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Israel Telecom Market Size (2024 - 2029)

The Israeli telecom industry is experiencing growth in its market size, driven by significant investments in network capacity expansion, particularly in fiber and wireless deployments. The high household broadband penetration and the focus on fiber-network deployment are key factors contributing to this growth. The transition to 4G and 5G networks is ongoing, with major telecom operators conducting trials and demonstrations to enhance their service offerings. Despite the challenges posed by the COVID-19 pandemic, which delayed some plans, the increased broadband consumption during lockdowns has created new opportunities for market expansion.

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Market Size of Israel Telecom Industry

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

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 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
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Israel Telecom Market Size Summary

The Israeli telecom industry is poised for steady growth, driven by significant investments in research and development by key players such as Bezeq, Pelephone, Cellcom, and AT&T. The market is experiencing a shift towards advanced network infrastructures, with a strong emphasis on fiber and wireless deployments to meet the increasing demand for high-speed internet services. The transition to 4G and 5G networks is underway, supported by the expansion of the device ecosystem and strategic initiatives like the phased shutdown of 2G and 3G networks. Despite the challenges posed by the COVID-19 pandemic, which delayed some sector plans, the industry saw a surge in broadband consumption, creating new growth opportunities. The focus on expanding broadband portfolios is evident, with companies like Bezeq introducing high-speed routers and services to enhance connectivity.

The market landscape is moderately fragmented, with ongoing partnerships and advancements shaping the competitive environment. The Israeli Ministry of Communications is actively involved in regulatory reforms and infrastructure developments, such as the reduction of fixed phone line prices and the separation of infrastructure from internet service providers. The adoption of fiber-based broadband services is expected to replace copper networks, driving growth in both urban and rural areas. Additionally, the rise of OTT services and increased smartphone adoption are reshaping consumer behavior, leading to a decline in traditional PayTV subscriptions. This shift presents new opportunities for telecom operators to capitalize on the growing demand for mobile-based and streaming services, further expanding their market reach.

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Israel Telecom Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Ecosystem Analysis

    3. 1.3 Industry Attractiveness- Porter's Five Force Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of the Impact of COVID-19 on the Industry Ecosystem

    5. 1.5 Regulatory Landscape in Israel

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Services

      1. 2.1.1 Voice Services

        1. 2.1.1.1 Wired

        2. 2.1.1.2 Wireless

      2. 2.1.2 Data and Messaging Services (Coverage to include Internet & Handset Data packages, and Package Discounts)

      3. 2.1.3 OTT and PayTV Services

Israel Telecom Market Size 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.

Israel Telecom Market Report Snapshots

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