Israel - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Executive summary

Investment in Israel’s telecoms infrastructure under the spotlight

Israel has a highly developed telecoms sector with wide coverage of fixed broadband services as well as both 3G and 4G mobile broadband available. In 2017 however, the recently appointed Communications Minister expressed concern that the highly competitive mobile market had caused operators profits to decline – and this in turn was driving down the investment directed towards developing and updating infrastructure. This may create problems if the infrastructure cannot keep up with future demand.

Israel offers a highly competitive mobile sector, with five operators all competing for customers who enjoy cheap 3G mobile services. While 4G coverage in Israel is significant, the adoption of such services remains below 20% and this has been partly attributed to the prohibitive cost of services and devices.

Israel has a very high household internet penetration rate, almost all of which are broadband connections. There are a number of competing broadband platforms – the DSL and fibre network of fixed-line incumbent Bezeq, the HFC network of HOT and the fibre network from Partner. Bezeq and HOT are both subject to broadband universal service obligations which has resulted in fixed broadband being available to 99% of all households.

Israel has developed worldwide recognition has a premier location for start-up incubation and a number of innovations have emerged from the country over the past few years. Interest in the high-tech sector is still a key growth area for Israel with the US and China in particular setting up and investing in various research labs and solutions. Recently Israel turned its attention towards the opportunities presented by the growing cyber-security sector.

Key developments:

  • There are concerns being raised that telecoms infrastructure investment is falling behind in Israel.
  • The regulator recently approved a network sharing and hosting deal between Cellcom and Electra (which is acquiring Golan Telecom).
  • In mid 2017 the Israel Securities Authority launched an investigation into Bezeq regarding possible securities law violations.
  • In mid-2016 both Cellcom and Partner were given approval by the MoC to purchase a controlling stake in Israel Broadband Company (IBC).
  • Companies mentioned in this report include:

Bezeq, Bezeq International, Pelephone, HOT Telecom, HOT Mobile, Cellcom, 013 NetVision, Partner (Formerly Orange), 012 Smile, Xfone, Golan Telecom (Electra Communications), Israel Broadband Company (IBC).

