Ministry of Communications Advances Major Reform to Cut Internet Prices
Israel's Ministry of Communications is launching a major internet market reform to slash prices to 80 NIS and introduce seamless provider switching, eliminating router rentals and technician visits.
The Ministry of Communications is advancing a sweeping reform in the fixed internet market aimed at lowering subscription prices and enabling seamless switching between providers, mirroring the historic mobile market revolution. Currently, a 2.5 Gbps internet subscription with Bezeq including a router costs 1139 NIS per month, while some customers still pay 180 NIS monthly for inferior copper infrastructure. The Ministry believes prices could drop to 80 NIS per month or even lower following the reform.
As a first step, the Ministry of Communications has issued a formal request for information to internet providers regarding tariffs, churn rates, and acquired customers. The initiative targets dormant consumers who overpay for years without changing providers. Although extensive fiber-optic deployment across Israel has created diverse infrastructure alternatives, officials note that infrastructure alone does not guarantee effective competition.
Public complaints analyzed by the Ministry highlight that switching providers currently involves losing workdays while waiting for technicians from both outgoing and incoming companies. Consumers also face logistical burdens, delivery costs, pick-up point hurdles, potential penalties, and the risk of double billing during the transition period.
The reform centers on the elimination of ongoing router rental fees, which typically add about 20 NIS per month indefinitely. Instead, consumers will purchase a universal router in a one-time transaction, retaining full ownership and freedom to use it across any provider. The Ministry plans to regulate standardized private equipment connectivity, enabling remote setup and self-service without technician intervention.
Furthermore, the reform introduces a click-to-switch mechanism similar to mobile number portability. Customers will contact only the new provider, who will manage the entire transition, coordinate disconnection from the old provider to prevent double billing, and eliminate technician visits. Regarding equipment returns, the logistical burden will shift to the outgoing company free of charge except for depreciation deductions, supported by a newly proposed technological clearinghouse for inter-provider synchronization.
