The Finance and Communications Ministries gave Bezeq the green light to update its tariffs Wednesday, which will effectively lower the phone company's rates by between 2 percent and 3%. Bezeq said the new tariffs would take effect July 1, coinciding with the 1% drop in value added tax (VAT), "which will also change consumers' telephone bills for the better," it said. The biggest change will come in the company's installation charges which will drop 19% from NIS 285 to NIS 230 (including VAT). Calls made during the day will cost 1% less at 11.9 agorot per minute (including VAT) instead of the 12 agorot fee currently in place. Bezeq's night rates will be 2% lower at 4.9 agorot per minute, down from 5 agorot. Also, the connection fee for calls made to cellular networks will drop from 6.9 agorot to 6.7 per call. The monthly fee for having a Bezeq line, however, will cost users 50 agorot more from July to NIS 49.9 per month. Bezeq, which is being prevented by regulators from luring customers with special discounts in an attempt open the market to competitors, is allowed to drop its tariffs once a year based on recommendations made by the government-commissioned Grunow Committee in 2002. These recommendations are in effect through 2007.