The reduction in tariffs for Bezeq will be rejected – global markets

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Leaps up because the Ministry of Communications has extended the contract of Prof. Reuven Gronau, who advises the ministry on lowering prices. If you extend the contract, then it is also very likely that the entire discussion with Bezeq will be extended, which means that the tariff reduction will take time. As if we thought otherwise.

A month ago, the Ministry of Communications issued a statement stating that it was interested in lowering the prices of fixed telephony by about 40%, which should reduce its revenues by about NIS 400 million a year from subscribers. Since then, the Minister of Communications and the State has changed hands on the way to the elections, as everyone knows. Apparently due to the inability to act in a transitional government, Bezeq gave the sailors the wind to try and stop the move.

Currently, the rates before the update are NIS 57.92 monthly usage fee, 4.1 cents per minute of call to landline during off-peak hours and 10 cents per peak hour, and 12.8 cents per minute of call from landline to mobile. The new prices will lead to a reduction in the monthly payment of telephone subscribers from NIS 50-60 on average to NIS 30-40. According to the ministry, this is an average saving of hundreds of shekels per household per year and 400 million shekels for the entire public.

The announcement a month ago caused the stock to crash close to 10% in one day and cumulatively by 20%. Before that, the stock, which had experienced a recovery in the past year due to wind changes in the Ministry of Communications, reached a peak of more than NIS 4.1 in October, but then it was discovered that it would have to write off up to NIS 300 million due to the double charges.

The Ministry of Communications stated: “Prof. Reuven Gronau is considered a world-renowned expert who advises the ministry on retail telephony tariffs, a topic that is currently under discussion. His employment has been extended both for the purpose of continuing to deal with this issue and for the purpose of advising on other issues facing the ministry. ”