Bezeq Israel Telecom has initiated the deployment of a high-speed subsea cable designed to connect Europe and Asia, potentially decreasing reliance on the Strait of Hormuz, which currently handles 17% of global broadband traffic. Bezeq’s chairman, Tomer Raved, indicated that this project would alleviate congestion faced by Gulf countries in the strait. The cable deployment, costing approximately 500 million shekels ($172 million), will take two years, with plans to announce a European partner soon. Two additional subsea cables are expected to be launched later this year.
Raved emphasized that this initiative positions Israel as a crucial digital hub, enhancing connectivity not only regionally but also globally. Despite concerns from Iran regarding the vulnerability of submarine cables in the strait, Raved expressed confidence in their safety, noting that they are owned by a consortium of regional telecom companies. He highlighted the necessity for backup routes to ensure reliable connections between Europe and Asia.
In financial news, Bezeq reported a slight increase in adjusted net profit for the first quarter, reaching 300 million shekels ($103.25 million). The company has completed its fiber network deployment, reaching 3 million homes, with a 50% market share. However, its mobile division, Pelephone, experienced a 33% drop in adjusted net profit amid ongoing regional tensions.
