Telecom Service Revenue in Israel is Estimated to Reach $4.7bn (or 1.6% of GDP) in 2015

Date: 2015-09-18

Telecoms growth is lower than average when compared to other countries in the region, but the overall size of the telecoms market is significant in view of Israel’s relatively small population. Unlike other telecom markets in the region, telecom service revenue growth will mainly be driven by fixed line services following recently introduced reforms for network sharing and wholesale services.

– Telecom service revenue in Israel is estimated to reach $4.7bn (or 1.6% of GDP) in 2015, registering a decline of 9.5% over the previous year. Mobile data will continue to be the highest growth market, contributing to 25.6% of overall telecom revenue in 2015. Mobile voice revenues are declining due to intensified competition and a saturated voice market

– Pyramid Research expects to see total telecom service revenue grow at a CAGR of 1.8% during 2015-2020 to reach $5.1bn 

– The top two operators, Bezeq (including Pelephone) and HOT (including HOT Mobile), will account for 57.5% of overall service revenue in 2015. The Israeli telecom market will remain highly competitive due to network sharing deals and the introduction of wholesale services 

– Adoption of 3G technologies will reach 71.5% of the mobile subscription base in 2015 and will decline due to operators shifting their focus to LTE network expansion and service roll out 

– Over the next five years, operators should seize opportunities related to LTE service roll outs, network expansions, and IPTV and VoD services. Vendors should position themselves to support operators’ network upgrades and expansion plans


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