Following an appeal by Israel’s communications minister Moshe Kahlon asking for action on Israel’s mobile operators’ charges, the Knesset’s economic committee has moved to hit what Kahlon’s department call ‘an oligopoly’ from another direction.
The…
Following an appeal by Israel’s communications minister Moshe Kahlon asking for action on Israel’s mobile operators’ charges, the Knesset’s economic committee has moved to hit what Kahlon’s department call ‘an oligopoly’ from another direction.
The Jerusalem Post claims the Knesset will order Israel’s cellcos to cut their contract cancellation charges.
This will make it easier for users to switch mobile operating companies and hopefully stimulate competition in a sector dominated by three mobile operators – Cellcom, Orange Israel and Pelephone.
Kahlon, Israel’s communications minister told the Post that the exit fines charged by cellphone companies were the main barrier to competition in the market. He said that without the inability to switch between companies stifled competition and removing the ‘barrier of fines’ the consumer’s bargaining power would be increased.
The proposed new regulation would limit a customer’s exit fee to no more than 8% of a customer’s average monthly bill.
