MoC confirms price caps for passive infrastructure access, dark fibre

21 Jul 2022

Israeli telco Bezeq says it has received a resolution issued by the communications minister which it confirmed includes signed regulations and recommendations by the Economics Department of the Ministry of Communications (MoC). The resolution relates to the setting of a reduced rate for use of Bezeq’s passive infrastructure in ‘incentive areas’ (i.e. those areas where the operator had opted not to roll out full fibre services), as well at its infrastructure in ‘transition areas to incentive areas’.

As noted in TeleGeography’s GlobalComms Database, in February 2022 the MoC published a hearing for setting a maximum tariff for passive infrastructure access service and dark fibre connectivity. As per the regulator’s plans announced at that date, it said it was considering setting tariff caps with a view to encouraging provision of service by alternative providers in such locations. To that end, under the MoC’s proposals it initially called for the price of passive infrastructure access to be reduced to ILS108 (US31) per km per month, from a current charge of ILS409, while it suggested that dark fibre access should be charged at ILS195 per km per month (currently ILS501).

Now, with the MoC having issued a final decision on the matter, it has been confirmed that the maximum charge for passive infrastructure has been set slightly lower than initially planned, at ILS105 per km per month. Meanwhile, for dark fibre access the maximum fee has similarly been set at a marginally lower level than first proposed – ILS193 per km per month.

According to Bezeq, it ‘believes that the direct financial impact due to setting these reduced rates should not be material’, although the company has said it ‘continues to examine the resolution and associated document and the implications thereof’.