Bezeq requests VoIP permit; signs deal with Alcatel-Lucent

26 Aug 2008

Israel’s incumbent telecoms operator Bezeq has filed an official application with the Ministry of Communications (MoC) for a permit to provide VoIP services, following the decrease in its share of the telephony market, Globes Online is reporting. The application comes after the January 2007 ruling by the MoC that prohibited Bezeq from offering VoIP services until the parent company’s share of the domestic fixed line market share fell below 85%; an increase in competition to provide VoIP services from operators including Hot Cable Systems Media, Cellcom Israel and Smile Communications is also understood to have prompted Bezeq’s recent submission.

Bezeq has also announced a deal with Alcatel-Lucent for the latter to provide a solution for the operator’s metro Ethernet network. Alcatel-Lucent will provide its Ethernet & IP routing solution to help Bezeq deliver premium Ethernet L2 services, such as Virtual Private LAN Service (VPLS), and Ethernet-lines (E-lines) to its business customers. No financial details of the deal have been revealed.