IDC Israel, the international research company’s Israeli representative, has completed a new research about the Israeli telecom market. The research analyses the years 2000-2001 and also offers a detailed forecast for 2002-2006 for the fixed-line and wireless telephony markets in terms of voice and data services. In addition, the research analyses the international calls market and reviews the regulation of the telecommunications market and the image of wireless and fixed-line telecommunications operators in Israel.
According to IDC’s research about the Israeli telecommunications market, expenditure on fixed-line telecommunications services in Israel totaled about $1.6 billion in 2000 and is expected to reach about $2 billion in 2006. Voice services will continue to be the dominant application in the domestic fixed-line telecommunications, but their share in the total revenues of telecommunications services providers will decline from 83.3% in 2000 to about 72.8% in 2006. The business sector yielded about 51% of the total revenues from fixed-line telecommunications services in 2000 and revenues from this sector are expected to rise to about 61% in 2006.
Revenues from voice services also attained a high market share of 89% in the international telecommunications market, which was estimated to be about $219 million in 2000. Expenditure on international telecommunications will total about $375 million in 2006, but while the number of overseas call minutes is expected to rise by 10% annually, revenues from voice services will grow by only about 6%.
IDC Israel’s telecommunications research includes analysis of the regulator’s licensing conditions for domestic operators and points to the demand to establish head-on competition with the range of services offered by Bezek. This demand is the main obstacle to competition. IDC believes that the private sector will inflict losses on new competitors, due to the lack of value-added services offerings, while the business sector is ready to be a platform for profitable competition. This belief is based on the expansion of providing the majority of advanced business services via the organizations’ data telecommunications infrastructure. According to IDC Israel’s telecom market research, there were about 42,000 local data telecommunications connections in 2000 in Israel and the market was valued at about $230 million. This market is expected to reach $439 million in 2006. Technology for transmitting data over Internet protocol (IP) will lead the market and represent the quickest growth over the next few years. The number of Internet-based connections will grow at the average annual rate of 62% while spending on using this technology will grow at the average annual rate of 50%.
The international data telecommunications market, that was worth $25 million in 2000, will grow quickly and is expected to reach about $78 million in 2006. Over the same period, the number of international data telecommunications connections will triple too more than 14,000. Internet-based data telecommunications connections will lead the growth trend in this market too.
IDC Israel’s Israeli telecommunications market research analyses data from 2000-2001 and offers a forecast for 2002-2006 for wireless and fixed line telephony markets in terms of voice and data services. It also provides a market analysis and comparative data, segmentation of communications expenditure and the revenues from added value services, analysis of the penetration of services and a segmentation of private and business users. In addition, the research analyses international calls and reviews regulation of the telecommunications services market and the profile of wireless and fixed line operators in Israel.
Published by Israel's Business Arena on 02 January 2002