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Bezeq takes a hit as communications minister approves huge rate cut


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. ....

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