Table of Contents

  • 1. Executive summary
  • 2. Key statistics
  • 3. Country overview
  • 4. Telecommunications market
    • 4.1 Overview
    • 4.2 Market analysis
    • 4.3 Recent developments
  • 5. Regulatory environment
    • 5.1 Historic overview
    • 5.2 Regulatory authority
    • 5.3 Privatisation of Bezeq
      • 5.3.1 Earlier privatisation attempts
    • 5.4 Telecom sector liberalisation in Israel
      • 5.4.1 Liberalisation begins
      • 5.4.2 Early moves towards fixed-line market liberalisation
      • 5.4.3 Kroll Committee
      • 5.4.4 Licences awarded to cable TV companies
      • 5.4.5 Further competition in the international calls market
      • 5.4.6 New domestic voice service licences and Bezeq’s reaction
      • 5.4.7 Licensing of VoIP/VOB
      • 5.4.8 Interconnect
      • 5.4.9 Gronau Commission
      • 5.4.10 Hayek Commission
      • 5.4.11 Alternative fibre network operator
    • 5.5 Number Portability (NP)
    • 5.6 Net Neutrality
  • 6. Fixed network operators
    • 6.1 Introduction
    • 6.2 Bezeq
    • 6.3 HOT Telecom
    • 6.4 013 NetVision (Cellcom)
    • 6.5 012 Smile Telecom (Partner)
    • 6.6 Xfone 018/Marathon Telecommunications
  • 7. Telecommunications infrastructure
    • 7.1 National telecom network
    • 7.2 International infrastructure
      • 7.2.1 Submarine cable networks
      • 7.2.2 Satellite networks
    • 7.3 Smart infrastructure
      • 7.3.1 M2M/IoT
      • 7.3.2 Smart grids
      • 7.3.3 Smart cities
    • 7.4 Wholesale
      • 7.4.1 Overview
  • 8. Fixed broadband Market
    • 8.1 Market analysis
    • 8.2 Broadband statistics
    • 8.3 Digital Subscriber Line (DSL) networks
    • 8.4 Fibre networks
        • 8.4.1 Fixed wireless (WiFi)
      • 8.5 Competition issues
        • 8.5.1 Wholesale
    • 9. Digital economy
      • 9.1 Introduction
        • 9.1.1 Start-ups
      • 9.2 e-Commerce
      • 9.3 e-Banking
      • 9.4 e-Government
      • 9.5 e-Health
      • 9.6 e-Education
    • 10. Digital media
      • 10.1.1 Introduction
        • 10.2 Advertising
        • 10.3 Videostreaming
        • 10.4 On line gaming and gambling
        • 10.5 VoIP
      • 11. Mobile Market
        • 11.1 Market analysis
        • 11.2 Mobile statistics
          • 11.2.1 General statistics
          • 11.2.2 Mobile broadband statistics
      • 12. Mobile infrastructure
        • 12.1 Brief intro analogue networks
        • 12.2 Digital networks
          • 12.2.1 GSM
          • 12.2.2 3G
          • 12.2.3 LTE
        • 12.3 IoT and M2M networks
        • 12.4 Regulatory issues
          • 12.4.1 Connection charges
          • 12.4.2 Licensing
          • 12.4.3 LTE Spectrum
          • 12.4.4 Roaming
          • 12.4.5 MTRs
          • 12.4.6 Early termination fee reduction
          • 12.4.7 MNP
          • 12.4.8 Network sharing
        • 12.5 Major mobile operators
          • 12.5.1 Cellcom
          • 12.5.2 Partner Communications Company (formerly Orange)
          • 12.5.3 Pelephone (Bezeq)
          • 12.5.4 HOT Mobile
          • 12.5.5 Golan Telecom (acquired by Electra in 2017)
        • 12.6 MVNOs
          • 12.6.1 Historical background
          • 12.6.2 Current market
        • 12.7 Mobile content and applications
        • 12.8 m-commerce
        • 12.9 m-advertising
        • 12.10 m-TV
        • 12.11 Apps
      • 13. Mobile handsets
      • 14. Related reports
      • Table 1 – Country statistics – 2017
      • Table 2 – Telephone network statistics – 2017
      • Table 3 – Broadband statistics – 2017
      • Table 4 – Mobile statistics – 2017
      • Table 5 – National telecommunications authorities
      • Table 6 – Evolution of GDP and inflation in Israel – 2012 - 2017
      • Table 7 – Bezeq revenue and EBITDA – 2008 – 2016
      • Table 8 –Bezeq fixed access lines and monthly ARPL – 2003 – Q2 2016
      • Table 9 – HOT fixed voice, TV and internet subscribers – 2009 - 2014
      • Table 10 – HOT financial data – 2012 - 2014
      • Table 11 – Fixed lines in service and teledensity – 1995 - 2017
      • Table 12 – Internet users and penetration – 1997 - 2016
      • Table 13 – Fixed broadband subscribers – 2001 - 2017
      • Table 14 – Bezeq fixed broadband subscribers and ARPU – 2005 - 2016
      • Table 15 – Average bundled broadband speed per Bezeq customer – 2007 - 2015
      • Table 16 – PC penetration – 2002 - 2015
      • Table 17 – International internet bandwidth – 2005 - 2016
      • Table 18 – YES revenue and profit – 2007 - 2016
      • Table 19 – YES subscribers, market share, and ARPU – 2004 - 2016
      • Table 20 – Historic - Mobile subscribers and penetration rate - 1995 - 2004
      • Table 21 – Mobile subscribers and penetration rate – 2005 - 2017
      • Table 22 – Major mobile operators’ market share by subscribers – 2010 - 2016
      • Table 23 – Major mobile operators’ mobile ARPU– 2013 - 2016
      • Table 24 – Active mobile broadband subscriptions – 2010 - 2017
      • Table 25 – Cellcom – Consolidated revenue and operating profit – 2005 – Q2 2017
      • Table 26 – Cellcom – mobile subscribers and ARPU – 2005 – Q2 2017
      • Table 27 – Partner – revenue and operating profit – 2005 – 2016
      • Table 28 – Partner – subscribers and ARPU – 2005 – Q1 2017
      • Table 29 – Pelephone – revenue and operating profit – 2003 – 2016
      • Table 30 – Pelephone – Subscribers and ARPU – 2005 - 2016
      • Table 31 – HOT Mobile – Subscribers– 2010 – Q2 2016

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    Number of pages 63

    Status Current

    Last updated 15 Sep 2017
    Update History

    Analyst: Kylie Wansink

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