The merger between Bezeq International and Yes is on its knees and may be canceled. Globes has learned that the Bezeq Group is considering waiving the merger and final decisions on the issue are expected to be made in the coming month, against the background of the expected changes in the market and the frustration of not reaching an understanding with the employees.
Bezeq Group executives admit in closed talks that they have reached a dead end in negotiations with the workers, and against the background of the positive approach by the Ministry of Communications to examine this year the facilitation of selling Bezeq TV packages, the possibility of canceling the merger is seriously being considered.
As revealed in Globes, there is a positive trend for the Ministry of Communications and the Ministry of Finance to consider giving Bezeq relief on the issue of structural separation towards the end of the year or the beginning of next year. The intention is to consider giving Bezeq an option in the first instance to probably sell Sting’s TV package later this year, and then examine the abolition of structural separation in full or under restrictions.
The Ministry of Communications’ willingness to examine the sale of TV packages with Sting, which is yes’s low-cost product in the streaming market, comes against the background of expanding competition in the TV market. The ministry refused last year to allow Bezeq such a move, but in light of the abolition of the split between provider and Internet infrastructure next month, and as mentioned, increased competition in the TV market and the entry of new players, it is possible to positively examine Bezeq’s easing on this issue.
Meanwhile, and although the negotiations between the employees of Bezeq’s subsidiaries (Alpha Group) with the management continued in exchange for the lifting of the sanctions, in practice the negotiations reached a dead end and the parties are unable to move forward. This means that for Bezeq, the private division of the Bezeq International subsidiary will simply be closed down and not merged.
We emphasize that even if it is decided to cancel the merger of Bezeq International’s private division into yes, the bottom line is that negotiations will move to other issues on the agenda, such as the establishment of the ICT division as an independent company based on Bezeq International’s business division. The new.
The Bezeq Group already sees Bezeq International as a burden that must be resolved and it can be said that they are losing patience and therefore do not rule out options such as transferring Bezeq International’s Internet subscribers to Bezeq as part of the reform to eliminate the split between provider and infrastructure.
The uncertainty adversely affects the retention of customers at Bezeq International, but it mainly adversely affects the group’s plan to start selling triple packages through yes. We will emphasize that the whole idea of ​​establishing the Alpha Group was to reach a situation where it would be possible to sell a triple package at yes which due to being part of Bezeq could not do so when its competitors did.
The fact that the triple in yes did not rise on the fiber, is an event that the group treats with severity and seriousness, as it is intended to be part of the promotion of Bezeq’s fiber optics.
These developments cause the group to rethink some of the plans that were certain only a month ago, such as the merger of yes and Bezeq International.
The Alpha Employees ‘Committee stated that “We very much hope that due to the administrative crisis of the Alpha management and the failed attempt to force unilateral moves on the employees, Bezeq’s board of directors will finally internalize that any business plan promoted and approved will only be with the consent of the workers’ committee.” In the same way – to preserve the employees and their rights and act in parallel with the accelerated development of the companies. “