Bezeq Reports Tripled AI Activity on Network, Revenue Impact Unclear
Translated & summarized from Bizportal by baba
Bezeq reported a threefold increase in AI-related activity on its network among private customers in the last three months. The company provides the communication infrastructure for AI services, not the AI itself. While this surge highlights AI adoption, its direct impact on Bezeq's revenue is not yet clear, though potential opportunities exist for service upgrades. Bezeq also recently revealed its new underground cable tunnel infrastructure in Tel Aviv.
The story in 5 lines · by baba
- Bezeq's AI activity on its network has tripled in the last three months among private customers.
- The company provides the communication infrastructure for AI services, not the AI models themselves.
- It is unclear if the surge in AI activity will directly increase Bezeq's revenue or profitability.
- Bezeq sees potential opportunities to upgrade services and increase revenue from growing AI demand.
- Bezeq recently unveiled its new 10-kilometer underground cable tunnel infrastructure in Tel Aviv.
Bezeq, an Israeli telecommunications company, has reported a threefold increase in artificial intelligence (AI) related activity among its private customers over the past three months. This surge highlights the rapid adoption of AI tools by end-users. Bezeq's role in this AI revolution is indirect; the company provides the essential communication infrastructure that connects users to AI services like ChatGPT, rather than developing AI models or leasing graphics cards.
When a Bezeq customer uses an AI service, their request travels through the company's internet infrastructure to the servers hosting the AI model, and the response returns via Bezeq's networks. This is analogous to Bezeq providing a road while companies like OpenAI or Anthropic provide the engine. The reported AI activity encompasses increased use of chatbots, learning tools, personal assistants, and task planning applications.
Bezeq has not specified how this AI activity was measured, whether by data traffic volume, the number of requests, or another metric. The company acknowledges that this growth does not necessarily translate to an increase in overall network traffic or future revenue. However, Bezeq sees a potential opportunity: as AI usage expands, demand for faster internet connections may rise, allowing Bezeq to promote fiber optic services, sell advanced packages, and strengthen its business and data center communications.
Unlike cloud providers who can charge based on computing usage, Bezeq does not automatically earn more each time a customer uses an AI model. The company also recently unveiled its underground communication infrastructure in Tel Aviv, consisting of four main cable tunnels spanning approximately 10 kilometers at a depth of about 15 meters. These tunnels connect key service areas and are designed to ensure network continuity, especially during emergencies, by protecting communication cables and reducing disruption risks.
Bezeq CEO Nir Dodov stated that the AI revolution relies on infrastructure connecting computing centers, tech companies, and users, emphasizing its growing importance with increased AI adoption. While the surge in activity is a positive sign, its direct contribution to Bezeq's revenue and profitability remains uncertain. The company, as an infrastructure provider, benefits from the growing demand for digital services, but the key question is whether AI usage will prompt customers to upgrade their internet plans and spend more, or if the economic value will primarily accrue to cloud companies and model developers.
