Inter-network cell phone tariffs to fall 74% by 2014

Minister of Communications calls current practice "a disgrace" following an examination of pricing model.

By JPOST.COM STAFF
September 2, 2010 12:52
1 minute read.
A  cell phone user [illustrative]

Cellphone user 311. (photo credit: Ariel Jerozolimski)

 
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Minister of Communications Moshe Kahlon has announced that the cost of calls between different cell phone networks will fall by 74% by 2014, from 25.1 agurot to 5.55 agurot a minute. SMS costs between networks will also go down from 3 agurot to 0.13 agurot.

The legislation was announced at a press conference in Tel Aviv on Thursday. The reduction plan will begin on January 1, 2011.

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Kahlon noted that the cell phone companies would be unhappy with the news, and said that they had hoped for a change in government before such legislation was implemented.


"We will not allow it any longer. The consumer will pay as much as he should pay," he said.  "If prices are raised, the goverment will intervene."

The minister had more sharp words for the cell phone providers, calling previous practices "a disgrace."

The announcement followed a comprehensive examination of the current pricing model and network costs. It is estimated that cell phone company profits will eventually drop by 25%-30%.

As a consequence of the legislation, new virtual operators will be able to enter the market.

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