Israel Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: December 2023

Report Pages: 168

Analyst: Sebastien De Rosbo

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Summary
Table Of Contents

Israel to close GSM and 3G networks by end-2025

Israel’s developed economy largely revolves around high technology products, primarily used in the medical, biotechnology, agricultural, materials, and military industries. The country also attracts investment in its cyber-security industry, and has established itself as a hub for thousands of start-up companies.

To underpin these developments, Israel has developed a robust telecoms sector. Household broadband penetration is high, with a focus on fibre-network deployment. Bezeq offers FttP services with data rates of up to 2.5Gb/s.

LTE services are almost universally available, while the August 2020 multi-spectrum auction also enabled the MNOs to provide services based on 5G. In coming years, 5G will be supported by moves to close down GSM and 3G networks in stages through to the end of 2025, with the physical assets and spectrum to be repurposed for LTE and 5G use.

BuddeComm notes that the outbreak of the pandemic continues to have a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure.

Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report. The report also covers the responses of the telecom operators.

Key developments:

Telecom regulator concludes 5G auction, proposes end to all interconnection rates, sets timeline for the closure of GSM and 3G networks by end-2025;
Regulator awards ten companies with contracts to provide fibre broadband to underserved areas;
Economic Affairs Committee approves Communications Law amendments designed to streamline licensing process;
Bezeq launches its fibre network, offering data rates of up to 2.5Gb/s;
Research Committee awards second-round 5G-related grants to innovative companies;
Bids made by Cellcom and Partner Communications for 018 Xfone;
Universal Service Obligations on Bezeq and HOT Telecom help extend broadband availability to 99% of households;
Report includes updated Telecom Maturity Index charts and analyses, telcos’ operating and financial data to Q4 2021, assessment of the global impact of the pandemic on the telecoms sector, recent market developments.

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.

Key statistics
Country overview
Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market

Market analysis

Regulatory environment

Regulatory authority
Fixed-line developments

Privatisation of Bezeq
Telecom sector liberalisation
Licences awarded to cable TV companies
Competition in the international calls market
New domestic voice service licences
Communications Law
Licensing of VoIP/VOB
Interconnect
Gronau Commission
Hayek Commission
Alternative fibre network operator
Number Portability (NP)
Net Neutrality
Wholesale

Mobile network developments

Connection charges
Licensing
LTE spectrum
5G spectrum
Roaming
MTR
Early termination fee reduction
Mobile Number Portability (MNP)
Network sharing

Mobile market

Market analysis

Merger activity 2019/2020

Mobile statistics
Mobile infrastructure

5G
4G (LTE)
3G
GSM
Mobile broadband

Major mobile operators

Cellcom
Partner Communications
Pelephone (Bezeq)
HOT Mobile
Golan Telecom

MVNOs

Fixed broadband market

Market analysis
Broadband statistics
Digital Subscriber Line (DSL) networks
Fibre-to-the-Premises (FttP) networks

Israel Broadband Company (IBC)
Partner
Bezeq
HOT

Other fixed broadband services

Fixed wireless (Wi-Fi and WiMAX)

Fixed network operators

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

Telecommunications infrastructure

National telecom network
International infrastructure

Submarine cable networks
Satellite networks
AMOS/Spacecom Satellite Communications

