News Release

Attn.

Israel Securities Authority                                                                                    Tel Aviv Stock Exchange Ltd.

Immediate Report - Ministry of Communications Notice Regarding Reduction in Wholesale Market Tariffs

Holon, Israel – July 29, 2025 – Bezeq The Israeli Telecommunications Corp. Ltd. (TASE: BEZQ), announced today that further to Section 2.16.5.3 of the Description of the Corporation’s Business in the Company’s Periodic Report for 2024, and the update to said section in the Company’s Quarterly Report for the period ended March 31, 2025, regarding the wholesale market pricing procedure and the Ministry of Communications’ call for public consultation on BSA (wholesale broadband) tariffs, the Company hereby reports that on July 29, 2025 it received a hearing document regarding the determination of maximum wholesale market tariffs published by the Ministry of Communications.

According to the hearing, the Ministry believes it is necessary to update the cost model underlying the wholesale tariffs and to set new tariffs for the Company. In accordance with the hearing, during the remainder of 2025 and the next two years (2026–2027), all market players should be allowed to use the BSA service, and the Company will remain obligated to provide this service to any requesting party on a non-discriminatory basis. However, as part of a gradual process through the end of 2027, this obligation will be reduced such that, as of January 1, 2028, the Company will no longer be required to provide the service to the large telecommunications groups (defined as companies with 300,000 or more retail internet subscribers, including Hot), except in relation to 5% of the Company’s existing fiber subscribers.

According to the hearing, it is proposed that updated tariffs be set for wholesale services, including the tariff for managed broadband access services and passive infrastructure access services:

Additional tariffs are detailed in the Hebrew hearing document.

Responses to the hearing must be submitted to the Ministry by September 11, 2025.

According to the Company's assessment, the direct impact of the proposed tariff reduction, if approved and implemented as outlined in the hearing notice, is not expected to be material to the Company, inter alia, due to the IRU agreements the Company has signed.

Furthermore, if the proposed tariff reduction is approved, it is expected to have a positive impact on the Company’s subsidiary, yes Television and Satellite Services Ltd. ("yes"), and as a result, the Company is expected to recognize in its financial statements for the third quarter of 2025 a significant one-time accounting gain, due to the increase in the fair value of yes.

The information included in this report, including regarding the outcome of the hearing and its potential impact on the Company and its operations, constitutes forward-looking information as defined in the Israeli Securities Law, 1968. Such information is based on the Company's assessments, including assumptions and expectations, and the data available to it as of the date of this report. These assessments may not materialize, or may materialize partially or materially different, depending on the factors mentioned above, including factors beyond the Company’s control.

Yours sincerely,

“Bezeq” The Israel Telecommunication Corp Limited

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.