The Finance Ministry has opposed IEC entering new fields until its reform is done.
"It is possible that the damage from non-use of Israel Electric Corporation's (IEC) (TASE: ELEC.B22) fiber optic infrastructure could outweigh the advantage of placing restrictions on its entry into new fields," a senior Ministry of Finance official told "Globes" in response to the Ministry of Communications' intention to advance the use of the utility's network to increase competition in the telecommunications market.
The official said that moving forward on IEC's investment in its fiber optic network was an important issue, and that the Ministry of Finance was deliberating whether it was correct to delay granting permission to use the network until the electricity sector reform is approved, as stipulated by law. He said that there had been some movement in the ministry's position on this point, and that the Ministry of Communications' position appeared reasonable and desirable.
For years, the Ministry of Finance has opposed the IEC entering new fields, including overseas projects, seawater desalination, and communications, until the reform of the company is completed, including splitting it into subsidiaries that would be floated on the Tel Aviv Stock Exchange (TASE).
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009