Landline phone service in Israel will become about 40% cheaper in the next two years, saving the public about NIS 400 million per year, the Communications Ministry announced on Wednesday.
The price of landline service is expected to drop from about NIS 50-60 per month to an average of NIS 30-40, saving households hundreds of shekels per year.
The policy change is expected to benefit the elderly and haredi (ultra-Orthodox) populations the most, as they are the main users of landline phones. The change in prices is based on the economic advice of Prof. Reuben Gronau and Dr. Ofer Raz-Dror, who found that Bezeq makes exceptional profits.
Currently, landline users pay a set monthly usage fee of NIS 49.50 plus six agorot per minute for calls to landlines, and 11 agorot per minute for calls to mobile phones.
The lowering of fees will happen in two stages. In April 2022, the set fee will fall to NIS 35, without any change in the charge for minutes. In the second stage in July 2023, the set fee will fall to NIS 24.36, including sales tax, and the minute fees will fall to 1.4 agorot per minute for calls to landlines and 7.4 agorot per minute for calls to mobile phones.
The last update to landline fees was implemented in 2003.