Former Shin Bet Official Transforms Struggling Telecom Firm into Billion-Dollar Giant
Translated & summarized from Globes by baba
Yossi Haber, a former Shin Bet official, has led IBC, a national fiber optic project, from near bankruptcy to a valuation of over $600 million USD. The company's success is attributed to strategic partnerships and a focus on infrastructure development, significantly improving Israel's internet speeds and accessibility.
The story in 5 lines · by baba
- Former Shin Bet official Yossi Haber revitalized IBC, a national fiber optic project.
- IBC's valuation has soared to approximately $600 million USD.
- Israel now ranks 11th globally in internet speed due to fiber optic expansion.
- The company operates on a wholesale model, serving various internet providers.
- IBC aims to expand its services into the business sector.
A former Shin Bet official, Yossi Haber, has been credited with orchestrating a remarkable turnaround for IBC (formerly Israel Broadband Company), a national fiber optic infrastructure project. Launched in 2013 to boost internet speeds and competition in Israel's then-stagnant fixed-line market, IBC struggled with debt and neared bankruptcy.
The turning point came in September 2020 when HOT joined IBC as a partner, coinciding with a renewed push by Bezeq to expand its own fiber network. This ignited a significant infrastructure race, transforming Israel's internet landscape. According to Ookla, Israel now ranks 11th globally in internet speed, with nearly every home accessible to fiber optics.
Haber, who transitioned from finance roles at HOT after his time in security, became CEO in January 2022. Under his leadership, IBC has achieved a valuation of approximately 2.2 billion shekels (over $600 million USD). A recent deal involves investors, led by The Phoenix and investment house Mor, acquiring the remaining 30% of the company for about 370 million shekels, bringing their total ownership to 100%.
Despite its significant valuation and national infrastructure reach, IBC employs only 60 people. Haber emphasizes that the fiber optic market differs from the mobile sector, where aggressive price wars led to lower quality. He argues that the high cost of deploying and maintaining physical infrastructure necessitates sustainable pricing to ensure continued investment and service quality. IBC operates on a wholesale model, providing its network to internet service providers like Cellcom, HOT, and Partner, rather than selling directly to consumers.
Looking ahead, IBC aims to disrupt the business market, which has been dominated by Bezeq for decades, by offering its fiber infrastructure to small and medium-sized businesses. The company recently acquired Internet Rimon's fiber infrastructure, further expanding its reach and solidifying its position as a key player in Israel's digital transformation.