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Israel - Key Statistics, Telecommunications Market and Regulatory Overviews

Israel - Key Statistics, Telecommunications Market and Regulatory Overviews

Israel possesses a well-developed telecommunications market characterised by high penetration and a significant number of service providers. Regulation remains the responsibility of the Ministry of Communication, which has been encouraging competition through various regulatory mechanisms. Several operators have been licensed to provide VoIP services, which are usually referred to as Voice over Broadband (VOB) in Israel. Fixed network operators are required to allow VOB licensees access to their networks. Telecoms incumbent Bezeq has traditionally dominated the fixed-line market, and only one company, cable TV and triple play provider HOT Telecom, had had success in gaining a portion of the fixed-line market. However with the opening up of the fixed-line market to wholesale rental in 2015 we are beginning to see alternative operators begin to offer fixed services such as Internet, voice and television. This report provides an overview of the telecoms market in Israel and explores the key regulatory changes. For further information on Israel's mobile, broadband and digital media markets, see separate reports.

Key developments:

Israel has a very high household internet penetration rate, almost all of which are broadband connections. There are three competing broadband platforms the DSL and fibre network of fixed-line incumbent Bezeq, the HFC network of HOT, and the mobile broadband products offered by the mobile operators; a Net Neutrality law covers fixed line ISPs as well as mobile operators; the Ministry of Communications has introduced a fixed wholesale market including Bitstream Access, lease of access segments, dark fibres, tubes, and transmission services.

Companies covered in this report:

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


1. Synopsis
2. Key statistics
2.1 Country overview
3. Telecommunications market
3.1 Recent developments
3.2 Historical overview
3.3 Market analysis
4. Regulatory environment
4.1 Historic overview
4.2 Regulatory authority
4.3 Privatisation of Bezeq
4.3.1 Earlier privatisation attempts
4.4 Telecom sector liberalisation in Israel
4.4.1 Liberalisation begins
4.4.2 Early moves towards fixed-line market liberalisation
4.4.3 Kroll Committee
4.4.4 Licences awarded to cable TV companies
4.4.5 Further competition in the international calls market
4.4.6 New domestic voice service licences and Bezeq's reaction
4.4.7 Licensing of VoIP/VOB
4.4.8 Interconnect
4.4.9 Gronau Commission
4.4.10 Hayek Commission
4.4.11 Alternative fibre network operator
4.5 Number Portability (NP)
4.6 Net Neutrality
5. Related reports
List of Tables
Table 1 Country statistics Israel 2015
Table 2 Telephone network statistics 2015
Table 3 Broadband statistics 2015
Table 4 Mobile statistics 2015
Table 6 National telecommunications authorities
Table 7 Evolution of GDP and inflation in Israel 2000 - 2019

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