Israel - Telecoms, Mobile and Broadband

Publication Overview
Executive Summary
Table of Contents

Publication Overview

This report provides a comprehensive overview of trends and developments in Saudi Arabia’s telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors. Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure;
Major players, revenues, subscribers, ARPU
Internet, IPTV;
Mobile voice and data markets;
Broadband (FttH, DSL, cable TV, wireless);
Convergence and digital media;
Broadband subscriber forecasts to 2020;

Companies covered in this report include:

Bezeq, Bezeq International, HOT, 013 Netvision, 012 Smile Telecom, Xfone 018/Marathon Telecom, AMOS, Walla!, Nana, Yes TV, Pelephone, Cellcom, Partner (Orange), MIRS, Golan Telecom, Telecom 365, Free Telecom, Rami Levi, Ituran, Alon Cellular, Home Center Mobile,

Researcher:- Paul Kwon
Current publication date:- December 2011 (10th Edition)

Executive Summary

Market uncertainty ahead for established players

Israel boasts one of the few markets in the Middle East with strong competition across all market sectors. Within the fixed telephony and broadband market telecoms incumbent Bezeq is losing market share to major cable TV operator HOT and alternative telcos. Much of this healthy competition has been made possible by a number of regulatory initiatives, initially the encouragement of infrastructure-based competition and later the development of a viable wholesale market. Unlike other Middle East markets the government no longer holds any significant stake in the incumbent and hence is able to focus on encouraging competition.

In the fixed broadband market healthy infrastructure competition exists between DSL and cable. Regulatory measures support a significant wholesale market. The incumbent is currently brining fibre closer to end users, reducing the amount of copper and boosting speeds. HOT has responded by implementing DOCSIS 3.0 technology to offer speeds of up to 100Mb/s. The two major players may be joined by a third in 2012 if a government proposal to introduce a fibre operator backed by the incumbent power utility comes to fruition.

Israel boasts four mobile network operators and very high penetration rates. 3G/HSPA networks support the operators’ push into the developing mobile broadband market. This has not stopped the government introducing more competition, recently awarding two 3G licences, removing early termination fees, further reducing mobile termination rates (MTR)s and introducing a number of MVNOs. Faced with such market uncertainty and to boost growth prospects the major mobile operators have recently merged with fixed line counterparts to offer integrated services.

