Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bezeq Drops as Regulator Proposes Pricing Terms: Tel Aviv Mover

Don't Miss Out —
Follow us on:

Jan. 16 (Bloomberg) -- Bezeq Israeli Telecommunication Corp. fell to a four-month low after saying the regulator’s pricing terms for a wholesale market will hurt earnings.

Israel’s largest fixed-line provider dropped 4 percent to 5.523 shekels at the close in Tel Aviv, taking its two-day loss to 7.2 percent, the most since Oct. 24. The TA-25 Index slipped 0.3 percent.

The communications ministry yesterday recommended terms for creation of the wholesale market, proposing a charge of about 50 shekels a month for communication companies and Internet providers to lease lines from Bezeq. While the regulator expects the move to enable competition and lower prices in the fixed-line market, Bezeq said the proposals will affect its results.

“We expect the market launch in the second half of 2014,” Michael Klahr, an analyst for Citigroup Inc. in Tel Aviv, said in an e-mailed note today. “We expect greater price competition in a combined ISP and Internet access product and in triple play with fixed telephony and later quad-play that includes IPTV.”

Bezeq shares have declined 18 percent since their high of 6.76 shekels on Oct. 21 amid concerns of competition in its fixed-line business, which accounts for about 65 percent of revenue. The regulator is keen to lower prices for consumers through the creation of a wholesale market, where bulk network is sold, and the promotion of a competing fibre-to-home network. Israel Broadband Co. in November signed up a customer to use its fiber-optic network.

Internet Gold-Golden Lines Ltd., which has a stake in Bezeq via its B Communications Ltd. unit, dropped 6.9 percent. B Communications, owner of a 31 percent stake in Bezeq, declined 7 percent.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Samuel Potter at spotter33@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.