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May 15, 2012

Moshe Kachlon Brings Cellular Prices Down Even More!

Moshe Kachlon of the Likud has been, in my opinion, one of the best ministers in the government.

In the upper tier of ministers I include Gideon Saar (education), Arial Attias (housing and construction), Moshe Kachlon (communications), Stas Maseshnikov (tourism) and maybe Yaakov Litzman (deputy health minister).

Moshe Kachlon has done a great job opening up the cellular market, in addition to the changes he implements in the cable systems and in the internet systems. He has forced the providers to bring down prices, and he has opened up the industry to more competition, forcing the providers to bring prices down even further.

Another two cellular providers have just joined the market, with initial offers at very cheap prices. Even Rami Levi, the king of discounting prices in Israel, has said that the new companies are offering very cheap and attractive rates. To compete, Pelephone and Orange have already announced that in the coming days they will offer new packages with much cheaper pricing options.

With all the protests and high prices keeping the cost of living very high, Moshe Kachlon has quietly shown that the way to solve the problem of high pricing is to open up the field to competition. Once there is a fair amount of competition, all the suppliers have to drop their prices to be more reasonable, otherwise they will lose the business. The other ministers controlling other industries and realms in Israel would do well if they looked at Kachlon's work as an example of what they should be doing..

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