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For the first time, the communications ministry is setting prices based on a cost model for the wholesale market on modern fiber networks.
Israel’s Communications Minister Shlomo Karhi decided on a reduction in wholesale market prices of up to 40%.
Reducing the prices of major wholesale services by 30-40 percent is expected to increase competition in the fiber sector, reduce prices for consumers, and improve the quality of service, the communications ministry said.
For the first time, the ministry is setting prices based on a cost model for the wholesale market on modern fiber networks.
Following the move, the regulated rate that communications companies pay to Bezeq for use of its fiber infrastructure (BSA service) will be reduced by over 30%: from 72 NIS to 49 NIS per household, for a speed of 1 gigabit.
The move is expected to increase competition and reduce the prices that households pay for internet services, especially fiber-optic-based internet services.
Communications Minister Shlomo Karhi debates in the Knesset, in Jerusalem, December 9, 2024 (credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)
“An open, competitive and accessible communications market is key to reducing social gaps, economic growth and our national resilience,” said Karhi.
Increased quality, price, market competition
“We will continue to increase competition in quality and price – until every citizen in Israel can connect to fast, high-quality and affordable internet, regardless of their geographical location or financial capacity,” he added.