The Ministry of Communications decided to issue Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) a massive fine of NIS 8.5 million for hurting competition during the reforms of the wholesale market with the violations harming consumers during the broadband reform, like overly-complicated switching procedures which led to extended waiting periods and cancellations by customers.
The decision marked the highest fine issued by a regulator in recent years. In the ministry’s announcement, it noted director-general Shlomo Filber has fined Bezeq a total of NIS 17 million since entering office.
The company was sanctioned for violations committed during the period in which the wholesale market faced reform. “During that time, the relationship between the Ministry of Communications and Bezeq was at a low the talks between the parties, which started well, were conducted for many months using lawyers and courtrooms, with almost no direct contact. During that time, Bezeq found it permissible to break the directives of the regulator,” said the ministry statement.
Filber changed the conduct towards the company, and the parties now hold professional meetings at every echelon. As a result, these days many issues regarding the running of the market are successfully resolves, with the hope that no regulatory or enforcement measures would be needed, said the ministry.
The aforementioned reform was intended to encourage competition and allow internet service providers to offer a connection to the internet at a lower cost, without the need for a separate agreement with the infrastructure provider.
The Ministry of Communications said Bezeq was handed several directives during that period on how to transfer clients to the ISPs. Despite the orders, Bezeq transferred information regarding its clients provided by the ISPs as part of the request for service to its sales and marketing department for “customer retention.”
Furthermore, claimed the ministry, the procedure for switching clients from Bezeq to the ISPs was significantly longer than necessary and led among other violations to extended waiting periods and many cancellations by clients.
Bezeq even refused to accept requests by phone to transfer clients from its competitors against the directives thereby complicating the switch.
The company also discriminated by changing its operating hours for its telephone service center, with the help line for the ISPs offered for significantly less hours than the service line for Bezeq customers.
Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2015
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