Woman with iPhone 311.
(photo credit: Marc Israel Sellem/The Jerusalem Post)
The freedom to choose a mobile carrier got new meaning on Monday with the coming
into effect of the law abolishing exit fines, effectively annulling the concept
of commitment to a company.
Mobile carriers’ new subscribers and
subscribers who signed contracts since November 2011 will no longer pay a fine
for leaving the carrier. Older subscribers will pay 8 percent of their average
monthly bill times the number of months remaining in their
However, the mobile carriers can continue to charge for
equipment sold, such as cellphones, as well as for subscribers’ accumulated
The new law, like other consumer amendments in the
telecommunications industry, applies to private customers with up to 100 lines.
A customer that receives service for more than 100 mobile lines will be required
to pay the carrier pursuant to the terms of the contract.
step is part of the consumer measures that the Communications Ministry and
Communications Minister Moshe Kahlon are taking to lower the barriers to
switching between carriers and to increase competition and transparency for
customers. Measures implemented to date include the reduction of inter-network
connectivity fees, the reduction of commitment periods to carriers and
restrictions on providing added-value services without the customer’s
Last November regulations came into effect canceling exit fines
for current subscribers in all telecommunications segments – cable and satellite
television, Internet service providers, fixed-line telephony and international
calls – after fines for new subscribers at all the carriers were canceled last