logo

Israel Telecom Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Israel Telecom Companies and the Market is Segmented by Services, Data and Messaging Services, and OTT and PayTV Services. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Home Market Analysis Technology, Media and Telecom Research Telecom Research Telecom Industry in Israel

Israel Telecom Market Size

Israel Telecom Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 1.00 %
Market Concentration Medium

Major Players

Israel Telecom Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Israel Telecom Market with other markets in Technology, Media and Telecom Industry

Automation

Digital Commerce

Electronics

Information Technology

Media and Entertainment

Security & Surveillance

Israel Telecom Market Analysis

The revenue from the Israeli Telecom Market is expected to register a CAGR of 1.0% over the next five years. Key telecom companies, such as Bezeq, Pelephone, Cellcom, and AT&T, are based in Israel and promote innovation by making significant R&D investments consistently.

  • To overcome the growing demand, the Israeli telecom industry made further strides in expanding its network capacity with fiber and wireless deployments. Israel's Household broadband penetration is high, with a focus on fiber-network deployment. For instance, the Bezeq fiber optic network offers two new broadband speeds, 600 Mbps (Up to 60) at a price of USD 31.74 dollars per month, and 1 Gbps (Up to 100), at the cost of USD 34.65 dollars per month.
  • The transition to 4G and 5G is still rising in the country due to expanding new networks and the expansion of the device ecosystem. For instance, Israel's Ministry of Communications decided to establish a tentative outline to shut down 2G and 3G networks by the end of 2025.
  • 5G services still need to be fully deployed in Israel, but key telecom operators completed 5G demonstrations and trials over the past two years. For instance, Cellcom was formally awarded a 5G license from the Israel Ministry of Communication (MoC). Cellcom 5G network is deployed to provide 5G services for the location, including Ashdod, Haifa, Jerusalem, Netanya, Rishon LeZion, Petah Tikva, and Tel Aviv.
  • Israeli telecom players are focused on implementing more wireless internet services. For instance, TCS Telecom offers three WiFiBER (Hot internet wifi) deals. These wireless broadband services will further help customers by providing high-speed connectivity services.
  • The COVID-19 pandemic had less impact on the Israeli telecom industry, though the telecom sector's plans were delayed due to it. But during the COVID-19 lockdown, broadband consumption increased and created new growth opportunities for the telecom market.

Israel Telecom Market Trends

This section covers the major market trends shaping the Israel Telecom Market according to our research experts:

Rising demand for fixed broadband services

  • Key players in the telecom market are focused on expanding their broadband portfolio. For instance, Bezeq launched the latest model known as Be router Be Fibe. This new device facilitates broadband speed at 2.5 Gbps and supports the connection of 128 devices in parallel. The router is being provided to customers on a rental basis at the cost of USD 5.79 dollars per month.
  • Increasing penetration of internet services through wireless mode and the copper cables network is expected to be replaced by fiber-based cables in the coming years. For instance, Israel's Ministry of Communications (MoC) introduced policy principles related to the switch-off of copper infrastructure. Instead of copper-based services fiber based cables need to be deployed.
  • The demand for deploying fiber broadband services is growing. For instance, Israel Broadband Company (IBC). Bezeq and HOT offer fixed broadband services to 99% of all households. Such initiatives are expected to drive growth in fixed broadband services over the next five years.
  • In coming years, most of the investment in the telecom sector would be focussed on deploying fiber-based broadband services in rural and urban areas. For instance, Bezeq saw a rapid increase in fiber-based subscriptions, up to 161,000 in the mid-current year. The customers will slowly migrate to high-speed connectivity (fiber-based broadband services), thus creating new growth opportunities for the telecom market.
  • According to the Ookla Speedtest Global Index, Israel ranked 33rd with a median fixed broadband download speed of 95.54 Mbps in October this year. Fixed broadband services penetration is growing significantly and thus increasing the demand for high-speed wireless services.
Israel Telecom Market: Median Fixed Broadband Speed, in Mops, Israel, 2022

Rising demand for OTT services

  • PayTV penetration in Israel is expected to decrease over the next five years due to subscription loss across cable and DTH segments with the growing popularity of OTT (over-the-top) video services in the country. For instance, Yes Tv is Israel's most significant streaming service that, includes 140 channels and a VOD service including Disney+ and Netflix.
  • Telecom service revenues increased as users mainly adopted work-from-home practices and spent more time streaming video on OTT platforms, games, and other forms of entertainment during the COVID-19 lockdown. For instance, Free TV is expected to be launched by the end of this year, which offers the next generation of OTT-based TV platforms in Israel.
  • OTT service providers such as Netflix and Prime Video will further create new growth opportunities for the telecom market. Adoption of video streaming platforms boosted by increasing demand for both local and international shows and video content.
  • Adults in the country are increasingly using smartphones for entertainment at home. The increasing smartphone adoption will further increase the demand for OTT services. For instance, Cellcom's mobile subscriptions increased to 3.346 million this year compared with the previous year's mobile subscriptions (3.226 million last year).
  • According to the Ookla Speedtest Global Index, Israel ranked 69th with a median mobile download speed of 29.60 Mbps in October this year. Since smartphone penetration is growing, customers are migrating to mobile-based OTT services, thus creating new growth opportunities for the telecom market.
Israel Telecom Market: Median Mobile Speed, in Mbps, Israel, 2022

Israel Telecom Industry Overview

The Israeli Telecom Market is moderately fragmented due to the ongoing partnerships and recent advancements in the market. Some major players in the market studied include Bezeq, Pelephone, Cellcom, Golan telecom, and AT&T.

