1 / 41

Telecommunications Industry in Israel august 2002

Telecommunications Industry in Israel august 2002. Ministry of Communications. Presentation Agenda. Israel Demographics & ICT Statistics Telecommunications Industry Telecommunications Market Overview. Israel Demographics & ICT Statistics. ISRAEL Demographics. Population ~ 6.5 million.

kasie
Télécharger la présentation

Telecommunications Industry in Israel august 2002

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TelecommunicationsIndustry in Israel august 2002 Ministry of Communications

  2. Presentation Agenda • Israel Demographics & ICT Statistics • Telecommunications Industry • Telecommunications Market Overview

  3. Israel Demographics&ICT Statistics

  4. ISRAEL Demographics • Population ~ 6.5 million. • Households ~ 1.8 million. • Average family ~ 3.6 persons.

  5. Israel’s ICT Sector - 2000(Information & Communications Technology) • Israeli ICT GDP grew from NIS 8.7 billion in 1990 to NIS 39 billion in 2000, 20% of business sector GDP. • ICT GDP is 14.3% of total GDP. OECD highest - compared to 10-11% in US. • Investment in ICT research and development is 23% of the ICT GDP. OECD highest - compared to 16-17% in Finland. • 148,000 employees. Source: CBS, 2001

  6. Israel's Telecommunications • 3.2 million main telephone lines (50% penetration, more than 95% of households) • 5.5 million mobile customers, on 4 networks (85% penetration) • 1.5 million households connected to multi-channel subscriber television • Cable TV: 3 operators, 1.2 million subscribers, 70% of homes passed, 95% household coverage. • Satellite DTH TV: 1 operator, 0.3 million subscribers

  7. Telecommunications Industry

  8. Israel's Electronics IndustriesSource: IAEI, 2002 • Combined 2001 sales - $14.25 billion, of which $11.75 billion were exports sales. • Highly skilled workforce - 62,000 employees, including over 63% scientists, engineers & technicians. • Sales per employee - over $230,000.

  9. Total 2001 Sales – $14.25 billionSource: IAEI, 2002 Software 21% Telecommunications 29.6% Defense Systems 15% Industrial & Medical Systems 17.7% Components 16.7%

  10. Leading Israeli Telecommunications & Electronics Companies CompanySales 2001Line of Business (US$M) Intel Electronics (Israel) 1614 Semiconductors Motorola Israel 1278 Communications & Semiconductors Vishay Israel 1182 Electronics & Electricity E C I 1170 Telecommunications Comverce 710 Telecommunications & Electronics Gilat Satellite Networks 505 Satellites Communications Telrad 470 Telecommunications Check Point 425 Software Formula 406 Software R A D 190 Telecommunications & Electronics

  11. Industry Excellence Areas • Telecommunications – networking & network management, billing, Internet, video & image processing, wireless, satellite communications, access networks, broadband & photonics, network security & VPN’s, messaging, home networking. • Computerized production equipment & imaging. • Software. • Semiconductors & photonic components. • Defense systems – missiles, anti-missiles & guided weapons, opto-electronics, radars, C4I, EW (Electronic Warfare), simulation, training.

  12. Statistical HighlightsSource: IAEI, 2002 Electronics All Other Industries Industries Exports [% of total sales] 82 25 Added value [%] 68 42 Scientist, engineers & technicians [%] 63 14 Employees in R&D [%] 12 2

  13. Major R&D EffortsStretching Boundaries of Imagination & Ingenuity • Innovative synergistic industry-academy cooperation, supported by the Chief Scientist, Ministry of Industry & Trade. • Over 100 industrial & academic participants. • Focused on establishment of the technological infrastructure for the next generation. • Key telecommunications R&D activities: • Digital wireless • Satellite systems • Broadband & optical technology • Internet & Multimedia • Telemedicine • Microelectronics • Network management

  14. Technology Start-ups • Israel is one of the largest world centers for start-up enterprises, with ~2000 active start-ups. • Innovative, technology-intensive activity, representing several technology breakthroughs. • Major international activity: • Strategic alliances and joint ventures. • Raising capital - venture, seed & risk investments.

  15. Venture CapitalSource: IVC Research Center (TheMarker, 27 January 2002) • Investments by venture capital funds constitute an added value above financial contributions - in management, world market familiarity, strategic guidance and economic credibility. • During 2001, 526 Israeli companies raised $2.0 billion (compared to 513 companies & $3.1 billion during 2000). • 40% ($812 million) was invested by Israeli venture capital funds. • The active sectors are communications (42%), software (20%), life sciences (14%) & Internet (9%).

  16. Telecom Israel 2002 Exhibition and Conference:The Future is Here Tel-Aviv, 4-7 November, 2002 For more informationTelecom Israel 2002:http://www.telecom2002.co.il

  17. Telecom-Israel 2002 EventTel-Aviv, 4-7 November, 2002 • Important international exhibition & conference: • Exhibition: 4-7 November 2002 • Conference: 5-7 November 2002 • A showcase of hottest technologies and applications. • The place to see how new technologies, products, services and issues are reshaping the world of communications. • The future is here - Wherever you look, across the globe, Israel’s born products stand up. • We invite you to witness for yourself!

