The Ministry of Communications broadband policy reform is underway - henceforth, connecting to the Internet will be carried out in one step, with no need to coordinate separately with an infrastructure provider and an Internet service provider (ISP). Under the reform, all the communications companies will be able to buy Internet infrastructures from Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and HOT Telecommunication Systems Ltd. (TASE: HOT) at “wholesale” rates, which is expected to lead to improved service by reducing the price that the public pays for a communications services package by tens of shekels.
Already this morning, 018 Xfone announced a reduction in Internet prices, and is offering a 100 Mbps Internet connection for a total cost of NIS 100 per month, for both infrastructure and ISP services.
012 Smile, owned by Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), also announced that it will launch Internet services (infrastructure and ISP) at NIS 100 for 100 Mbps. Internet at 15 Mbps will cost NIS 89 per month. The company has set up a dedicated website for the service, and has named the new service Internet One.
More companies are expected to advertise their Internet rates once the reform goes into effect. The rate for 40 Mbps will be roughly NIS 89 per month, and the rate for 15 Mbps will be roughly NIS 79 per month.
The new prices are NIS 20-30 less per month than the prices before the reform. Bezeq, for example, sold a 100 Mbps package for NIS 110, not including ISP services, such that the total cost was between NIS 130 and NIS 140, depending on the rate paid to the ISP.
Hot also reduced rates yesterday for its 12 Mbps service - instead of costing NIS 89 per month, it will now cost NIS 75, for infrastructure alone. ISP service must be added to this, such that the price for the 12 Mbps package is not particularly attractive.
The prices are valid for one year, after which they will go up by NIS 20.
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2015
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