---
title: Market Uncertainty Ahead for Established Players in Israel - Developing Telecoms
description: Israel boasts one of the few markets in the Middle East with strong competition across all market sectors,
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Israel boasts one of the few markets in the Middle East with strong competition across all market sectors...

Israel boasts one of the few markets in the Middle East with strong competition across all market sectors, according to Research & Markets. Within the fixed telephony and broadband market, telecoms incumbent Bezeq is losing market share to major cable TV operator HOT and alternative telcos.

Much of this healthy competition has been made possible by a number of regulatory initiatives, initially the encouragement of infrastructure-based competition and later the development of a viable wholesale market. Unlike other Middle East markets the government no longer holds any significant stake in the incumbent and hence is able to focus on encouraging competition.

In the fixed broadband market healthy infrastructure competition exists between DSL and cable. Regulatory measures support a significant wholesale market. The incumbent is currently brining fibre closer to end users, reducing the amount of copper and boosting speeds. HOT has responded by implementing DOCSIS 3.0 technology to offer speeds of up to 100Mb/s. The two major players may be joined by a third in 2012 if a government proposal to introduce a fibre operator backed by the incumbent power utility comes to fruition.

Israel has four mobile network operators and very high penetration rates. 3G/HSPA networks support the operators' push into the developing mobile broadband market. This has not stopped the government introducing more competition, recently awarding two 3G licences, removing early termination fees, further reducing mobile termination rates (MTR)s and introducing a number of MVNOs. Faced with such market uncertainty and to boost growth prospects the major mobile operators have recently merged with fixed line counterparts to offer integrated services.

 

 

   
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