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Israel - Telecoms, Mobile and Broadband


Attention: There is an updated edition available for this report.

Israel has a very competitive and advanced telecommunications market with very high mobile and household broadband penetration rates, plus a developed pay-TV market. This report introduces the key aspects of the market with statistics and analysis. Subjects covered include:

  • Key statistics;
  • Regulatory environment and structural reform;
  • Major players and the changes in ownership;
  • Infrastructure ;
  • Mobile voice and data markets;
  • Broadband;
  • The new NGN;
  • Average Revenue per User (ARPU);
  • Convergence and Pay TV market.


There has been enormous upheaval in the Israeli telecommunications sector and nearly all players in this very competitive market have changed ownership in the past two years. With the mobile, household broadband and pay-TV markets mostly saturated, they are positioning themselves for the dramatic changes taking place as the hitherto separate sectors converge.

Whilst incumbent Bezeq still has the major share of the domestic fixed-line market, competitors formerly restricted to international calls, Internet provision, cable TV or mobile services are rapidly making an impact using VoIP, or Voice over Broadband as it is usually referred to in Israel. Bezeq’s market share has dropped to a point where restrictions previously in place on it bundling its services via triple play are being lifted.

Further changes are on the way as Bezeq is making great strides in the development of a Fibre to the Curb Next Generation Network. Launched in September 2009, Bezeq is on track to make the NGN available to around 50% of households by end-2010 and 90% of households by end-2012. Over 25% of households were connected by mid-2010. Previously the ADSL network of Bezeq and the cable network of HOT had shared the broadband infrastructure market on a 60/40 basis. The ISP market was shared roughly equally between three major players but with HOT seemingly about to receive an ISP licence and Bezeq able to bundle its services, changes are likely.

Meanwhile the three major mobile providers, plus one smaller provider, are preparing for the introduction of MVNOs and are concentrating their energies on expanding their 3G and HSPA markets and also moving into the fixed-line market. Over 40% of subscribers were 3G subscribers by mid-2010.

Over 80% of Israeli households subscribe to cable or satellite TV, mostly digital, provided by HOT and YES TV respectively. Digital Terrestrial TV (DTTV) was launched in 2009 and appears to be impacting the sector.

Market highlightsIsrael excels at start-up companies and is a leader in new technology. The economy faltered in late 2008/09 due to the Global Financial Crisis but was hit only lightly and has quickly bounced back. In mid-2010 Israel become a member of the OECD.The main players in the telecommunications market are almost entirely Israeli owned but are very dynamic and competitive.New VoB providers are winning a substantial share of the domestic fixed-line market. The international market was already divided between three major players.Falling fixed-line ARPU is offset by rising broadband ARPU.Household broadband penetration is already over 75%. Bezeq’s new FttC NGN will impact the broadband access market, currently shared between Bezeq’s ADSL service and HOT’s cable service.ARPU is falling in the mobile sector due to intense competition despite rising percentages of revenue from data services.Estimated market penetration rates in Israel’s telecoms sector - end 2010

Market Penetration rate
Fixed 40%
Mobile 137%
3G 64%
Broadband (households) 80%
Pay TV 80%

 Data in this report is the latest available at the time of preparation and may not be for the current year.