In April 2022, Israel's Ministry of Communications (MoC) announced the adoption of a reduction in Bezeq's fixed phone line price and the execution of a reform of the country's fixed broadband sector that splits between infrastructure and internet service provider.

In February 2022, Israel's Ministry of Communications (MoC) announced its approval to sell a controlling stake in local mobile network operator (MNO) 018 Xfone.

Israel Telecom Market Leaders

  1. Bezeq

  2. Pelephone

  3. Cellcom

  4. Golan telecom

  5. AT&T

*Disclaimer: Major Players sorted in no particular order

Israel Telecom Market Concentration
Need More Details on Market Players and Competitors?
Download PDF

Israel Telecom Market News

  • August 2022: The Ministry of Communications (MoC) approved a passive infrastructure cooperation deal between the cellco, Pelephone, and PHI Networks. Later, it would begin the joint venture partnership between Partner Communications and HOT Mobile. This deal aimed to expand its passive infrastructure cooperation at cell sites.
  • July 2022: CYTA signed a deal securing its participation in the USD 850 million East Med Corridor (EMC) submarine cable system. The new submarine cable will connect Singapore and France, with landing points in Saudi Arabia, Israel, Cyprus, Greece, and Italy. The submarine cable project construction work is expected to be completed by the end of 2025.

Israel Telecom Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Ecosystem Analysis

    3. 4.3 Industry Attractiveness- Porter's Five Force Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of the Impact of COVID-19 on the Industry Ecosystem

    5. 4.5 Regulatory Landscape in Israel

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rising demand for 5G

      2. 5.1.2 Growth of IoT usage in Telecom

    2. 5.2 Market Restrain

      1. 5.2.1 The emergence of stiff competition is a concern for the industry

    3. 5.3 Analysis of the Market based on Connectivity (Coverage to include In-depth Trend Analysis)

      1. 5.3.1 Fixed Network

        1. 5.3.1.1 Broadband (Cable Modem, Wireline-fiber, Wireline DSL, Fixed Wi-Fi ), Trends regarding ADSL/VDSL, FTTP/B, Cable Modem, FWA, and 5G FWA )

        2. 5.3.1.2 Narrowband

      2. 5.3.2 Mobile Network

        1. 5.3.2.1 Smartphone and Mobile Penetration

        2. 5.3.2.2 Mobile Broadband

        3. 5.3.2.3 2G, 3G, 4G and 5G Connections

        4. 5.3.2.4 Smart Home IoT and M2M Connections

    4. 5.4 Analysis of Telecom Towers (Coverage to include In-depth Trend Analysis of Various Types of Towers, like, Lattice, Guyed, Monopole, and Stealth Towers)

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Services

      1. 6.1.1 Voice Services

        1. 6.1.1.1 Wired

        2. 6.1.1.2 Wireless

      2. 6.1.2 Data and Messaging Services (Coverage to include Internet & Handset Data packages, and Package Discounts)

      3. 6.1.3 OTT and PayTV Services

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Bezeq

      2. 7.1.2 Pelephone

      3. 7.1.3 HOT Telecom

      4. 7.1.4 Cellcom

      5. 7.1.5 Golan Telecom

      6. 7.1.6 018 Xfone (we4G)

      7. 7.1.7 Orange

      8. 7.1.8 TCS Telecom

      9. 7.1.9 Telefonica

      10. 7.1.10 AT&T

    2. *List Not Exhaustive

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

**Subject to Availability
You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Israel Telecom Industry Segmentation

Telecom or telecommunication is the long-range transmission of information by electromagnetic means.

The Israel Telecom Market includes in-depth trend analysis based on connectivity like Fixed Networks, Mobile Networks, and Telecom Towers. The telecom services are divided into Voice Services (Wired and Wireless), Data and Messaging Services, and OTT and PayTV Services. Several factors, including an increasing demand for 5G, will likely drive the adoption of telecom services.

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Services
Voice Services
Wired
Wireless
Data and Messaging Services (Coverage to include Internet & Handset Data packages, and Package Discounts)
OTT and PayTV Services
Need A Different Region Or Segment?
Customize Now

Israel Telecom Market Research FAQs

The Israel Telecom Market is projected to register a CAGR of 1% during the forecast period (2024-2029)

Bezeq, Pelephone, Cellcom, Golan telecom and AT&T are the major companies operating in the Israel Telecom Market.

The report covers the Israel Telecom Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Israel Telecom Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Israel Telecom Industry Report

Statistics for the 2024 Israel Telecom market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Israel Telecom analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Israel Telecom Market Report Snapshots

close-icon
80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!

Israel Telecom Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)