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)
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7 Responses
I’m happy maybe now they will learn there lesson
Free market at its best.
I remember when you had to slip money under the table to a clerk to get a phone installed; those good old days are gone now. Thank G-d! Maybe they are getting their come back for years of corruption?
I hear that someone was aactually murdered by them for trying to compete
Now other things need to come down like cars
This is all smoke and mirrors. The management is overjoyed. They are doing everything they can to drop their percentage of the market. Once they are below, I think, 70% they will be able to offer a whole new range of services and jump right back up there in profits. In the mean time their shares are going down in value and being bought up by those who realize what is really going on.
Reichman, from Darkom