The Ministry of Communications published today (Wednesday) the list of companies that win the incentive tender for fiber deployment in the periphery. On Monday this week, the ministry announced the results of the tender in terms of the number of localities to be deployed, but waited with the publication of the names of the winners until the final results were known.
The company that won the largest number of households is the Rimon Israel Internet company, which won about 121,000 households in 137 areas. In second place is Norcom Communications with about 56.7 thousand households in 38 areas. Third place went to IBC with about 53.9 thousand households in 92 areas. It was followed by Shita Engineering and Infrastructure Communications Ltd. with about 23.7 thousand households in 113 areas.
Fifth partner with about 12,000 households in 35 areas, Eshed Planning and Execution Management with about 5,700 households in 10 areas, Dash Eliran Electronics with about 5,500 households in 23 areas, Lanir Communications (Xpiper) with about 3,700,000 households in 5 areas, Nextcom with about 3,600,000 households in 11 areas, and most recently Telran Communications with about 1,400 households in 10 areas.
The areas that won the tender are areas in which the deployment of fiber is not economically viable and Bezeq has chosen not to deploy fiber in it. The winning companies will be given a period of one year and three months from the date their license is amended, to complete the deployment obligations and therefore a massive deployment is expected in 2022, which will bring the State of Israel closer to 70% of households, with 2023 expected to reach 85% of households. More.
The Ministry of Communications will oblige the companies that win the tender to provide their competitors with a wholesale service on the network that will be interpreted by them and to offer services to consumers, thus promoting competition in the kick-off areas.
Half a percent of the companies’ income goes to the incentive fund
As part of the fiber outline set forth in a law passed in the Knesset in December 2020, the incentive fund was established, to which 0.5% of the revenues of the communications companies per year are deposited. In 2021, these revenues amounted to NIS 84 million. Approximately 98% of this amount will be distributed to the companies that win the tender as subsidy grants for the deployment of the advanced network in the incentive areas (all incentive areas include approximately 18% of households in Israel and the winning incentive areas constitute approximately 10%).
It is important to emphasize that most of the winning companies did not participate in the financing of the incentive fund. This means that the major operators in Israel have been taxed and they finance the deployment of fiber in the periphery, instead of the state taking responsibility and doing it.
Communications Minister Yoaz Handel said: “We are pleased to announce today the companies that won the tender and wish them great success. The incentive fund was established as part of the fiber outline, to ensure that no remote locality and no sector is left behind.”