Cableco told to cease Mega-7 marketing

9 Nov 2007

Israeli cableco HOT and ISP Netvision have ceased marketing their ‘Mega-7’ internet infrastructure package in compliance with a ruling of the Tel Aviv District Court barring the two companies from selling the package until HOT opens the Mega-7 market to internet service providers other than Netvision. The court-issued injunction was handed down following repeated complaints from Bezeq International, which claimed that HOT and Netvision were acting anti-competitively.

In Israel, every ADSL or cable modem user has to pay separately for the infrastructure provider and for the ISP. However HOT’s Mega-7 package did not offer customers any ISP other than Netvision. ‘By bundling a package together that included the internet infrastructure and an ISP, the package that HOT was offering exclusively with Netvision went against the licence that was issued to HOT by the Communications Ministry,’ Bezeq International said. ‘By doing this, HOT essentially closed the market to every other ISP and prevented Bezeq International from offering the service to its customers.’