Immediate Report - Recommendation for setting maximum tariffs for access to ultra-fast broadband operated on the Bezeq fiber network, and recommendation for changing the marketing formula of the “Reverse Bundle”
Tel Aviv, Israel – July 25, 2019 – Bezeq The Israel Telecommunication Corp., Ltd. (TASE: BEZQ), provides an update today further to the Company's immediate report dated December 19, 2018 and further to section 2.7.2 of the Chapter of the Description of the Company’s Operations in the 2018 Periodic Report concerning the Ministry of Communications’ announcement of the deployment of ultra-fast broadband infrastructure in Israel, and the updates to that section in the Company’s quarterly report for the period ending March 31, 2019, and, further to the description in section 184.108.40.206 of the Chapter of the Description of the Company’s Operations in the Company’s 2018 Periodic Report concerning the basket of combined services of Internet infrastructure with ISP (“Reverse Bundle”), and the updates to that section in the Company’s quarterly report for the period ending March 31, 2019.
An immediate report is hereby submitted that on July 24, 2019 the Company received hearing documents from the Ministry of Communications concerning (1) a recommendation for setting a maximum tariff for access to ultra-fast broadband operated on the Company’s fiber network; (2) a recommendation for changing the marketing formula of the “Reverse Bundle”. Recommendations by the Senior Vice President of Economics of the Ministry of Communications were attached to the document and a draft amendment to the Regulations. The documents were published on the Ministry of Communications website in Hebrew at:
According to the document, the hearings on the two subjects above are part of the overall fiber plan that the Ministry of Communications is formulating. The main points of the recommendations are, inter alia, as follows:
The date set for submitting comments to the hearing is August 18, 2019. The Company is studying the hearing documents and examining its response, including its intention to request additional clarifications from the Ministry concerning what is stated in the hearing documents.
It is stipulated that the Company does not operate today a fiber optics network that reaches the homes of private customers and that provision of BSA service will only be possible when there will be such a network, if there will be. To date, the Company has partially deployed a passive fiber optics access network as the first and basic element in provision of the service. However, establishing the network and provision of the service require additional, considerable investments and therefore require decisions and approvals of the Company’s competent organs.
The above information constitutes a translation of the Immediate Report published by the Company. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law, and represents the binding version and the only one having legal effect. This translation was prepared for convenience purposes only.