Israel Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: March 2025

Report Pages: 202

Analyst: Henry Lancaster

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Summary
Table Of Contents

Israel initiates second scheme to fully fibre the country by end-2024

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, while the wholesale fibre provider IBC in mid-2023 launched a 10Gb/s fibre based broadband service.

LTE services are almost universally available, while the August 2020 multi-spectrum auction also enabled the MNOs to provide services based on 5G. A second release of 5G-suitable spectrum in July 2023 enabled Pelephone to improve its 5G offerings. The migration to 5G to the end of 2025 will be supported by the progressive closing down of GSM and 3G networks. The government is looking to align 5G deployments with smart city infrastructure.

The second incentive fibre deployment was announced in February 2023, with some ILS90 million assigned. This work will see fibre broadband be available to 99.5% of all premises in the country by the end of 2024. The financial contribution of telcos for the work was suspended from the second half of 2023, given the pace of progress and the remaining funds available to the companies assigned to complete the remaining fibre connections. Israel‘s rapid development of fully-fibred broadband connectivity is aimed at supporting economic growth and ensuring that the entire population can modern digital services.

Key developments:

MoC approves an initiative of the Electric Corporation to provide infrastructure on electricity poles for the installation of 5G micro transmitters.
Starlink’s broadband service is approved to operate in Israel and the Gaza Strip.
MNOs are tasked with enabling eSIMs on their networks.
Cellcom’s main shareholder in talks to sell stake.
MoC anticipates full national fibre broadband coverage by end-2024.
IBC launches a 10Gb/s fibre based broadband service.
Report includes updated Telecom Maturity Index charts and analyses, telcos’ operating and financial data to Q4 2023, MoC’s latest communications report, 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
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
eSIM

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)
Satellite

Fixed network operators

Introduction
Bezeq
HOT Telecom
013 NetVision (Cellcom)
012 Smile Telecom (Partner)
Wecom

