Bezeq allowed to sell triple-play packages
Ministry of Communications amends license of Israel's largest phone company to maintain competition after its landline market share falls below 85%
The Ministry of Communications said in a statement on Tuesday it had amended Bezeq's license to maintain competition.
Bezeq's fixed-line market share fell to 75.7% last year, pressured by cheaper offerings from cable company HOT and expanding mobile phone operators.
Its shares fell 2.65% at NIS 8.92 (about $2.38) in afternoon trading in Tel Aviv, compared with a 1.26% drop on the broader market.
Once a monopoly, Bezeq has been negotiating with regulators about amending its license. But regulators have conditioned any amendment on its landline market share falling below 85%.
The ministry said Bezeq would be allowed to sell the packages to private customers only. It said it was reviewing a request from Bezeq to offer such packages to business customers.
Bezeq has responded to the increasing competition with higher spending on its DSL high-speed Internet and mobile phone networks.
Its mobile phone unit Pelephone has been narrowing the gap with market leaders Cellcom Israel and Partner Communications .
Helped by a new high-speed HSPA network, Pelephone's subscriber base grew 4.5% to 2.789 million in the first quarter.
