Israel - Telecoms, Mobile and Broadband - Statistics and Analyses

High level of competition in Israel’s mobile market

Mobile operators in Israel have increasingly felt the pressure from a highly competitive market, resulting in declining profits and revenue. Mobile ARPUs have dropped over the past few years for all the major operators, with the market accommodating six mobile operators.

In 2019 the government begun its tender process for 5G licensing; with the expectation that some operators may join together in the bidding process in order to meet the financial requirements.

While 4G coverage in Israel is significant, the adoption of such services remains low 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. · DSL subscriptions hold the largest market share of fixed broadband subscriptions. Fibre-network deployment is well underway as well, led by the Israel Broadband Company (IBC). Bezeq and HOT are both subject to broadband universal service obligations which has resulted in fixed broadband being available to 99% of all households.

Interest in the high-tech sector is still a key growth area for Israel with many start-ups operating. Recently Israel turned its attention towards the opportunities presented by the growing cyber-security sector.

Key developments:

  • In 2019 the regulator launched a tender of 5G spectrum in the 700 MHz, 2600 MHz and 3500–3800 MHz bands.
  • In 2018 Israel gained a new mobile operator with 018 Xfone launching 4G mobile services under the We4G brand.
  • There are concerns being raised that telecoms infrastructure investment is falling behind in Israel.
  • In 2018 Bezeq was directed by the Ministry of Communications to begin offering wholesale telephony services.

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); Remi Levy, Mobile 019.

Table of Contents

  • Key statistics

  • Country overview

  • Telecommunications market

    • Overview
    • Market analysis
  • Regulatory environment

    • Historic overview
    • Regulatory authority
    • Privatisation of Bezeq
      • Earlier privatisation attempts
    • Telecom sector liberalisation in Israel
      • Liberalisation begins
      • Early moves towards fixed-line market liberalisation
      • Kroll Committee
      • Licences awarded to cable TV companies
      • Further competition in the international calls market
      • New domestic voice service licences and Bezeq’s reaction
      • Licensing of VoIP/VOB
      • Interconnect
      • Gronau Commission
      • Hayek Commission
      • Alternative fibre network operator
    • Number Portability (NP)
    • Net Neutrality
    • Wholesale
      • Overview
  • Fixed network operators

    • Introduction
    • Bezeq
    • HOT Telecom
    • 013 NetVision (Cellcom)
    • 012 Smile Telecom (Partner)
    • Xfone 018/Marathon Telecommunications
  • Telecommunications infrastructure

    • National telecom network
    • International infrastructure
      • Submarine cable networks
      • Satellite networks
    • Smart infrastructure
      • M2M/IoT
      • Smart grids
  • Fixed broadband market

    • Market analysis
    • Broadband statistics
    • Digital Subscriber Line (DSL) networks
    • Fibre networks
      • Unlimited (Israel Broadband Company)
      • Fixed wireless (WiFi)
  • Digital economy

    • Start-ups
    • e-Banking
  • Digital media

    • Videostreaming
  • Mobile market

    • Market analysis
    • Mobile statistics
      • General statistics
      • Mobile broadband statistics
    • Mobile infrastructure
      • 5G
      • 4G LTE
      • 3G
      • GSM
    • Regulatory issues
      • Connection charges
      • Licensing
      • LTE Spectrum
      • Roaming
      • MTRs
      • Early termination fee reduction
      • MNP
      • Network sharing
    • Major mobile operators
      • Cellcom
      • Partner Communications Company (formerly Orange)
      • Pelephone (Bezeq)
      • HOT Mobile
      • Golan Telecom (acquired by Electra in 2017)
    • MVNOs
      • Historical background
      • Recent developments
    • Mobile handsets
  • Appendix – Historic Data

  • Related reports


List of Tables

  • Table 1 – Top Level Country Statistics and Telco Authorities - Israel – 2019
  • Table 2 – Israel - evolution of GDP and inflation in Israel – 2014 – 2019
  • Table 3 – Bezeq revenue and EBITDA – 2009 – Q1 2019
  • Table 4 – Bezeq fixed access lines and monthly ARPL – 2009 – Q2 2019
  • Table 5 – Israel - fixed lines in service and teledensity – 2009 – 2024
  • Table 6 – Israel - Internet penetration – 2009 – 2019
  • Table 7 – Israel - fixed broadband subscribers – 2009 – 2024
  • Table 8 – Bezeq - fixed broadband lines and retail broadband ARPU – 2009 – Q1 2019
  • Table 9 – Average broadband speed per retail Bezeq customer – 2009 – Q1 2019
  • Table 10 – Israel - fixed broadband subscribers – Cable, DSL and FttH/B - 2010 – 2017
  • Table 11 – Israel - major mobile operators’ monthly mobile ARPU – 2013 – 2018
  • Table 12 – Israel - mobile subscribers and penetration rate – 2009 – 2024
  • Table 13 – Israel - major mobile operators’ market share by subscribers – 2010 – 2017
  • Table 14 – Israel - active mobile broadband subscriptions – 2010 – 2024
  • Table 15 – 4G LTE adoption- 2016; 1H 2018
  • Table 16 – Cellcom – consolidated revenue – 2009 – Q1 2019
  • Table 17 – Cellcom – mobile subscribers and ARPU – 2009 – Q1 2019
  • Table 18 – Partner – revenue and operating profit – 2008 – 2018
  • Table 19 – Partner – mobile subscribers and monthly ARPU – 2008 – 2018
  • Table 20 – Pelephone – revenue and operating profit – 2008 – Q2 2018
  • Table 21 – Pelephone – mobile subscribers and monthly ARPU – 2008 – Q1 2019
  • Table 22 – HOT Mobile – revenue and EBITDA – 2017 – Q2 2019
  • Table 23 – HOT Mobile – mobile subscribers – 2010 – 2018
  • Table 24 – Historic – Israel - fixed lines in service and teledensity – 1995 – 2008
  • Table 25 – Historic – Israel - Internet users and penetration – 1995 – 2008
  • Table 26 – Historic - Israel - fixed broadband subscribers – 2001 – 2008
  • Table 27 – Historic - Israel - PC penetration – 2002 – 2005
  • Table 28 – Historic – Israel - mobile subscribers and penetration rate - 1995 – 2008
  • Table 29 – Historic - Cellcom – consolidated revenue – 2005 – 2008
  • Table 30 – Historic - Cellcom – mobile subscribers and ARPU – 2005 – 2008
  • Table 31 – Historic - Bezeq fixed access lines and monthly ARPL – 2003 – 2008
  • Table 32 – Historic - Pelephone – revenue and operating profit – 2003 – 2007

List of Charts

  • Chart 1 – Israel – fixed-line subscriptions in decline – 2009 – 2024
  • Chart 2 – Israel – fixed broadband growth – 2009 - 2024
  • Chart 3 – Major mobile operators – monthly mobile ARPU decline – 2013 - 2018
  • Chart 4 – Israel – mobile subscriber growth and penetration – 2009 – 2024
  • Chart 5 – Israel mobile broadband growth – 2009 – 2024

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Technologies

Broadband Fixed
Digital Economy
Mobile & Wireless Broadband and Media
Mobile Communications (voice and infrastructure)
Telecoms Infrastructure

Number of pages 105

Status Current

Last updated 14 Oct 2019
Update History

Analyst: Kylie Wansink

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