Bezeq ups ISP recruitment fee by 150%

Israeli operator Bezeq has unilaterally raised the fee it charges ISPs for the customers it recruits for them by 150 percent from ILS 20 per customer to ILS 50, Globes reported. Some ISPs have notified Bezeq that they will not pay the fee, and Bezeq is threatening to terminate marketing for them in response. Bezeq has also announced that it will pay the same fee when ISPs bring customers to Bezeq, offsetting its own fee.

The fee for marketers is much higher than what Bezeq charges, sometimes exceeding ILS150, Globes reports. Several years ago, Bezeq asked the Ministry of Communications for a permit to sell combined ISP and infrastructure packages. A customer can go to Bezeq’s website and choose an ISP, which compete on price. This puts heavy pressure on the ISPs, because Bezeq dominates the market. Small ISPs benefit, because they do not have to possess large marketing networks, but the system is not beneficial for big ISPs, because it gives Bezeq control of the customer.