After 18 years in which the rates have not been updated, the home phone reform takes effect | From tomorrow, there will be a discount on landline phone prices Bezeq home phone rates will drop by about 40% to the consumer, and will save the public about NIS 400 million a year | The landline telephone service has 1.4 million lines, most of them in the ultra-Orthodox sector and veteran populations in Israel
Leah Efrati 31.03.2022
The home phone reform of Communications Minister Yoaz Handel, which reduces the rates for home phone service in the Bezeq network, will take effect tomorrow (Friday). The reform will reduce consumer prices by about 40% in two steps, and will reduce the monthly payment of home phone subscribers from NIS 50-60 on average to NIS 30-40. According to the ministry’s estimate, this is an average annual saving of hundreds of shekels for the household and especially for the elderly and the ultra-Orthodox sector, who make increased use of the home phone, and will save the public a total of NIS 400 million a year.
The reduction process will take place in two stages: In the first stage, starting tomorrow (1.4), the regular monthly payment will be reduced to NIS 35 (including VAT) and call rates will not change. In the second phase, which will begin in July 2023, the fixed payment will be 24.36 including VAT (NIS 20.82 excluding VAT), and call rates will change as follows – a call to a fixed 1.4 ag per minute and a mobile to 7.4 ag per minute (excluding VAT). These rates will be set as maximum consumer prices.
Bezeq’s telephony rates are set by the Ministry of Communications and the last update was made about 18 years ago, in 2003. The reduction is due to the need to update the mechanism and the need to adapt it to today’s competitive market conditions led by the ministry.
The Minister of Communications, Yoaz Handel, said today, “After many years of the public paying dearly for the home phone, we are bringing down prices that make the cost of living easier. As of today, the payment has been cut. The use of the landline phone has decreased over the years, but the landline phone service still has about 1.4 million subscribers, most of them from the ultra-Orthodox sector and the elderly population who make significant use of the home phone. The reform I decided on reduces the monthly payment of subscribers by about 40%, and it is expected to reduce the payment that a household pays for the service by hundreds of shekels a year. Reducing the price of the home phone is the clear focus of the relationship between politicians and the media market. In a reality without political involvement, this decision should have been made a long time ago. “
The director general of the Ministry of Communications, Liran Avishar Ben-Horin, stated that tomorrow another reform we led in the ministry will take effect, which will reduce the cost of living and save the public about NIS 400 million a year. The communications market has changed beyond recognition in recent years, and today it is one of the most competitive markets in Israel. The landline phone market has a significant amount of subscribers, who have so far paid a price that does not reflect the cost of the service, largely due to the lack of competition. The reform produces the necessary balance between the cost of service, technological developments, and the price to the consumer. “