Smart infrastructure

Smart grids

Digital economy

e-Banking

Appendix – Historic Data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities - Israel – 2021 (e)
Table 2 – Israel - evolution of GDP and inflation in Israel – 2012 – 2025
Table 3 – Major mobile operators’ monthly mobile ARPU (ILS / month) – 2013 – 2021
Table 4 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 5 – Growth in the number of active mobile broadband subscriber and penetration – 2012 – 2027
Table 6 – Market share of mobile subscribers by technology – 2019 – 2025
Table 7 – Development of Cellcom’s consolidated financial data ILS billion) – 2012 – 2021
Table 8 – Development of Cellcom’s consolidated EBITDA , capex (ILS billion) – 2012 – 2021
Table 9 – Change in the number of Cellcom’s mobile subscribers – 2012 – 2021
Table 10 – Decline in Cellcom’s annual churn rate – 2012 – 2021
Table 11 – Development of Partner’s financial data (ILS million) – 2012 – 2021
Table 12 – Change in the number of Partner’s mobile subscribers and churn rate – 2012 – 2021
Table 13 – Decline in Pelephone’s mobile revenue – 2012 – 2021
Table 14 – Change in the number of Pelephone’s mobile subscribers – 2012 – 2021
Table 15 – Change in the number of Pelephone’s contract and prepaid subscribers (million) – 2014 – 2021
Table 16 – Change in Pelephone’s annual churn rate – 2012 – 2021
Table 17 – Development of HOT Mobile’s financial data (€ million) – 2013 – 2021
Table 18 – Change in the number of HOT Mobile’s mobile subscribers (million) – 2012 – 2021
Table 19 – Increase in internet user penetration – 2012 – 2021
Table 20 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Table 21 – Change in the number of Bezeq’s fixed broadband subscribers – 2012 – 2021
Table 22 – Growth in the number of Cellcom’s fixed broadband subscribers – 2015 – 2021
Table 23 – Growth in the number of HOT Telecom’s fixed broadband subscribers – 2012 – 2021
Table 24 – Change in Bezeq’s annualised retail broadband ARPU – 2012 – 2021
Table 25 – Average bundled broadband speed per retail Bezeq customer – 2012 – 2021
Table 26 – Growth in the number of Partner's fixed broadband subscribers – 2019 – 2021
Table 27 – Change in the number of fixed broadband subscribers by platform – 2012 – 2019
Table 28 – Development of Bezeq Group’s financial data (ILS billion) – 2012 – 2021
Table 29 – Change in Bezeq’s fixed voice traffic – 2012 – 2021
Table 30 – Development of HOT Telecom’s fixed revenue – 2014 – 2021
Table 31 – Growth in the Cellcom’s fixed revenue – 2014 – 2021
Table 32 – Growth in the Partner's fixed revenue – 2012 – 2021
Table 33 – Decline in the number of fixed lines in service and teledensity – 2012 – 2027
Table 34 – Historic - Israel - fixed lines in service and teledensity – 1995 – 2011
Table 35 – Historic - Israel - Internet users and penetration – 1995 – 2008
Table 36 – Historic - Israel - fixed broadband subscribers – 2001 – 2011
Table 37 – Historic - Major mobile operators’ market share by subscribers – 2010 – 2017
Table 38 – Historic - Israel - PC penetration – 2002 – 2008
Table 39 – Historic - Israel - mobile subscribers and penetration rate - 1995 – 2011
Table 40 – Historic - Cellcom - consolidated revenue – 2005 – 2011
Table 41 – Historic - Cellcom - mobile subscribers and ARPU – 2005 – 2011
Table 42 – Historic - Bezeq fixed access lines and monthly ARPL – 2003 – 2011
Table 43 – Historic - Pelephone - revenue and operating profit (ILS billion) – 2003 – 2011

List of Charts

Chart 7 – Major mobile operators’ monthly mobile ARPU (ILS / month) – 2013 – 2021
Chart 8 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 9 – Growth in the number of active mobile broadband subscriber and penetration – 2012 – 2027
Chart 10 – Development of Cellcom’s consolidated financial data – 2012 – 2021
Chart 11 – Development of Cellcom’s consolidated EBITDA , capex – 2012 – 2021
Chart 12 – Change in the number of Cellcom’s mobile subscribers – 2012 – 2021
Chart 13 – Decline in Cellcom’s annual Churn rate – 2012 – 2021
Chart 14 – Development of Partner’s financial data – 2012 – 2021
Chart 15 – Change in the number of Partner’s mobile subscribers and churn rate – 2012 – 2021
Chart 16 – Decline in Pelephone’s mobile revenue – 2012 – 2021
Chart 17 – Change in the number of Bezeq (Pelephone’s) mobile subscribers – 2012 – 2021
Chart 18 – Change in the number of Pelephone’s contract and prepaid subscribers – 2014 – 2021
Chart 19 – Change in Pelephone’s annual churn rate – 2012 – 2021
Chart 20 – Development of HOT Mobile’s financial data – 2013 – 2021
Chart 21 – Change in the number of HOT Mobile’s mobile subscribers (million) – 2012 – 2021
Chart 22 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Chart 23 – Change in the number of Bezeq’s fixed broadband lines – 2012 – 2021
Chart 24 – Growth in the number of Cellcom’s fixed broadband subscribers – 2015 – 2021
Chart 25 – Growth in the number of Altice fixed broadband subscribers – 2012 – 2021
Chart 26 – Change in Bezeq’s annualised retail broadband ARPU – 2012 – 2021
Chart 27 – Growth in the number of Partner's fixed broadband subscribers – 2019 – 2021
Chart 28 – Change in the number of fixed broadband subscribers by platform – 2012 – 2019
Chart 29 – Development of Bezeq’s fixed financial data – 2012 – 2021
Chart 30 – Change in Bezeq’s fixed voice traffic – 2012 – 2021
Chart 31 – Development of HOT Telecom’s fixed revenue – 2014 – 2021
Chart 32 – Growth in the Cellcom’s fixed revenue – 2014 – 2021
Chart 33 – Growth in the Partner fixed revenue – 2012 – 2021
Chart 34 – Decline in the number of fixed lines in service and teledensity – 2012 – 2027

List of Exhibits

Exhibit 5 – 5G spectrum auction results – August 2020

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Israel Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Israel to close GSM and 3G networks by end-2025

Key developments:

Companies mentioned in this report include:

Key statistics

Country overview

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed broadband market

Fixed network operators

Telecommunications infrastructure

Smart infrastructure

Digital economy

Appendix – Historic Data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views