Internet Market Drama: The split between provider and infrastructure will be eliminated starting in 2022


Ministry of Communication Announces its intention to eliminate the online split between provider and infrastructure starting in 2022. In the last hour, the Ministry of Communications publishes a hearing for public comments, at the center of which is the ministry’s intention to cancel the split, subject to a series of conditions that will be imposed on Bezeq and Hot.

The determining day (1.1.2022) is set to allow all ISPs to prepare for the service delivery through the wholesale market policy used today, according to which ISPs offer customers a service that includes infrastructure and a provider in one invoice, so that the customer does not “know” the infrastructure company and all services receive From the supplier.

The Ministry of Communications states in its position paper that the current split, which was determined in 2000, causes damage to the public in the amount of NIS 50 million per year, beyond the problems it creates in that customers are confused and do not know in an orderly manner from whom they receive the Internet service. .

According to the ministry, the planned change will lead to a significant improvement in the service that the end consumer will receive in the areas of the Internet, by providing the possibility of creating a “single address” for the provider and infrastructure services. In addition, the reform will address once and for all the “disclaimer” phenomenon made possible by the separation between the infrastructure provider and the ISP provider in the event of malfunctions, which will oblige the company providing the services to the subscriber to meet a higher service standard.

The firm has set a number of restrictions that will prevent Flash and Mehot from using their power on the way to getting the license to provide Internet directly to their clients. Therefore, it was determined that the process of moving to the new regulation will be gradual, in order to allow ISPs to prepare for change, and prevent large infrastructure companies (Bezeq and Hot) from exploiting their structural advantages and transfer consumers to a unified service, which will significantly hurt small ISPs in general and strengthen The monopoly power.The change will not apply to the business sector, since the supplier segment produces a unique value and the Ministry estimates that there are benefits to this diagnosis in this sector.

Communications Minister Yoaz Handel said: “The reform is intended to correct the current structure of the Internet market. After 20 years, it is time to put an end to the split between provider and infrastructure and create one product called” Internet “One address for installation and troubleshooting, end-to-end warranty, dual subscription “.

Director General of the Ministry of Communications, Liran Avishar Ben-Horin: “The Ministry of Communications is launching a reform that will dramatically change the way Internet services are consumed in the State of Israel and facilitate the transition between Internet providers, splitting between provider and infrastructure.

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