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Right -- what ended up pushing the monopoly telco here (Israel) out of passive income was a few government regulations which then actually created competition:
by smileybarry 4y ago
Right -- what ended up pushing the monopoly telco here (Israel) out of passive income was a few government regulations which then actually created competition:
- Bezeq was forced to lease the VDSL infrastructure line to ISPs for a (low) capped price. Only the wholesale lease price to ISPs was capped, they could charge individual customers as they wish.
- Other ISPs were allowed to deploy fiber gradually and slowly but Bezeq's rollout had rural coverage requirements
This sounds intrusive but Bezeq was originally government-owned and most (if not all) of its infrastructure was paid for by taxes during that time. Once it was spun off into a private company, they kept all of the profits. So this was more reminding Bezeq their existing telco infrastructure was gov-funded.