BMI View: We have made some forecast revisions in the 2017 Israel telecommunications report to account for the most recent available market data. Our overall outlook remains unchanged this year as we remain concerned about the sustainability of the Israeli mobile market business model as a multitude of operators are competing i n the market with diverging business strategies . The traditional three large operators , Pelephone, Cellcom and Partner , are losing subscribers at an alarming rate . Furthermore, the financial health of these three companies is dwindling rapidly . The market is being aggressively forced to b ear the price competitiveness pres sures being exerted by Golan and MIRS, both low- cost operators , along with a multitude of MVNOs. The low-cost operators have significantly altered the competitive dynamics of the market and we fear that organic growth may not be able to return. The three large companies may struggle to find new subscribers as 3G/4G uptake and data services, high drivers of growth, are not present in the market to a degre e that will allow for easy capitalis ation.
|A Saturated Market|
|e/f = BMI estimate/forecast. Source: BMI, operators|
Latest Updates & Industry Developments
The mobile market ended June 2016 with a total of 10.009mn subscribers, representing a y-o-y contraction of 5.0% as the penetration rate fell to 122.3%. We do not expect significant organic subscriber growth over the course of our forecast period as our forecast envisions a total of only 10.426mn subscribers by YE2020.
Pelephone, Partner and Cellcom, the three largest operators are rapidly losing revenue and subscribers at an alarming rate to low-cost providers such as MIRS and Golan. The low-cost providers have been able to aggressively undercut the market and thus capture large market shares.
The sale of Golan remains a topic of contention as the company has remained embroiled in acquisition talks for over a year. As of November 2016, multiple local and international investors are in talks to buy the company. Golan is further engaged in a multimillion-dollar lawsuit with rival Cellcom relating to the payment of roaming fees.
The Israel Telecommunications Report features BMI Research's independent industry forecasts on the future strength of Israel's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Israel Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Israel.
- Benchmark BMI's independent telecoms industry forecasts for Israel to test other views - a key input for successful budgeting and strategic business planning in the Israeli telecoms market.
- Target business opportunities and risks in Israel's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Israel.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
BMI Industry Forecast Scenario
Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
- Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
- Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.
BMI’s Telecommunications Risk Reward Index
BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:
- Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
- Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.