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Israel’s Communications Minister Shlomo Karhi has announced a significant reduction in wholesale market prices for fiber-optic internet services, a move the ministry says will enhance competition, lower costs for consumers, and improve service quality across the country.
Under the new regulations, major wholesale services used by internet providers will see a price drop of 30% to 40%, based on a newly introduced cost model specifically designed for modern fiber networks. This is the first time the ministry has implemented such a cost-based pricing mechanism for the wholesale fiber market.
The most immediate impact will be on the regulated rate that telecom companies pay to Bezeq, Israel’s largest telecommunications provider, for access to its fiber infrastructure through the Bitstream Access (BSA) service. The fee will fall from 72 NIS to 49 NIS per household for a 1-gigabit speed connection—marking a reduction of over 30%.
“The introduction of cost-based pricing is a breakthrough for Israel’s communications infrastructure,” said Karhi. “An open, competitive, and accessible communications market is key to reducing social gaps, promoting economic growth, and strengthening our national resilience.”
The Communications Ministry said the reform will especially benefit the fiber-optic internet sector, where prices have remained high due to limited competition and reliance on Bezeq’s infrastructure. By lowering wholesale costs, the government expects to incentivize smaller internet providers to expand their market share and pass savings on to consumers.
“In the coming months, we expect more competitive packages from various ISPs, translating into better service and pricing options for the Israeli public,” a ministry spokesperson added.
The move also aligns with broader governmental goals to ensure equitable digital access across the country. Karhi emphasized that geographical and financial disparities should not prevent citizens from enjoying high-speed internet.
“We will continue to increase competition in quality and price – until every citizen in Israel can connect to fast, high-quality and affordable internet, regardless of their geographical location or financial capacity,” he said.
Industry analysts suggest that while the pricing reform is a step in the right direction, its success will depend on how swiftly providers adjust their consumer plans and whether Bezeq adapts to the new market dynamics.
The reform comes amid global efforts to bridge the digital divide, as internet connectivity increasingly becomes a core component of education, commerce, and communication. With this move, Israel aims to position itself at the forefront of accessible digital infrastructure in the region.
