Bezeq Israel Telecommunication : Immediate Report - Hearing on the determination of a maximum rate for access to passive infrastructure and dark fiber service

Immediate Report - Hearing on the Determination of a Maximum Rate for Access Service to Passive Infrastructure and Dark Fiber Service.pdf668 KB

Re: Hearing on the Determination of a Maximum Rate for Access Service to Passive Infrastructure (Access Service to the Duct) and Dark Fiber Service

The following Immediate Report is hereby issued that on February 21, 2022, a hearing was published by the Ministry of Communications regarding the determination of maximum rates for access service to passive infrastructure (access service to the duct) and dark fiber service, pursuant to the provisions of Section 14 d(i) of the Telecommunications Law (Bezeq and Broadcasting), 1982, which provides that the minister is entitled to determine a reduced rate for the use of the Company's passive infrastructure in the incentive areas[1]and the service areas[2].

According to the hearing documents, in order to lower barriers and incentivize operators to submit bids for the incentive tenders and to encourage the supply of service in the incentive areas, the Minister of Communications is considering setting controlled maximum rates in the incentive areas and the service areasfor the following services:

• Access to passive infrastructure - NIS 108 per km per month (compared with a rate of NIS 409).
• Dark fiber service - NIS 195 per km per month (compared with a rate of NIS 501).

The hearing documents stated that as part of the new pricing process for all the wholesale rates scheduled for 2022, among others, setting the above controlled prices shall also be examined.

Based on initial review of the hearing documents, the Company believes that the process of setting the controlled prices is not expected to have any material direct financial impact. The Company is continuing to review the hearing documents and their implications.

For a link to the hearing documents in Hebrew as published on the Ministry of Communications website, click here.

Yours sincerely,
"Bezeq" The Israel Telecommunication Corp Limited

The above information constitutes a translation of theImmediate Reportpublished by the Company. The Hebrew version wassubmitted by the Company tothe relevant authorities pursuant to Israeli law, and represents the bindingversion and the only onehaving legal effect. This translation was preparedfor convenience purposes only.

[1]Areas in which the Company has chosen not to deploy an advanced network and where deployment will be carried out by other license holders.

[2] Other areas that are not Company deployment areas, and which are not used by the Company for the deployment of an advanced network, and the use of their service is for the purpose of deployment in the incentive areas.