Bezeq’s success shows the value of a strategic focus on home Wi-Fi routers and services

Bezeq is the incumbent and largest operator in the increasingly competitive fixed broadband market in Israel. However, the size of its retail subscriber base had started to decline due to an increase in the number of competing FTTP networks, changes in wholesale broadband regulation (which have squeezed Bezeq’s revenue) and regulatory constraints that limited its ability to bundle services together. As such, Bezeq needed to formulate a new winning strategy for the retail fixed broadband market. In this article, we examine how Bezeq has successfully focused on home Wi-Fi as a differentiator, and we analyse the implications for other operators.