• PDF: Delivered by email usually within 4 to 8 UK business hours.

Israel Telecommunications Report 2013

  • Publication Date:December 2012
  • Publisher:Business Monitor
  • Product Type: Report
  • Pages:75
  • ISBN:490484

Israel Telecommunications Report 2013


Includes 3 FREE quarterly updates

BMI View: Competition in the mobile and internet markets has received a welcome boost following the
licensing of two new 3G mobile network operators and a host of mobile virtual network operators. The
existing players were cutting prices and unveiling 'unlimited call' schemes ahead of the May 2012
launches of HOT Mobile and Golan Telecom and this is reflected in lower ARPUs. While this move
benefits consumers, operators' margins are under pressure and - in order to contain costs - operators
such as Partner have begun laying off staff and streamlining their operations. Partner was itself put up
for sale in 2012, but Hutchison Whampoa ultimately decided not to complete the deal based on Partner's
current valuations. Regulatory moves to cut interconnection and roaming rates will further weigh on
operators and consolidation remains a distinct possibility.




Key Data


- Mobile subscriber numbers fell markedly in the period to Q112 as consumers switched to
MVNOs and, from Q212 to the two new mobile operators. We project continued growth in the
mobile market through to 2017, but this will largely cannibalise existing user bases.

- ARPU is expected to fall quite significantly between 2012 and 2017, mostly due to aggressive
price competition as well as regulator-imposed reductions to interconnection and roaming rates.





Key Trends

& Developments



Two new mobile network operators entered the market in May 2012, bringing the total number of
operators to five. In addition, a number of mobile virtual network operators (MVNOs) joined the fray
during H112, substantially increasing competition and forcing the existing players to respond with
heavily revised pricing plans, centering around 'unlimited' usage. The market was already shrinking as
some customers deferred renewing existing contracts or stopped using prepaid connections while they
waited to see what the new operators would offer in terms of pricing. In the meantime, a number of new
MVNOs took advantage of demand for low-cost services and succeeded in taking some market share for
themselves.

In October 2012, local reports suggested that Haim Saban (a former shareholder in Bezeq) was offering to
buy 44.5% of Partner Communications from controlling shareholder Scailex and minority investor Bank
Leumi for a total consideration of up to ILS1bn. Nothing had been confirmed or denied at the time of
writing, but Scailex is known to be looking for a buyer for its stake in Partner after an earlier deal for
Hutchison Whampoa to acquire 75% of Scailex and thus control of Partner failed due to arguments over
unpaid loans and a poor performance by Partner in H112.
BMI Industry View 5
SWOT Analysis .... 6
Israel Mobile Industry SWOT .... 6
Israel Fixed-Line/Internet SWOT ...... 6
Israel Political SWOT .... 7
Israel Economics SWOT 8
Israel Business Environment SWOT .. 8
Business Environment ..... 9
Middle East And North Africa .... 9
MENA Telecom Risk/Reward Ratings, Q113 ........... 13
Israel ... 13
Industry Forecast Scenario ........ 16
Mobile . 16
Table: Mobile Data And Forecasts, 2010-2017 ....... 16
ARPU ....... 18
Table: Telecoms Sector - ARPU - Historical Data & Forecasts ....... 18
Fixed-Line ....... 20
Table: Fixed-Line Data And Forecasts, 2010-2017 . 20
Internet ........... 21
Table: Internet Data And Forecasts, 2010-2017 ...... 21
Market Overview 23
Mobile ...... 23
Regional Perspective ......... 23
Table: Heading: Israel Mobile Market Regional Comparisons, 2011 ...... 23
Key Developments 24
Mobile Growth ..... 25
Table: Israeli Wireless Market, Q212 .......... 26
Usage (ARPU) 28
3G 29
MVNOs .... 31
Mobile Content .... 32
Mobile Operator Data ...... 34
Table: Israel Mobile Market Overview ........ 34
Table: Cellcom 34
Table: Partner 35
Table: Pelephone ......... 37
Table: MIRS .... 38
Mobile Content .... 39
Regional Overview 39
Fixed Line 43
Table: Bezeq's Operating Statistics, 2005-Q212 ..... 45
Broadband ........... 46
Table: Bezeq's ADSL Indicators, 2007 - Q212 ........ 47
Industry Trends & Developments ..... 48
Israel Telecommunications Report 2013
Business Monitor International Ltd Page 4
Regulatory Environment . 49
Israel: Regulatory Bodies And Their Responsibilities ........... 49
Legislation And Market Liberalisation ........ 49
Regulation ....... 50
Regulatory Developments ........ 50
Competitive Landscape . 53
Table: Key Players In Israel's Telecommunications Sector .. 53
Table: Telecoms Operators' Revenues And Other Information, 2007-2011 ........... 53
Company Profiles ........... 54
Bezeq/Pelephone .......... 54
Partner Communications ......... 57
Regional Overview ....... 60
Vendor Profile: Alcatel-Lucent ..... 60
Table: Alcatel-Lucent - Quarterly Breakdowns Of Revenue By Segments, 2011-2012 (EURmn) ... 60
Demographic Forecast ... 65
Table: Israel's Population By Age Group, 1990-2020 ('000) . 66
Table: Israel's Population By Age Group, 1990-2020 (% of total) .... 67
Table: Israel's Key Population Ratios, 1990-2020 ... 68
Table: Israel's Rural And Urban Population, 1990-2020 ..... 68
Glossary Of Terms .......... 69
Table: Glossary Of Terms ........ 69
BMI Methodology 70
How We Generate Our Industry Forecasts ....... 70
Table: Key Indicators For Telecommunications Industry Forecasts .. 70
Telecoms Business Environment Ratings .......... 72
Risk/Reward Ratings Methodology . 72
Table: Ratings Indicators ......... 73
Weighting ........ 74
Table: Weighting Of Indicators 74
Sources ..... 74
+44 20 8816 8548

Ask a question about Israel Telecommunications Report 2013

Enter the characters you see in the picture below
Captcha