Hot’s entry into the IEC’s fiber venture will accelerate the retirement rate in Israel

Photo: Ronen Mendzicki, Gadgeti

The Ministry of Communications announced today (Monday, 8.2) that it has approved the acquisition of HOT’s control of the establishment of a super-fast Internet network based on the IEC’s fiber optics as part of the IBC project in which Cellcom also participates. The network so that it will be available to at least 1.7 million users across the country within 5 years, and maintain the uniformity of the fiber network deployment between the center and the periphery.

Director General of the Ministry of Communications Liran Ben-Horin:

We believe that the approval of the deal will lead to a significant acceleration of fiber deployment throughout the country and in the periphery in particular. This is a real message for the citizens of Israel, when as part of the approval of the deal we obliged the company to connect 1.7 million households, with each household connected in the center of the country connected to a household in the periphery.

Approval of the transaction will bring the ownership structure in the IEC’s fiber venture to a group that includes Hot, Cellcom and Keren Tashi (Israel Infrastructure), which will hold the controlling core of the company with a capital of 70% of its shares, while the remaining means of control (30%) will continue to hold IEC.

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Subject to the approval of the deal, the Ministry of Communications, headed by Communications Minister Bnei Gantz, demanded that following Hott’s joining the company’s core of control, the retirement rate of the fiber network in Israel be accelerated to 1.7 million households by 2025. Is for the network’s retirement in a 1: 1 ratio between a number of households in the periphery opposite the center.

In addition, IBC will be asked to preserve its character as a wholesale company and will be required to provide quantity discounts to enable small players who will use the new network to sell communications packages to end customers. Hot will be required to offer all ISPs to join any previously approved basket of services that will be offered on the basis of IBC’s Internet access infrastructure, on equal and non-discriminatory terms compared to the HOT-Net ISP, which is directly affiliated with HOT.