JERUSALEM, July 30 (Reuters) - Bezeq Israel Telecom

on Wednesday raised its 2025 profit outlook after

Israel's telecoms regulator announced plans to cut wholesale

fibre optic costs and ease Bezeq's obligation to provide

internet services over fibre to key competitors.

Israel's largest telecoms group revised its adjusted net

profit estimate for 2025 to 1.45 billion shekels ($432 million),

up from 1.32 billion shekels projected in May. It also increased

its forecast for earnings before interest, taxes, depreciation,

and amortisation (EBITDA) to 3.85 billion shekels from the

previous guidance of 3.75 billion.

Bezeq said the increase stemmed from a higher valuation of

its Internet and television unit Yes following a Tuesday

announcement by the Communications Ministry aimed at reducing

internet costs.

The company said the "significant accounting gain" for the

fair value of Yes would be recognised in the third quarter of

2025.

Bezeq earned 1.27 billion shekels in 2024 and is expected to

issue second-quarter earnings next week. The telecoms operator

said it was on track to complete the rollout of its fibre-optic

network, reaching 2.9 million homes this year, up from 2.7

million in May.

At that time, the company had 885,000 fibre subscribers and

its chairman, Tomer Raved, told Reuters that Bezeq would soon

reach 1 million.

The Communications Ministry plans to cut fibre Internet

wholesale costs by more than 30% to boost competition and lower

household internet prices, especially for fibre-based services.

While Bezeq will still be required to provide its network to

rivals, including Partner Communications and Cellcom

until 2027, in 2028, this obligation will largely end.

One exception is cable company Hot, owned by Altice, which

has older infrastructure.

Elad Makdasi, the ministry's director general, said the move

would transform the telecoms market by incentivising independent

infrastructure deployment and ensuring long-term competition

"which will promote innovation, quality service, and attractive

pricing for years to come."