Telecommunications infrastructure

National telecom network
Incentive Fund
International infrastructure

Submarine cable networks
Satellite networks

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 – 2024 (e)
Table 2 – Israel - evolution of GDP and inflation in Israel – 2012 – 2027
Table 3 – Change in telecom sector revenue (ILS) – 2018 – 2021
Table 4 – Change in mobile revenue – 2018 – 2021
Table 5 – Decline in average mobile ARPU – 2010 – 2021
Table 6 – Change in average annual mobile churn rate – 2010 – 2021
Table 7 – Major mobile operators’ monthly mobile ARPU (ILS / month) – 2013 – 2023
Table 8 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 9 – Change in the market share of mobile subscribers by technology – 2021 – 2027
Table 10 – Increase in the number of Pelephone’s 5G subscribers – 2022 – 2024
Table 11 – Growth in the number of active mobile broadband subscriber and penetration – 2012 – 2027
Table 12 – Development of Cellcom’s financial data (ILS billion) – 2012 – 2023
Table 13 – Development of Cellcom’s adjusted EBITDA , capex (ILS billion) – 2012 – 2023
Table 14 – Change in the number of Cellcom’s mobile revenue (ILS million) – 2019 – 2023
Table 15 – Change in the number of Cellcom’s mobile subscribers – 2012 – 2023
Table 16 – Decline in Cellcom’s annual churn rate – 2012 – 2023
Table 17 – Development of Partner’s financial data (ILS million) – 2012 – 2023
Table 18 – Development of Partner’s revenue by service (ILS million) – 2015 – 2023
Table 19 – Change in the number of Partner’s mobile subscribers and churn rate – 2012 – 2023
Table 20 – Change in the number of Partner’s mobile subscribers by type – 2021 – 2023
Table 21 – Change in Pelephone’s mobile market share by subscribers – 2011 – 2023
Table 22 – Change in Pelephone’s revenue by type (ILS billion) – 2012 – 2023
Table 23 – Decline in Pelephone’s interconnect revenue – 2021 – 2023
Table 24 – Change in Pelephone’s adjusted EBITDA, adjusted net profit, capex (ILS million) – 2017 – 2023
Table 25 – Change in Pelephone’s mobile ARPU (ILS/month/subscriber) – 2013 – 2023
Table 26 – Change in the number of Pelephone’s mobile subscribers – 2012 – 2023
Table 27 – Change in the number of Pelephone’s contract and prepaid subscribers (million) – 2014 – 2023
Table 28 – Change in Pelephone’s annual churn rate – 2012 – 2023
Table 29 – Development of HOT Telecom’s financial data (€ million) – 2013 – 2023
Table 30 – Development of HOT’s capex – 2020 – 2023
Table 31 – Development of HOT Telecom’s mobile revenue – 2020 – 2023
Table 32 – Change in the number of HOT Mobile’s mobile subscribers (million) – 2012 – 2023
Table 33 – Change in internet sector revenue by type (ILS) – 2018 – 2021
Table 34 – Change in data transmission revenue by major operator (ILS billion) – 2012 – 2021
Table 35 – Increase in internet user penetration – 2012 – 2024
Table 36 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Table 37 – Change in the number of Cellcom’s fixed broadband subscribers by type – 2015 – 2023
Table 38 – Change in the number of fixed broadband subscribers by platform – 2012 – 2019
Table 39 – Increase in average download/upload speed for fibre broadband connections (Mb/s) – 2012 – 2021
Table 40 – Increase in the fibre penetration rate – 2017 – 2022
Table 41 – Change in the number of Partner’s fibre broadband subscribers by type – 2019 – 2023
Table 42 – Change in the number of Bezeq’s fixed broadband subscribers (thousand) – 2012 – 2023
Table 43 – Increase in the number of Bezeq’s fibre broadband subscribers – 2021 – 2024
Table 44 – Increase in the number of Bezeq’s fibre premises passed – 2021 – 2024
Table 45 – Increase in the average data rate on Bezeq’s fixed broadband network – 2012 – 2023
Table 46 – Change in Bezeq’s annualised retail broadband ARPU – 2012 – 2023
Table 47 – Growth in the number of HOT Telecom’s fixed broadband subscribers and fibred premises (million) – 2012 – 2023
Table 48 – Development of Bezeq Group’s financial data (ILS billion) – 2012 – 2023
Table 49 – Development of Bezeq Group’s profit, capex (ILS billion) – 2017 – 2023
Table 50 – Decline in Bezeq’s fixed-line ARPU – 2014 – 2023
Table 51 – Decline in the number of Bezeq’s fixed lines – 2014 – 2023
Table 52 – Decline in Bezeq’s fixed voice traffic (million minutes) – 2012 – 2023
Table 53 – Development of HOT Telecom’s fixed revenue – 2014 – 2023
Table 54 – Growth in the Cellcom’s fixed revenue – 2014 – 2023
Table 55 – Growth in the Partner's fixed revenue – 2012 – 2023
Table 56 – Decline in the number of fixed lines in service and teledensity – 2012 – 2027
Table 57 – Change in fixed telephony service revenue by type (ILS million) – 2018 – 2021
Table 58 – Change in fixed telephony voice traffic by type (million minutes) – 2010 – 2021
Table 59 – Increase in the fibre broadband coverage rate of households – 2017 – 2024
Table 60 – Increase in the number of localities covered by fibre broadband – 2018 – 2022
Table 61 – Historic - Israel - fixed lines in service and teledensity – 1995 – 2011
Table 62 – Historic - Israel - Internet users and penetration – 1995 – 2008
Table 63 – Historic - Israel - fixed broadband subscribers – 2001 – 2011
Table 64 – Historic - Major mobile operators’ market share by subscribers – 2010 – 2017
Table 65 – Historic - Israel - PC penetration – 2002 – 2008
Table 66 – Historic - Israel - mobile subscribers and penetration rate - 1995 – 2011
Table 67 – Historic - Cellcom - consolidated revenue – 2005 – 2011
Table 68 – Historic - Cellcom - mobile subscribers and ARPU – 2005 – 2011
Table 69 – Historic - Bezeq fixed access lines and monthly ARPL – 2003 – 2011
Table 70 – Historic - Pelephone - revenue and operating profit (ILS billion) – 2003 – 2011

