The government is prepared to consider a new country-wide fiber optic network, and is willing to set it up itself, through a national infrastructure company.
Today marked the first time that Minister of Communications Moshe Kahlon clearly criticized the existing prices of the Internet infrastructure provided by HOT and Bezeq, ahd Kahlon is willing to battle to lower prices. One measure being considered is usig the IEC's infrastructure to carry the data.
Minister of Communications Moshe Kahlon and Israel Electric Corporation (IEC) (TASE: ELEC.B22) CEO Haim Lasker will meet next week to discuss using the utility's fiber optic network for communications. Both men will be accompanied by their aides.
Kahlon told the Knesset Science and Technology Committee today that he had gained the Ministry of Finance's support for the measure, which he considered to be of national importance.
Science and Technology Committee chairman MK Meir Sheetrit (Kadima) said that private companies could not build the necessary infrastructures for 100 Mbps and faster high-speed Internet. He said that there was no competition between the telecommunications infrastructure providers - Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) and Hot Cable Systems Media Ltd. (TASE: HOT) - which resulted in especially high infrastructure usage prices.
Sheetrit added that Bezeq does not let anyone else use its infrastructure, which therefore required government intervention. He said that the state should invest in deploying telecommunications infrastructures to outlying areas, after which the infrastructures could be sold. He also said that rules should be set to allow competitors to lease infrastructure segments from Bezeq.
Kahlon replied that he viewed the deployment of telecommunications infrastructures to outlying areas as his duty. He said that this was one of the top issues on the ministry's agenda, and that he wants to set up a national telecommunications infrastructures company, and that he had raised the issue with Prime Minister Benjamin Netanyahu.
Kahlon said that he first wants to recruit IEC for this effort, because its fiber optic network was available for immediate use. He added that the Ministry of Finance and withdrawn its condition that the electricity market reform first be completed before allowing use of IEC's fiber optic network.
Representatives of Bezeq and HOT told the committee that they intended to complete a nationwide deployment of their new networks. HOT promised that its UFI network will be completed by the end of 2010, and Bezeq promised that its network will be ready within three years.
Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009