1. Key Statistics
2. Overview of Egypt’s Telecom Market
3. Regulatory Environment
3.1 Background
3.2 Creation of a new regulatory framework
3.3 Telecommunications Master Plan
3.4 Legislative reform
3.5 Regulatory authority
3.5.1 National Telecommunication Regulatory Authority
3.5.2 Ministry of Communications & Information Technology
3.6 Telecom sector liberalisation in Egypt
3.6.1 International gateway licences
3.6.2 International submarine cable licence
3.6.3 Second fixed-line licence
3.6.4 Triple-play licences 2010
3.6.5 Fourth mobile licence
3.7 Privatisation of Telecom Egypt
3.8 Interconnection
3.9 Tariffs
4. Fixed Network Market
4.1 Overview
4.2 Fixed-line statistics
5. Major Fixed Network Operators
5.1 Telecom Egypt
5.1.1 Wholesale
5.2 Orascom Telecom
6. Telecommunications Infrastructure
6.1 National telecom network
6.2 Public payphones
6.3 Wireless local loop (WLL)
6.4 Next Generation Networks (NGN)
6.5 FttH
6.6 International infrastructure
6.6.1 Terrestrial
6.6.2 Submarine fibre
6.6.3 Satellite
7. Internet Market
7.1 Overview
7.2 Internet statistics
7.3 Free Internet project
7.4 Affordable Personal Computer (APC) programs
7.5 E-schools
7.6 Public Internet access locations
7.6.1 Multipurpose Community Telecentres (MCTs)
7.7 ISP and data service providers in Egypt
7.7.1 Data service operators
7.7.2 Data centres
7.8 ISP market
7.8.1 EgyNet
7.8.2 LINKdotNET
7.8.3 Nile Online
7.8.4 TE Data
7.8.5 Other ISPs
7.9 Internet gateways
7.10 Cairo Regional Internet Exchange (CRIX)
7.11 VSAT networks
8. Broadband Market
8.1 Broadband initiative
8.2 DSL
8.3 Wireless broadband
8.3.1 WiFi
8.3.2 WiMAX
8.3.3 CDMA2000 1x EV-DO
8.4 Broadband via satellite
8.5 Broadband over Powerlines (BPL)
9. Convergence
9.1 VoIP telephony
9.2 Next Generation Networks (NGN)
9.3 IPTV
9.4 E-commerce
9.4.1 E-commerce initiatives
9.4.2 E-commerce legislation
9.5 Information Highway Project
9.6 E-government
9.7 E-learning
9.8 GLORIAD (Academic sector)
10. Mobile Communications
10.1 Overview of Egypt’s mobile market
10.1.1 Telecom Egypt’s mobile deal
10.1.2 Third mobile licence
10.1.3 Fourth mobile licence
10.1.4 Mobile statistics
10.2 Regulatory issues
10.2.1 Tariffs
10.2.2 International gateways
10.2.3 Mobile Number Portability (MNP)
10.2.4 Registration of user details
10.2.5 GPS ban
10.3 Major mobile operators
10.3.1 Mobinil (ECMS)
10.3.2 Vodafone Egypt
10.3.3 Etisalat Misr
10.4 Mobile voice services
10.4.1 Prepaid services
10.4.2 Satellite mobile
10.4.3 Mobile VoIP
10.5 Mobile data services
10.5.1 SMS
10.5.2 MMS
10.5.3 WAP
10.5.4 GPRS and EDGE
10.5.5 Mobile TV
10.6 Third generation (3G)
10.6.1 Mobile broadband pricing
10.7 Mobile content and applications
10.7.1 Mobile banking
11. Forecasts
11.1 Forecasts - fixed-line services 2012; 2015
11.2 Forecasts - Internet users 2012; 2015
11.3 Forecasts - broadband subscribers 2012; 2015
11.4 Forecasts - mobile subscribers 2012; 2015
12. Glossary of Abbreviations
List of Tables and Exhibites
Table 1 - Country statistics Egypt - 2010
Table 2 - Fixed-line network statistics - March 2010
Table 3 - Internet provider statistics - 2010
Table 4 - Internet user statistics - February 2010
Table 5 - Broadband statistics - March 2010
Table 6 - Mobile statistics - March 2010
Table 7 - National telecommunications authorities
Table 8 - Fixed lines in service and teledensity - 1995 - 2011
Table 9 - Telecom Egypt key performance indicators - 2003 - 2009
Table 10 - Public payphones by operator - 2002 - 2009
Table 11 - Internet users and penetration rate - 1995; 1997; 1999 - 2011
Table 12 - DSL subscribers in Egypt, total vs TE - 2002 - 2010
Table 13 - Mobile subscribers, annual change and penetration - 1996; 1998; 2000 - 2011
Table 14 - Mobile subscribers by operator, technology and annual change - March 2010
Table 15 - Mobinil active subscribers - 1998; 2000 - 2010
Table 16 - Mobinil key performance indicators - 2002 - 2010
Table 17 - Mobinil blended monthly ARPU and AUPU - 2002 - 2010
Table 18 - Vodafone Egypt subscribers - 1998; 2000 - 2010
Table 19 - Vodafone Egypt blended monthly ARPU - 2003 - 2009
Table 20 - Forecast fixed-line and fixed-wireless subscribers - 2012; 2015
Table 21 - Forecast Internet users - 2012; 2015
Table 22 - Forecast - broadband subscribers - 2012; 2015
Table 23 - Forecast - mobile subscribers - 2012; 2015
Exhibit 1 - Major licences issued in Egypt - June 2010
Exhibit 3 - An analysis of Egypt’s third mobile licence valuation
Exhibit 4 - Vodafone Egypt’s public listing and delisting

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