2013-12-04 04:45:14 - Recently published research from Business Monitor International, "Israel Telecommunications Report 2014", is now available at Fast Market Research
BMI Industry View
The increase in competition in Israel's mobile market, following the arrival of new MNOs and MVNOs, and cuts to interconnection rates in 2012 led to a sharp decline in key operational and financial indicators, notably ARPUs and voice revenues, during FY12 and H113. We expect operators to respond to the erosion of their top line financial results by expanding their high value service offerings and migrating existing customers unto postpaid subscriptions. We also expect mobile operators with high-speed fixed infrastructure to perform strongly in terms of revenue and subscriptions growth during our forecast period, though to 2017, by cross-selling mobile, fixed-line and pay-TV services. This strategy has already proved successful for some operators and will be vital for
reducing churn amid intense competition in the market.
Full Report Details at
- www.fastmr.com/prod/723467_israel_telecommunications_report_2014 ..
* Mobile subscriptions grew marginally by 0.5% y-o-y in the 12 months to June 2013. The slow growth is attributable to net subscription losses of 126,000 during H113.
* The rate of decline of the market share weighted average ARPU is slowing down, following a decline of just 4.7% in H113 compared to a decline of 14% in FY12.
* The fixed telephony and fixed broadband markets recorded positive growth in 2012, despite the high penetration of mobile voice and data services.
Key Trends & Developments
Israel's Ministry of Communications (MoC) has made proposals that will prevent telecoms companies from blocking or limiting network traffic, applications or equipment on their networks. The government has proposed an amendment that even equipment will be included in net neutrality, ensuring all players in the telecoms market are ascribed the same rules. Israel's net neutrality law will prevent operators from prioritising their own services over those provided by third parties and also restricting the use of built in features such as mobile Wi-Fi hotspots or using a device on a different network. The MoC's decision to regulate net neutrality puts Israel with a small group of countries that have legislated on the issue. BMI believes other countries will follow suit, as a move to protect consumers. Nevertheless, the issue remains difficult for telecoms operators as the requirements for network spend are a heavy burden but they are required to ensure their networks can meet the ever growing content demands.
Israel's leading telecoms operators reported mixed financial results for the first six months of 2013. While fixed line incumbent Bezeq reported an increase in profits, driven by its focused policy of initiating streamlining and efficiency measures across all the segments, in salaries and in general operating expenses, Cellcom and Partner reported much weaker results for the same period owing to sharp declines in mobile revenues.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Telecoms Sector - Mobile Historical Data And Forecast, 2010 - 2017
- Table: Telecoms Sector - ARPU Historic Data And Forecast, 2010 - 2017
- Table: Telecoms Sector - Fixed-Line Historic Data And Forecast, 2010 - 2017
- Table: Telecoms Sector - Internet Historic Data And Forecast, 2010 - 2017
Industry Risk Reward Ratings
- Industry Rewards
- Country Rewards
- Industry Risks
- Country Risks
- Table: MENA Risks/Rewards Ratings, Q1 2014
- Table: Regional Perspective
- Table: Israeli Mobile Market, Q213
- Table: Market Overview
- Table: Cellcom
- Table: Partner
- Table: Pelephone
- Table: HOT Mobile
- MENA Mobile Content
- Data Networks And Devices Drive Mobile VAS
- OTT Services Increase
- Operators Give Competition A Go
- M-Commerce Takes Off
- Operators Look To Non-Voice Corporate Solutions
- Table: Bezeq Fixed-Line Operating Data, 2005 - 2013
- Table: Bezeq's ADSL Indicators, 2007 - 2013
Industry Trends And Developments
- Table: Israel: Regulatory Bodies And Their Responsibilities
- Table: Key Players - Telecoms Sector
- Table: Revenues Of Selected Operators (US$mn)
- Partner Communications
- Table: Huawei Recent Contract Wins
- Demographic Outlook
- Table: Israel's Population By Age Group, 1990-2020 ('000)
- Table: Israel's Population By Age Group, 1990-2020 (% of total)
- Table: Israel's Key Population Ratios, 1990-2020
- Table: Israel's Rural/Urban Population Split, 1990-2020
- Table: Glossary Of Terms
- Industry Forecast Methodology
- Risk/Reward Ratings Methodology
- Table: Risk/Reward Ratings Indicators
- Table: Weighting Of Indicators
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