Ministry of Communications announced reforms pushing operator Bezeq to cut fixed-line tariff prices by 40% after deeming the group raised surplus profits.
In a statement, the government arm said Bezeq’s prices have not been adjusted in 17 years, minister of communications Yoaz Handel said, it will “correct ongoing consumer injustice” affecting Israeli customers. Bezeq has until January 4 to respond to the reforms.
Handel noted, by not adjusting Bezeq’s prices for years the use of fixed-line services had decreased to just over two million subscribers. The 40% reduction is estimated to save subscribers around INS50-INS60 ($15-$18) per month, NIS400 million annually.
Liran Avishar Ben-Horin, Ministry of Communications director-general said: "The tariff update is requested after 17 years and the changes that have taken place in the communications market and technological developments in recent years, and is expected to produce the right balance between company costs and service payments and subscriber payments. The update is expected to reduce subscriber payments by hundreds of millions of NIS per year.”
