Talking positively: Established in 1984, Bezeq is one of the largest providers of communication services in Israel and a major cornerstone of the telecom industry.

The companies that comprise the Bezeq Group offer a full range of telecom services – domestic and international, fixed and mobile, high-speed Internet, data communications at various speeds, transmission, broadband and more.

Bezeq’s wireline infrastructure comprises a fully-digitalized network, 2.8 million access lines and over 25,000 km of fiber-optic lines. The company has built a network for ADSL broadband and other services, thirty-six, 400 gigabyte DWDM ring systems and launched an IP network for IPVPN services.

In reviewing the past year in Israeli telecommunications, TLV Insider asked Alan Gelman, CFO and deputy CEO of Bezeq to share his thoughts and observations on several issues:

Bezeq has reinvented itself as a major player in all aspects of the communications field. With so much crossover these days between media, is there a danger of one revenue center eating away at another?

No doubt we are already seeing a changing revenue landscape, as Cellular revenues worldwide and in Israel are growing at the expense of fixed line revenues.  As a group, with a major presence in each major area of the communications landscape in Israel, Bezeq has managed to increase its group revenues year over year since the company was privatized in 2005.

2009  was an exceptionally difficult year and yet Bezeq thrived, registering very favorable results. How do account for this success on the background of so much economic mayhem?

Undoubtedly, the end of 2008 and 2009 were difficult for the world economy, and even though Israel outperformed, we were not insulated from the general downturn worldwide. Nevertheless at Bezeq, we improved on all our financial performance parameters, by concentrating on efficiencies and executing a strategy focused on the changing needs of the communications customer.

Bezeq has grown to be the most significant player in the broadband market. What can the company do to maintain its leadership in the ADSL field and how is it positioned to deal with competition from cable, satellite and other providers in the access market?

We were the first to lead the wireless access revolution in Israel and our current endeavors position us to compete quite favorably as we move to the next phase. Over the past year, we’ve been actively deploying our NGN infrastructure all over the country. This network is poised to totally transform the local communications landscape and launch an era of ultra-speed Internet access services and advanced IP telephony services. In addition, and as part of the company’s strategy, we’re offering a very diverse selection of value added Internet services and end-user products that reflect the inherent technological capabilities of the new system. In this manner, we have really become an end-to-end provider of solutions for our customers throughout every link in the delivery chain, from the network infrastructure and down to the modems and laptops that sit on your desk at home.

The roll out of Bezeq’s NGN network has been far more in the public eye than any other infrastructure upgrade that the company has initiated in the past. What is it about creating a buzz this time around that seems so important to Bezeq?

NGN is one of the largest infrastructure projects to be undertaken in Israel in recent years. In order to further establish our leadership reputation in the communications market, it was important to convey to the public the enormity of this project and the potential impact it will have on our everyday lives. Moreover, we wanted to position NGN as a sort of stand-alone sub-brand of Bezeq. By launching an extensive campaign, we hope to inform the public at large of the strength and diversity of the network and also send a message to our partners in the ecosystem that the revolution is here, it’s real and it’s time to get on board and develop the equipment and applications that will make it a success.

“At home, speak with Bezeq” is an entertaining series of commercials showing everyday people arriving at home in the midst of a conversation on their mobile phones only to quickly “hang up” in order to call back on their regular Bezeq lines. As clever as the campaign is, doesn’t it in essence send a message that cellular communications have indeed taken over? Are we witnessing the final decline of traditional telephony?

There’s a decline all over the world in the use of wireline telephones and in this respect Israel is no different. Bezeq can’t disregard this phenomenon and should do everything it can to diminish its effect.  The campaign is our way of strengthening the position of standard telephone usage in the home environment in the public consciousness.

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