Research and Markets: Israel's Telecoms, Mobile and Broadband 2010 Market 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.

The Israeli telecommunications sector

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. Bezeqs 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.