Hot will acquire 23% of IBC for NIS 170 million – general

Good news for the fiber optic market: The Competition Authority today approved the cable company Hot to purchase 23% of the IBC project to deploy fiber optics for NIS 170 million. The deal is expected to be finalized in the coming days and is expected to make it easier for Hot, which was not interested in deploying fiber itself in light of the high cost, but also due to the large number of players in the market. In doing so, Hot also joins Cellcom, which is a partner in the venture.

After examining the proposal, the Authority realized that a non-merger between the two companies would impair their ability to deploy the critical infrastructure, with a merger helping synergy and accelerating the laying of fibers. “The merger review has revealed that the merger will give IBC the incentive and ability to significantly expand the scope and pace of its fiber infrastructure deployment,” the authority said in a statement.

“The broad fiber infrastructure that IBC will deploy will compete with the broad fiber infrastructure that Bezeq will deploy and the more limited fiber infrastructure that has been deployed and is expected to continue to be deployed by Partner.

“The merger is expected to allow most households in the State of Israel access to a number of advanced fiber infrastructures, and reduce Bezeq’s dependence on end customers who are interested in ultra-broadband infrastructure,” they added.

“The expected expansion of the fiber deployment scope by IBC will increase the range of options available to telecommunications companies that do not have independent infrastructure. These companies will be able to acquire in these areas additional broadband communications infrastructure (IBC) committed to providing wholesale service based on its fiber infrastructure. “Bezeq (which is also committed to this), in a way that will allow them to reduce their dependence on Bezeq and reduce infrastructure costs,” they concluded.

From IBC delivered In response, “The decision of the Competition Authority that joins the opinion of the Ministry of Communications and the Budget Division of the Ministry of Finance brings a breakthrough and good news to the Israeli economy. Hot entry into IBC will create a real wholesale platform that will create competition in the market.

“The resulting structural change will lead to a wide and accelerated deployment of the fiber optic network that will allow Israeli citizens to surf the ultra-fast Internet in a short period of time, increase productivity in the economy and connect the periphery to advanced communications infrastructures.” From a distance, study from home and maintain the proper functioning of the Israeli economy in times of crisis. ”