Speaking to Globes news editor Bar Lavi, Bezeq Chairman Tomer Ravid spoke at the Globes Israel Business Conference about the company’s investments in infrastructure since the beginning of the war, competition in the telecommunications market, and Israel’s position as a geographical bridge between… East and West. .
Lavie said that while Ravid was only 40 years old, as an investment banker he had already advised giants such as Google and Disney, closing deals worth $500 billion. Since 2020 he has been CEO of Bezeq, Pelephone Weiss.
You’ve just returned from a trip around the world, what are you hearing from foreign investors?
In general, Rafid is optimistic. “Over the past two decades, we have seen more and more foreign investors coming to Israel because they see that, so far, we know how to deal with crises better than any other country,” he said. “We also have great human capital, and there is macroeconomic stability here. Even in the pessimistic scenario, we would only have a 70% debt-to-GDP ratio. Geography plays a role here at both the macro and micro levels. Even during the Covid period, we saw the market The Israeli is developing.”
According to Ravid, the period when investors actually hesitated was not in the aftermath of the war: “We saw investors sitting on the sidelines in the year leading up to October 7th specifically, because of the political instability. And in fact, over the last year, they realized that the recovery had happened.” “. We are on the way to a regional arrangement, and we have a position that connects the East and the West, unless you think that Lebanon and Syria are options…”
“The Israeli economy surprises again every time.”
Lavi commented on Ravid’s optimism. He replied: “My expectations are optimistic, because I listen to prominent figures in the business world here and abroad. I say to the American and Israeli governments: There is only one direction, a hostage deal followed by a regional arrangement. This will lead to an agreement.” Increase the market from 10 million to 100 million people.
“We completed a cable connection project from Saudi Arabia to Europe before October 7. There are opportunities here for all sectors of the economy, from transportation to communications. We saw that in the Abraham Accords, and we will see this too.” In “The Agreements of Abraham, Isaac and Jacob.”
“The Israeli economy surprises us all again every time. No one would have imagined that the shekel would be stronger after the downgrade than it was on October 6.”
How did Bezeq deal with the past year?
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“We were in the investment phase in the fiber optic project. We invested NIS 10 billion over 5 years. Our network experienced a boom on October 7, which was a peak for many years, and the network survived.
“Since October 8, we have invested more than 2 billion shekels in infrastructure, at the same pace and more, because we understood that Israel’s need in the near future is exponential growth. We have 10,000 employees, 1,000 of whom are reserve. We support them in rebuilding the infrastructure that is under fire on Throughout the year in all sectors, segments and population areas, infrastructure reconstruction work and reservist activities will continue in the short and medium term.”
A bridge between East and West
Our position in terrestrial Internet is excellent, in 10th place globally, while in cellular we are in 66th place. How do you explain that?
“We were in 80th place and have reached 10th place in landlines. Soon we will be in 8th place,” Ravid promised. “We have invested in fibre, 60% of the population has already switched to fibre, and I hope the entire public will be connected. We are after a lost decade of cellular telephony which has only begun to recover in recent years. With the introduction of 5G we will deliver results, and in every element of Communications, technology and artificial intelligence elements, we need to be leaders, and we will also advance in cellular communications, slowly.
The TV market is about to revolutionize, and there are potential mergers. Where will the market be in a few years?
“The TV market is competitive. Telecoms in general, in terms of cost to the consumer, are among the lowest in the world. There is a healthy rise in competition and sharing of infrastructure, and fewer mergers. This is a development consistent with what is happening in the United States, We see complete integration in the market in Israel, which is a competitive and rational market and the lack of competition in the past led to a lack of investment in infrastructure, but this is no longer the case.
Ravid stressed the importance of communications infrastructure: “We are the infrastructure for everything – the emerging country, the connection to the world, and the screen to which we are glued all day. This made us invest in the network as much as possible, because the goal is good, and this is what will allow Israel to be the bridge between the East and In the West, many private business companies cannot say that they invested 10 billion shekels in infrastructure without support or recovery.
The Globes Business Conference in Israel is held in cooperation with Bank Hapoalim and Phoenix Holdings, and is sponsored by El Al, Bezeq, Nespresso, Walt, Dell, the Israel Medical Association, Energean, the Jewish National Fund, BlackRock, Playtica, Meta, Strauss Group, Bazin Group, Inc. MSCI, with the participation of Mekorot, the Port of Ashdod, and the Israel Innovation Authority.
Published by Globes, Israel Business News – en.globes.co.il – on December 8, 2024
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