List of Charts

Chart 7 – Change in telecom sector revenue – 2018 – 2021
Chart 8 – Change in mobile revenue – 2018 – 2021
Chart 9 – Major mobile operators’ monthly mobile ARPU (ILS / month) – 2013 – 2023
Chart 10 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 11 – Change in the market share of mobile subscribers by technology – 2021 – 2027
Chart 12 – Growth in the number of active mobile broadband subscriber and penetration – 2012 – 2027
Chart 13 – Development of Cellcom’s financial data – 2012 – 2023
Chart 14 – Development of Cellcom’s adjusted EBITDA, capex – 2012 – 2023
Chart 15 – Change in the number of Cellcom’s mobile revenue – 2019 – 2023
Chart 16 – Change in the number of Cellcom’s mobile subscribers – 2012 – 2023
Chart 17 – Decline in Cellcom’s annual Churn rate – 2012 – 2023
Chart 18 – Development of Partner’s financial data – 2012 – 2023
Chart 19 – Development of Partner’s revenue by service – 2015 – 2023
Chart 20 – Change in the number of Partner’s mobile subscribers and churn rate – 2012 – 2023
Chart 21 – Change in Pelephone’s mobile market share by subscribers – 2011 – 2023
Chart 22 – Change in Pelephone’s revenue by type – 2012 – 2023
Chart 23 – Change in the number of Bezeq (Pelephone’s) mobile subscribers – 2012 – 2023
Chart 24 – Change in the number of Pelephone’s contract and prepaid subscribers – 2014 – 2023
Chart 25 – Change in Pelephone’s annual churn rate – 2012 – 2023
Chart 26 – Development of HOT Telecom’s financial data – 2013 – 2023
Chart 27 – Change in the number of HOT Mobile’s mobile subscribers – 2012 – 2023
Chart 28 – Change in data transmission revenue by major operator (ILS billion) – 2012 – 2021
Chart 29 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Chart 30 – Change in the number of Cellcom’s fixed broadband subscribers by type – 2015 – 2023
Chart 31 – Change in the number of fixed broadband subscribers by platform – 2012 – 2019
Chart 32 – Increase in average download/upload speed for fibre broadband connections – 2012 – 2021
Chart 33 – Change in the number of Partner’s fibre broadband subscribers by type – 2019 – 2023
Chart 34 – Change in the number of Bezeq’s fixed broadband subscribers – 2012 – 2023
Chart 35 – Increase in the number of Bezeq’s fibre broadband subscribers – 2021 – 2024
Chart 36 – Change in Bezeq’s annualised retail broadband ARPU – 2012 – 2023
Chart 37 – Growth in the number of HOT Telecom’s fixed broadband subscribers and fibred premises – 2012 – 2023
Chart 38 – Development of Bezeq’s fixed financial data – 2012 – 2023
Chart 39 – Development of Bezeq Group’s profit, capex – 2017 – 2023
Chart 40 – Decline in the number of Bezeq’s fixed lines – 2014 – 2023
Chart 41 – Decline in Bezeq’s fixed voice traffic – 2012 – 2023
Chart 42 – Development of HOT Telecom’s fixed revenue – 2014 – 2023
Chart 43 – Growth in the Cellcom’s fixed revenue – 2014 – 2023
Chart 44 – Growth in the Partner fixed revenue – 2012 – 2023
Chart 45 – Decline in the number of fixed lines in service and teledensity – 2012 – 2027
Chart 46 – Change in fixed telephony service revenue by type (ILS million) – 2018 – 2021
Chart 47 – Change in fixed telephony voice traffic by type – 2010 – 2021

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 initiates second scheme to fully fibre the country by end-2024

Key developments:

Companies mentioned in this report include:

Key statistics

Country overview

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