News Release

Further to Company's immediate report of June 14, 2020 regarding a very high capacity advanced network and the corresponding updates to Section 2.7.2 in the chapter describing the corporation’s business in Company’s 2019 periodic report as well as updates to that same section in the Company’s quarterly report for the period ending June 30, 2020, an additional supplementary report is hereby submitted, stating that on August 25, 2020, Company received the Ministry of Communications’ decision and the recommendations of the director of the Engineering Administration in the Ministry concerning an advanced network with a very high capacity. The decision adopts the recommendations of the professional staff and defines the criteria for the characterization of an advanced network, which would allow any operator to select the composition of technologies by which he provides the service to his subscribers. Pursuant to the decision, an advanced network shall be a network meeting one of the following criteria:

1. Criterion 1 – FTTH Fiber-optic Network[1] based entirely on fiber-optics running directly to an optic outlet in the consumer’s home.
2. Criterion 2 – A wired network able to provide, under ordinary peak conditions, services to the end-user at the QoS (Quality of Service) defined in the decision.

This definition shall serve for determining the deployment obligation for owners of infrastructure (the Company and HOT) and participants in tenders in the incentivized regions).

This decision joins additional decisions by the Ministry regarding the fiber-optic framework

Following is a link to the Ministry of Communications’ decision and the recommendations of the Director of the Engineering Administration at the Ministry of Communications published on the Ministry of Communications’ website:

https://www.gov.il/he/departments/policies/25082020_3

Sincerely,

Bezeq The Israel Telecommunications Corp. Ltd.

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.

[1] FTTH - Home Fiber-optic Network constitutes a fiber-optic based access network connecting a large number of end-users’ home optic outlet to the primary spot known as a Point of Presence (PoP). Each access intersection contains all the required relay equipment to provide subscribers with fiber-optic access to applications and services. Each access intersection is connected to a larger urban or metropolitan fiber-optic network.