Bezeq chief executive Ilan Biran plans to step down in a month because of the delays in the company's privatization, say sources in the communications sector.

Although Bezeq's spokesperson said Biran is not leaving the company, a source in government circles told TheMarker that a candidate to replace Biran is the Gmul investment house's former chief executive, David Milgrom.

Milgrom had taken over at Gmul at the end of 2001. His resignation was announced six months later. Beforehand he had served as the treasury's budget director.

Biran was appointed as CEO two and a half years ago. At the time he stated that his primary goal was to privatize the company, which has a monopoly over Israeli domestic communications.

He even set a target date, saying that he would resign unless the company was privatized by August 2001.

In recent months Biran has shown his disappointment in the government's failure to progress with the company's sale. He has also expressed frustration with the regulators' inability to comprehend the company's needs.

During his 2.5 years in power, Biran stressed the need for the company to improve its efficiency while sustaining its profitability.

Bezeq is expected to report further decline in its revenues, when it releases its financial statements in August.