The “Yediot Ahronot” Hebrew daily reports that Bezeq (TASE: BZEQ) is preventing communications companies seeking to enter VoIP telephony from hooking up to its landline infrastructure in order to conduct trials. Bezeq notified the Ministry of Communications of its policy.
Golden Lines International Communication Services Ltd., Internet Gold (Nasdaq: IGLD), Bezeq International, and Barak recently obtained authorization from the Ministry of Communications to conduct trial VoIP telephone calls. If the trials are successful, the companies will become direct competitors of Bezeq in wireline telephony. Bezeq announced that until the Ministry of Communications conducts a hearing in the matter, it will not connect call operators to its network, and will conduct no other actions with regard to the trials.
Among the issues to be decided in the hearing are payments by the VoIP call operators to Bezeq or to cable telephony company HOT, and the payment to Bezeq for using its infrastructure in order to provide the service. Bezeq asserts that because VoIP phone calls depend on its infrastructure, operators should pay it for the calls. The communications industry claims that, to a large extent, the decision on payment to Bezeq will also decide the fate of the new operators.
Bezeq said in response, “The Ministry of Communications has scheduled a hearing on many issues and points on which Bezeq has yet to receive an answer. Bezeq has not connected the trial operators to its network, since it is unreasonable to begin a trial when its format is unclear. When policy has been set, and a format for providing service established, Bezeq will gladly provide the service, and cooperate with those designated to receive licenses.”
The Ministry of Communications said, “The companies that have received approval for marketing trials are due to reach a commercial agreement with Bezeq. If no agreement is reached, they can ask the Ministry of Communications to decide the issue.”
Published by Globes [online] - www.globes.co.il - on January 24, 2005