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Israel's Bezeq to lose local telephone monoply

Israel, which leads the world in cellphone usage, boasts dozens of cutting-edge telecom manufacturers and enjoys the Middle East's highest penetration rate, still suffers from one major deficiency: a monopoly on its basic local phone service.

However, that situation could soon come to an end. Late last year, the Knesset Finance Committee gave preliminary approval to draft regulations submitted by the Ministry of Communications that would open the domestic phone market to competition for the first time since 1948 - ending the fixed-line monopoly long enjoyed by the giant Bezeq Israel Telecommunications Corp Ltd.

The move followed a ruling last April by Israel's attorney general, Elyakim ...

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