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Re: Bezeq to Cut FR Prices!



Hi there..
Do not be so optimistic, Bezeq is going (if the MOC will let them) to rise
the frame relay prices by at least 40% in the next 2-3 years.
so beware.. :)



At 10:33 PM 7/6/98 -0200, you wrote:
>Slashdot is not going to write about it (and even Maariv/Yediot/
>HaArerz still didn't hear about that, as well as Reshet or Anashim
>U'Machshevim...), but I think this scoop will interest many of you:
>
>As you all know, Med-1 (or "Lev"), the new 20Gb international line
>of Israel, will be completed in 2-3 months (currently, there is
>only a 1Gb line, in which about half is spent on telephony). Since
>international lines are the main cost of most of the ISPs, they
>already began to cut the prices, and in the last months - even of
>frame-relay connections (e.g. ISDN-NET cut the price of minimal
>64Kb from $400 per month to $180). All of these facts are known to
>all of us.
>
>But the ISP's price is only one part of the image. The other part
>is the payment to Bezeq ($110 per month for the minimal 64Kb, +$25
>for low CIR - 19.2, etc.). Bezeq didn't change prices for a long
>time (I think about two years!). The new line, does not have any
>impact; moreover, it could even cause Bezeq to higher the prices,
>because of the higher demand.
>
>So here is the scoop that will save hundreds of Shqalim (per
>month!) for many of us: In a way of "Hafuch Al Hafuch", Bezeq is
>going to cut the prices of frame-relay DRASTICALLY, in September
>1998. Bezeq believes that it will loose niches of the telephony
>market because of the opening of the market for competition. So
>Bezeq is going to invest in areas that nobody can compete against
>it. One of these areas, is the infrastructure of Bezeq. Frame-relay
>needs much infrastructure, and Bezeq believes that by lowering the
>prices, most of the companies and the business in Israel will order
>it, and nobody except for Bezeq will be able to supply the demand.
>
>The following claim is only a speculation, but I think that there
>is a strong connection between this plan of Bezeq, and its fight
>against acTVnet: The main enemy of Bezeq in this revolutionary plan,
>is the ability to order one frame-relay, and to multiplex it to more
>than one customer, or to use radio "lines", and these two ways are
>used by acTVnet in order to have prices which are much lower even in
>relative to the prices Bezeq will have after September.
>
>-- 
>Eli Marmor
>
>
>

Michael