Bezeq objects to structural distinction from Bezeq Int'l - TheStreet

Bezeq objects to structural distinction from Bezeq Int'l

Phone company favors accounting distinction, wants influence over use of Bezeq resources by subsidiaries
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Bezeq objects both in principle and in practice to the regulator's demands from several years ago for structural distinction," the state-run phone company's CEO, Ilan Biran, said today.

Bezeq is in favor of an accounting distinction, as customary in other countries worldwide.

Biran was responding to Ma¿ariv's report that the Communications Ministry is positively considering to abolish the structural distinction between Bezeq and its subsidiary international calls subsidiary Bezeq International.

The paper said that the move is planned for early 2003, when the ministry hopes to fully open the international calls market to competition, and in light of the expected merger between long-distance calls providers Golden Channels and Barak, and their eventual merger into the new merged cable television entity.

Biran said that responsibility without authority is impossible. He added that Bezeq's subsidiaries are an integral part of Bezeq, which has invested many resources in them and continues to do so. He ruled out the possibility of a situation where Bezeq will not be able to directly affect the distribution and management of resources, or have an impact on the results of such investments.