From 2022, clients to pay just one company for Internet

Starting next year, Israelis will pay only one company for Internet service.

Communications Minister Yoaz Handel approved a plan on Sunday to end a ruling that requires a split between Internet providers and Internet infrastructure companies.

“The reform will mean that every consumer in Israel will have one address for purchasing

Internet services and troubleshooting,” the Communications Ministry said.

Current regulations require Internet infrastructure and services to be provided and billed by two separate companies. That frequently leads to poor customer service, because subscribers calling to complain are frequently told that the problem is the other company’s responsibility.

“Following the political crisis, this is one of the first decisions I am making because its impact on the pockets of Israeli citizens and the service they will receive is enormous,” Handel said. “The Internet is one product.”

A previous “wholesale market” reform made it possible to market the two services in one package, but in practice, the services were also provided by two companies separately, in a way that harmed the quality of consumer services in Israel, the ministry noted. The decision to split the providers was made 20 years ago in an effort to increase competition in the field, but that has since been outweighed by problems, it added.

“The split, which was important at the time, has become a source of turmoil, a proliferation of dormant subscribers, and damage to customer service,” said Communications Ministry Director-General Liran Avisar Ben-Hurin. “The new structure of the Internet market will allow consumers to enjoy quality services, and at the same time will promote the wholesale market in a way that will ensure competition for the consumer’s heart.”

The reform will also minimize the number of dormant subscribers who pay about NIS 50 million a year for services they don’t use. The ministry has eliminated 46% of such accounts in the past year, it said.