JERUSALEM, May 13 (Reuters) – Bezeq Israel Telecom (BEZQ.TA), opens new tab has begun to deploy a fast-speed Internet subsea cable aimed at connecting Europe to Asia that its chairman says could ultimately reduce dependency on the Strait of Hormuz.
Some 17% of global broadband goes through Hormuz, mostly from Qatar and India, and the new cable project would “solve some of the congestion that some of the Gulf countries currently have in the Strait of Hormuz,” Tomer Raved, Bezeq’s chairman, told Reuters after reporting quarterly financial results.
Deployment of the more than 400-terabyte cables will take two years and Bezeq will soon announce a European partner in the 500 million shekel ($172 million) project, with two more subsea cables to be launched later this year, he said on Wednesday.
“It positions Israel as the digital backbone, not just of the region, but globally, given the need for more connectivity in the region and between the different continents,” Raved said.
Iran has warned that submarine cables in the strait were a vulnerable point for the region’s digital economy. Several fibre-optic cables snake across the strait’s seabed, connecting countries from India and Southeast Asia to Europe via the Gulf states and Egypt.
Raved said it was unlikely these cables would be damaged since they are owned by a consortium of countries and telecom companies in the region, including from Iraq, Saudi Arabia and Oman.
Still, “you always need to have redundancy and backup routes,” he said. “The European continent needs to connect to Asia in general, and India specifically.”
Bezeq, Israel’s largest telecoms group, said on Wednesday it earned adjusted net profit of 300 million shekels ($103.25 million) in the first quarter, up from 288 million a year earlier.
Core revenue, which excludes fixed line telephony, rose 2.6% to 2.03 billion shekels.
The company maintained a projection of adjusted net profit of 1.0 billion to 1.1 billion shekels in 2026, versus 1.09 billion in 2025. Adjusted earnings before interest, taxes, depreciation and amortisation would be 3.74 billion to 3.8 billion shekels this year, largely flat from 2025.
U.S. Secretary of State Marco Rubio said Tuesday negotiations may take a few more days.
Its fibre network deployment has now ended by reaching 3 million homes, with 1.04 million of them as subscribers. It holds a 50% market share.
Article written by Steven Scheer at Reuters
Israel’s telecom sector continues to demonstrate its strength in advanced digital infrastructure. Bezeq’s fibre growth and new Europe Asia subsea cable highlight Israel’s role as a serious connectivity hub, offering Australian stakeholders a useful opportunity to explore partnerships, innovation and future opportunities across telecom, network resilience and secure communications.
For information about Israel’s telecommunication technology, please reach out to Lachlan Corne – Lachlan.Corne@israeltrade.gov.il
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