Business Services Industry
Bezeq promises lower long distance rates. (Bezeq The Israel Telecommunications Corp., telephone rates) (Brief Article)
Israel Business Today, November, 1994
Bezeq The Israel Telecommunications Corp. announced that it will reduce its long distance rates by 49 percent. It claims that the decision was made by the company itself and not a ruling that was imposed upon it. Bezeq said that it already loses money on every long distance call from Israel because the customer's rates are lower than the amount Bezeq pays to companies that transfer the calls overseas. It is obvious that Bezeq is cutting its profits in order to deter competitors from entering the Israeli telecommunications market.
Last month, there was serious talk of introduction a firm to compete with Bezeq in long distance telecommunications. The discussions were based on studies showing that competition this sector results in lower rates and specialized...
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