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| Countries covered: Israel In 2011 we expect the Israeli telecom market to generate NIS24.3bn ($6.8bn) in service revenue. Over the forecast period, we expect it to demonstrate a moderate growth of CAGR 1.9% in US terms, reaching $27.0bn by 2016. The mobile voice revenue declined in 2011 by more than 15% due to regulator implementation of interconnection charge cuts. We expect mobile voice revenue to continue to drop over the forecast period at a 5% CAGR due to further regulator tariff cuts and intensifying competition in the mobile market, demonstrating a decline from the expected revenue of $2.79bn in 2011 to $2.16bn by 2016. At the same time, we expect data to continue growing as both fixed and mobile operators are investing in the deployment and upgrading of new networks. For example, the incumbent operator, Bezeq, is looking into expanding its network by providing FTTC-based VDSL or direct FTTH services. |
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