Executives at Bezeq can only reflect back on the good old days when the phone company was a monopoly, when clients said “thank you” after waiting unreasonable periods of time to have a phone installed.
With deregulation and the government opening the communications marketplace, Bezeq continues to drop in the number of clients and earnings. Bezeq in Q3 dropped 30% in the profit column and 15% in overall income.
Bezeq officials explain that cheaper phone rates and competition have created a new marketplace, especially with cellular providers offering monthly unlimited package deals, which include calls abroad. Bezeq executives explain the cellular market is what really hit the company, reporting profits at the end of the third quarter of 342 million NIS, as compared to 550 million NIS at the end of Q3 in 2011. Company executives predict earnings for 2012 will reach 10.5 billion NIS, adding the company is already in the process of streamlining.
(YWN – Israel Desk, Jerusalem)