1. Key Statistics
- 1.1 Country overview
2. Telecommunications Market
- 2.1 Overview of Israel’s telecom market
3. Regulatory Environment
- 3.1 Regulatory authority
- 3.2 Privatisation of Bezeq
  - 3.2.1 Earlier privatisation attempts
- 3.3 Telecom sector liberalisation in Israel
  - 3.3.1 Liberalisation begins
  - 3.3.2 Early moves towards fixed-line market liberalisation
  - 3.3.3 Kroll Committee
  - 3.3.4 Licences awarded to cable TV companies
  - 3.3.5 Further competition in the international calls market
  - 3.3.6 New domestic voice service licences and Bezeq’s reaction
  - 3.3.7 Licensing of VoIP/VOB
  - 3.3.8 Interconnect
  - 3.3.9 Gronau Commission
  - 3.3.10 Hayek Commission
  - 3.3.11 Alternative fibre network operator
- 3.4 Number Portability (NP)
4. Fixed Network Market
- 4.1 Overview of operators
- 4.2 Bezeq
- 4.3 Bezeq International
- 4.4 HOT telecommunication systems
- 4.5 013 NetVision
- 4.6 012 Smile Telecom
- 4.7 Xfone 018/Marathon Telecommunications
5. Telecommunications Infrastructure
- 5.1 National telecom network
  - 5.1.1 MedNet/Med-1
- 5.2 International infrastructure
  - 5.2.1 Submarine cable networks
  - 5.2.2 Satellite networks
- 5.3 Wholesaling
  - 5.3.1 Overview
  - 5.3.2 Naked DSL
6. Broadband Market
- 6.1 Overview
- 6.2 Broadband and Internet statistics
- 6.3 ADSL and cable networks
- 6.4 Fibre-to-the-Home (FttH)
- 6.5 WiFi
- 6.6 WiMAX
7. Digital Media / Digital Economy
- 7.1 Overview
  - 7.1.1 Walla! Communications Ltd
  - 7.1.2 Nana
- 7.2 Smart cities/smart communities
- 7.3 Digital Broadcasting
  - 7.3.1 Overview of the broadcasting market
  - 7.3.2 Regulatory issues
  - 7.3.3 Cable TV
  - 7.3.4 Satellite TV – Yes TV
  - 7.3.5 Digital Terrestrial TV (DTTV)
  - 7.3.6 IPTV
  - 7.3.7 Video-on-Demand (VoD)
  - 7.3.8 High Definition TV (HDTV)
8. Mobile Communications
- 8.1 Overview of Israel’s mobile market
  - 8.1.1 Mobile statistics
- 8.2 Regulatory issues
  - 8.2.1 Award of 3G mobile licences
  - 8.2.2 Connection charges
  - 8.2.3 Mobile Number Portability
  - 8.2.4 Mobile Virtual Network Operators (MVNOs)
  - 8.2.5 Roaming
  - 8.2.6 Early Termination Fee Reduction
- 8.3 Mobile technologies
  - 8.3.1 Analogue
  - 8.3.2 Digital
  - 8.3.3 Integrated Digital Enhanced Network (iDEN)
  - 8.3.4 3G
  - 8.3.5 High-Speed Packet Access (HSPA)
- 8.4 Fourth generation mobile
- 8.5 Major mobile operators
  - 8.5.1 Pelephone Communications Ltd
  - 8.5.2 Cellcom
  - 8.5.3 Partner Communications Company Ltd (Orange)
  - 8.5.4 MIRS Communications Ltd
  - 8.5.5 Golan Telecom
- 8.6 Mobile voice services
  - 8.6.1 Prepaid
- 8.7 Mobile data services
- 8.8 Mobile broadband
- 8.9 Mobile content and applications
  - 8.9.1 Mobile TV
9. Glossary of Abbreviations

Table 1 – Country statistics Israel – 2011
Table 2 – Telephone network statistics – 2010
Table 3 – Internet user statistics – 2010
Table 4 – Fixed broadband statistics – 2010
Table 5 – Mobile statistics – September 2011
Table 6 – National telecommunications authority
Table 7 – GDP growth and inflation – 2005 - 2011
Table 8 – Bezeq share of fixed-line sector revenue – 2008 - 2010
Table 9 – Bezeq divisional revenues – 2007 - 2011
Table 10 – Active Bezeq fixed-line subscriber lines, MOU, and monthly ARPL – 2003 - 2011
Table 11 – HOT – Cable TV, broadband and telephony subscribers – June 2011
Table 12 – Fixed lines in service and teledensity – 1995 - 2011
Table 13 – Internet users, penetration and household penetration estimates – 1997 - 2011
Table 14 – Fixed broadband subscribers, annual change and household penetration – 2001 - 2011
Table 15 – ADSL and cable networks – subscribers and market share – 2005 - 2011
Table 16 – Bezeq broadband subscriber ARPU – 2005 - 2011
Table 17 – NetVision broadband subscribers – 2006 - 2011
Table 18 – Household PC penetration – 2002 - 2011
Table 19 – YES revenue and profit – 2007 - 2011
Table 20 – YES satellite TV subscribers, market share and ARPU – 2002 - 2011
Table 21 – Mobile subscribers and penetration rate – 1995 - 2011
Table 22 – Mobile operators, subscribers and annual change – September 2011
Table 23 – Mobile operators – total subscribers and market share – September 2011
Table 24 – Pelephone – revenue, profit, monthly MOU and monthly ARPU – 2003 - 2011
Table 25 – Cellcom – revenue, profit, monthly MOU, churn, and monthly ARPU – 2005 – 2011
Table 26 – Partner Communications – revenue, profit, monthly MOU, churn, monthly ARPU – 2002 - 2011
Table 27 – Partner – prepaid, postpaid and business subscribers – 2004 - 2011
Table 28 – Mobile operators – data and content revenue as a percentage of total revenue – 2003 - 2011
Table 29 – Total mobile subscriptions with broadband capability – 2006 - 2011