Mobile operators in Israel have increasingly felt the pressure from a highly competitive market, resulting in declining profits and revenue. Mobile ARPUs have dropped over the past few years for all the major operators, with the market accommodating six mobile operators.
In 2019 the government begun its tender process for 5G licensing; with the expectation that some operators may join together in the bidding process in order to meet the financial requirements.
While 4G coverage in Israel is significant, the adoption of such services remains low and this has been partly attributed to the prohibitive cost of services and devices.
Israel has a very high household internet penetration rate, almost all of which are broadband connections. · DSL subscriptions hold the largest market share of fixed broadband subscriptions. Fibre-network deployment is well underway as well, led by the Israel Broadband Company (IBC). Bezeq and HOT are both subject to broadband universal service obligations which has resulted in fixed broadband being available to 99% of all households.
Interest in the high-tech sector is still a key growth area for Israel with many start-ups operating. Recently Israel turned its attention towards the opportunities presented by the growing cyber-security sector.
BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.
On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.
Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.
The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.
Key developments:
In 2019 the regulator launched a tender of 5G spectrum in the 700 MHz, 2600 MHz and 3500–3800 MHz bands.
In 2018 Israel gained a new mobile operator with 018 Xfone launching 4G mobile services under the We4G brand.
There are concerns being raised that telecoms infrastructure investment is falling behind in Israel.
In 2018 Bezeq was directed by the Ministry of Communications to begin offering wholesale telephony services.
Assessment of the global impact of COVID-19 on the telecoms sector.
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
COVID-19 and its impact on the telecom sector
Economic considerations and responses
Mobile devices
ubscribers
Infrastructure
Telecommunications market
Overview
Market analysis
Regulatory environment
Historic overview
Regulatory authority
Privatisation of Bezeq
Earlier privatisation attempts
Telecom sector liberalisation in Israel
Liberalisation begins
Early moves towards fixed-line market liberalisation
Kroll Committee
Licences awarded to cable TV companies
Further competition in the international calls market
New domestic voice service licences and Bezeq’s reaction
Licensing of VoIP/VOB
Interconnect
Gronau Commission
Hayek Commission
Alternative fibre network operator
Number Portability (NP)
Net Neutrality
Wholesale
Overview
Fixed network operators
Introduction
Bezeq
HOT Telecom
013 NetVision (Cellcom)
012 Smile Telecom (Partner)
Xfone 018/Marathon Telecommunications
Telecommunications infrastructure
National telecom network
International infrastructure
Submarine cable networks
Satellite networks
Smart infrastructure
M2M/IoT
Smart grids
Fixed broadband market
Market analysis
Broadband statistics
Digital Subscriber Line (DSL) networks
Fibre networks
Unlimited (Israel Broadband Company)
Fixed wireless (WiFi)
Digital economy
Start-ups
e-Banking
Digital media
Videostreaming
Mobile market
Market analysis
Mobile statistics
General statistics
Mobile broadband statistics
Mobile infrastructure
5G
4G LTE
3G
GSM
Regulatory issues
Connection charges
Licensing
LTE Spectrum
Roaming
MTRs
Early termination fee reduction
MNP
Network sharing
Major mobile operators
Cellcom
Partner Communications Company (formerly Orange)
Pelephone (Bezeq)
HOT Mobile
Golan Telecom (acquired by Electra in 2017)
MVNOs
Historical background
Recent developments
Mobile handsets
Appendix – Historic Data
Glossary of abbreviations
Related reports
List of Tables
Table 1 – Top Level Country Statistics and Telco Authorities - Israel – 2019
Table 2 – Israel - evolution of GDP and inflation in Israel – 2014 – 2019