MoC proposes cancellation of interconnection charges

14 Sep 2021

Israel’s Ministry of Communications (MoC) has revealed plans to eradicate interconnection charges for both mobile and fixed line services. In a press release the regulator claimed that, with termination rates having last been revised back in 2014, the outdated fee structure has led to a market distortion which has been exploited by, among others, smaller content providers marketing a range of services – including call recording and conferencing – mainly to the ultra-Orthodox sector.

According to the MoC, it plans to make gradual reductions to the existing termination rates over a three-year period, rather than simply mandate that termination rates simply be cancelled. As per its plans, the regulator has proposed that after a one-year preparation period the mobile termination rate (MTR) should be reduced to ILS0.04 (USD0.01) per minute, down from its current rate of ILS0.05, while a further cut – to ILS0.02 – would follow a year later. Subsequently, MTRs would then be discontinued a year after that second cut is implemented. For fixed termination rates, meanwhile, the MoC proposed these should fall to ILS0.07 per minute at the end of the initial one-year preparation period, before being reduced to ILS0.04 a year later and then being cancelled twelve months following that.

Interested parties have been given until 13 October 2021 to submit their feedback on the ministry’s plans.

Israel, Ministry of Communications