IASPS
Quarterly Report
Summer 2000
Water Water Everywhere and Ne a Drop to Drink
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The Internet/Telcom Corner
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The Internet/Telcom Corner
The Communications market Will be Open to Competition "Within the Next Few Days"
By Amir Etzioni
Haven't you heard?
"Within the next few days, I will be signing regulations that will open the telecommunications sector to competition." These words were spoken in the Knesset on January 4, 2000, by Benjamin
Ben-Eliezer, the minister of communications.
"The vision of affordable Internet in every home will become a reality in Israel, as in the rest of the world, through advanced technologies that will soon be available to the Israeli public [following the opening of the market to competition - A.E.]". These words were spoken at the annual convention of the Israel Internet Association on February 16, 2000, by the minister of communications.
"Within the next few days," "within the next few weeks," "soon" and other vague forecasts have become the only indicators for the Israeli public as to what is being planned by the regulatory authorities regarding the opening of the communications market to competition. The last time the government actually set an exact date for the
long-awaited event was in June 1999. As the government didn't meet this deadline or the preceding January 1999 deadline, it decided to adopt a new strategy.
Since in any case there is no significance to the dates set by the government, there is no point in creating false expectations among the public. It is much simpler to give forecasts that do not really commit to any specific deadline. Thus, for example, the minister of communications promised that in January he would sign regulations that would introduce competition into the market within the next few days. Two hundred days have passed since then and who is to say that "the next few days" is not actually four hundred days?
Guess How Long
Therefore, ladies and gentlemen, we can state: the Israeli communications market will be opened to competition within the next few days. The reader is free to guess how long "the next few days" will be.
In order to assist our readers, we note that Alex Weissman, the assistant director for economics at the Ministry of Communications, was quoted on the subject in
Ma'ariv on July 31, 2000. He stated that until the completion of the introduction of competition into the communications market, the Ministry of Communications "is considering the possibility of making things easier for [the state telephone monopoly] Bezek by facilitating the hiring of new employees, allowing flexibility in public tender regulations, flexibility in investments...."
Anyone who does not understand how this statement explicates the term "in the next few days," is not familiar with the long and complex bureaucratic processes required for changing the terms of public tenders, the employment regulations of government companies, and implementing the other changes recommended by Mr. Weissman. Those who are familiar with these processes understand that months of work are required. Thus the next few days become ``the next few months,'' at least.
All in Favor
It seems that Mr. Weissman has solid grounds for his estimate of the time required. He knows that there is no technological barrier preventing the opening of the market to competition. The only problems are the interminable arguments between the various government ministries, all of whom are vying to control this sector. Not surprisingly, they all claim that they are in favor of opening the market but that the other ministries are unwilling. They even claim that this issue is at the top of their agendas. Despite all this, the frighteningly slow pace of discussion only confirms the disgraceful reputation that the government has earned for itself.
Therefore, ladies and gentlemen, you will have to remain in suspense. The assessment "within the next few days" will likely be published again in the next Quarterly. It is anyone's guess when this column will be able to report that Israel will join those countries with a competitive communications market, where fast Internet connections are not science fiction and the communications consumer is at the center of the picture rather than at its margin
About the author:
Amir Etzioni is an IASPS Koret Teaching Fellow who has become one of Israel's leading experts and commentators on the Internet infrastructure in Israel. His
professional work in this area started as a Koret Fellow during his internship with Member of Knesset Michael Eitan. Mr. Etzioni publishes widely in journals and newspapers on various matters relating to the Internet and has been a keynote speaker at Internet conferences. Given the Institute's move into the Internet Age, we feel it fitting to provide our readers with an ongoing analysis of Israel's struggle to find its way into the New Internet Economy
