NetVision halts payments to Bezeq for internet traffic

27 Jan 2010

Israeli telco NetVision has unilaterally cancelled a payment deal that it had in place with fixed line incumbent Bezeq, Globes Online reports. It is understood that NetVision announced that it was no longer willing to pay Bezeq under the terms of the arrangement, in which fees owed to the latter are based on the volume of traffic over the network. The move is believed to be a response to a surge in such fees related to internet traffic. It has not been revealed whether NetVision intends to cancel a similar deal with cableco HOT Telecommunication Systems, as the two companies have a similar agreement, although the price per GB it pays HOT is lower; NetVision pays ILS45, 000 (USD12,049) per GB per month to Bezeq, while it pays ILS39,000 to HOT. NetVision has claimed that Bezeq’s prices are too high, especially when considering the rising level of internet traffic, but has noted that it has no alternative other than to work with the incumbent. NetVision has reportedly written to the Ministry of Communications, calling on the regulator to urgently intervene in the matter.