Bezeq CEO Predicts Israel Will Become Key Hub for Global Communications Infrastructure
Nir David, CEO of Bezeq, discussed Israel's telecommunications infrastructure and future growth prospects in an interview at the National Economic Conference hosted by Calcalist, Bank Leumi, and Clal. He emphasized the critical role of communication infrastructure as a national asset, especially in the era of artificial intelligence, requiring robust networks to support rapid technological changes. Over the past nine years, Bezeq invested more than 10 billion shekels in fiber optic infrastructure, placing Israel among the top ten countries with the fastest internet speeds globally. Despite higher mobile network costs, Israel's overall communication prices remain among the lowest in the OECD.
Bezeq currently reaches three million households with fiber optic connections, achieving a 36% take-up rate, which David described as remarkable. Internet consumption has increased tenfold in five years, driving revenue growth. Looking ahead, Bezeq aims to expand through undersea cable projects that will position Israel as a significant international communications hub. These cables will connect Israel directly to Europe, providing an alternative to vulnerable routes through Bab el-Mandeb, Tiran, and the Suez Canal. This infrastructure will support global internet traffic between East Asia and the West and facilitate the growth of data centers, including partnerships with companies like Nvidia.
David highlighted Israel's strategic advantages for attracting international data center investments, including its location and cybersecurity expertise. Bezeq has established a growth forum to explore future investments in these areas. Regarding company management, David noted that since Searchlight Capital sold its controlling stake less than a year ago, Bezeq operates without a controlling shareholder but continues to follow a strategic plan developed two years ago. The company has strengthened its management team, reduced debt, and achieved over 35% core revenue growth in five years.
On market competition, David addressed Bezeq's inability to offer bundled TV and internet services due to structural separation regulations. He said a significant interministerial team led by the Ministry of Communications, Ministry of Finance, and Competition Authority is currently examining the issue. David supports removing structural separation to reduce communication costs, allow Bezeq to compete effectively, and enable consumers to benefit from bundled services and lower prices. The committee is expected to present findings soon, though a final decision may be postponed until the next Knesset session.
