Bezeq bets on fibre optic for growth
Bezeq Israel Telecom is rapidly deploying its fibre-optic network in the country, and expects the infrastructure to be a main source for growth for the company, Reuters reports.
The leading Israeli telecoms operator posted a 14% increase on its Q2 profit, and the company told reporters yesterday that this figure was largely fuelled by a growth in internet customers.
The fibre-optic network deployment is well underway and already connects 200,000 households. Bezeq expects this number to increase to over 400,000 by the year end.
Acting as rival to Bezeq, the Israeli government created a group, comprising of Sweden's Viaeuropa and state-utility Israel Electric Corp (IEC), to build a nationwide super-fast fibre optics network.
Analysts have raised concerns over Bezeq’s predicted growth and expect the company may be forced to lease infrastructure to competitors as the market changes, something Bezeq addressed last November.
Sabina Podval, analyst at Leader Capital Markets, said: “Due to expected changes in the sector and regulatory threats, the stock price is not low.”
Internet connectivity in Israel seems to be of a particular focus this year and in April Nokia Siemens Networks launched a mobile broadband initiative in the country.