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Dec. 16, 2020
As days go, Tuesday couldn’t have been worse for Bezeq, Israel’s dominant telecommunications provider.
First, the Communications Ministry said it would back arch-rival Hot Telecom’s plan to buy the fiber-optic network provider IBD. Then the ministry announced it would be holding hearings to slash rates of Bezeq’s key landline telephony service by 40%.
Shares of Bezeq tumbled 12% over Tuesday and Wednesday in heavy trading to end at 3.44 shekels ($1.04) on the Tel Aviv Stock Exchange. More than a billion shekels was wiped off the company’s market capitalization in a single stroke.
“We are coming out today with a move designed to right a long-suffered consumer wrong that affects every household in Israel, in which we are revising Bezeq’s controlled fixed line telephone prices downward,” Communications Minister Yoaz Hendel said in a statement.