Bezeq Poised to Merge with Yes, Shake Up Telecom Market
Translated & summarized from TheMarker by baba
The story in 4 lines · by baba
- Bezeq and Yes may merge after 20 years of structural separation.
- The government is considering lifting separation rules.
- Bezeq could offer TV services and boost profits.
- Bezeq's internet customer share has fallen to 35%.
Bezeq, the Israeli telecommunications giant, is reportedly on the verge of merging with the satellite television provider Yes, a move that could significantly alter the country's communication landscape. This potential merger comes after approximately 20 years of opposition and follows a decline in Bezeq's internet customer base to a 35% market share. Discussions between representatives of the Ministry of Communications, the Ministry of Finance, and industry players in recent weeks indicate a developing government stance that the current competitive environment permits the removal of the structural separation between Bezeq and Yes.
If approved, this change would allow Bezeq to offer television services for the first time, a capability previously restricted due to the separation mandate. Industry analysts suggest this integration could also lead to a substantial boost in Bezeq's profit margins. The timing of these developments, just before elections, adds a layer of political significance to the potential industry shake-up.