  18. Telecom Israel 2002 Conference Program (preliminary) Tuesday, 5 Nov. Wednesday, 6 Nov. Thursday, 7 Nov. Telecom, IT & Media at the Crossroad: Challenges and Opportunities After the Hype - Sober View of the IT, Telecoms and Media Industries Information is Power Civilian & Military Information Security at the Turn of the Century BB and 3G - is the Future Bright? The Drivers for Successful Broadband Fixed and Mobile Implementation The New Mobile World - Will Mobile Operators Make the Change From Voice to Multimedia? Network Infrastructure in a Competitive World - All Optical Core Telecom and Content Regulation - Critical Must or Unnecessary Burden? Delivering Business Services - The New Generation Application Service Provider Broadband Fixed & Mobile Access Networks - Will the Bottleneck Open? Government & Business Collaboration - Government Incentives and Business Motivation Support for Technology Development Intelligent Buildings and Home Networking - Towards Networked Home? Interactive Entertainment - Is There More than Sex, Shopping and Games? Network Infrastructure in a Competitive World - Next Generation Network: All IP Switching and Service Delivery The Future of Fixed Services Competition - Is There Opportunity for CLEC’s? Service and Network Security in an Open Broadband World Consumer and Business Applications - The Future of B2C Retailing and B2B Trading New Horizons for Internet Technology - What is the Next Big Thing? Israel Telecommunications Market - Will the Growth Continue? Managing Customer Relationship - Adding Value Through Customer Management Startups and Venture Capital - Investments in the Future of Israel’s Technology Fixed Mobile Convergence - Bundling or Bumbling?

  19. Telecommunications Market Overview

  20. Telecommunications Services Market - 2001 Cable TV International Long-Distance Internet services Terminal Equipment & Business Systems 4% 2% 7% 9% Mobile Services 52% Fixed Services 26% Total telecom services market ~ US $5 billion

  21. Internet Users Across The World 2001 Country average (31%) Percentage of total adult population Percentage of the population who have personally used the Internet during the past month Source: Tayler Nelson Sofres Interactive – Global eCommerce Report 2001

  22. Broad Band • 100,000 ADSL lines, 15,000 Cable modems. • Competition launched January 2002. • Subscribers growth ~175% in the last 8 month. • Households penetration ~6%.

  23. Regulatory Policy • Public interest - the main issue • Competition - the key for innovation, entrepreneurship, investment & growth. • Key action areas: • Liberalization. • Re-regulation. • Privatization.

  24. Regulation Ideology • Free and competitive markets promote growth, efficiency, customer satisfaction & economic advantage. • Market restructuring, in transition from monopoly to open and free market, during a short time period, requires active and balanced regulatory intervention. • Once competitive marketplace is achieved, a strong regulator will provide unnecessary intervention, and should be abolished.

  25. From Monopoly to Competition 1994 2000 2002 + • Pelephone • Cellcom • Partner • MIRS • Pelephone • Cellcom • Partner • Pelephone (Bezeq) Mobile Services • Bezeq • Cable Companies • Others: • Wireline • Wireless Fixed Services (Infrastructure, Transmission & Telephony) • Bezeq • Bezeq • Bezeq-International • Barak • Golden-Lines • Additional operators International Long Distance Services • Bezeq-International • Barak • Golden-Lines • Bezeq

  26. Fixed servicesDriven by Broadband DemandActual competition started Q2 2002

  27. yes Direct Broadcasting Satellite (44.9%) Bezeq Call Communications CPE & Business Solutions (100%) Bezeq Consortium Bezeq Online Call Center (100%) Walla! Communications Portal & web hosting (36.7% by BI) Bezeq International ILD & Internet (100%) Pelephone Mobile Services (50%) Bezeq Fixed Services & Infrastructure (Holding Company)

  28. Bidding for Majority Stake in Bezeq • Israel’s incumbent telecommunications operator. • annual sales ~2 billion US $. • 11,000 employees (8,500 in Bezeq, The parent company). • Government holds 54.6% of Bezeq shares (remaining shares - publicly held). • Government issued a formal tender, for private sale of 50.01% of the share capital of Bezeq. • Six groups filed applications at 13 February 2002. • The process is planned to be completed in 6 months.

  29. Incumbent main services & technologies • 100% digital exchanges & transmission (mainly SDH). • Interconnection with mobile & ILD operators. • ISDN & ADSL Access. • Data Network – TDM, F.R, ATM, 64Kb/s – 622Mb/s.

  30. Cable TV firms - the new entrants • Fully digitized HFC networks (750MHz). • Cable Modem broadband Internet services (64Kb/s – 2Mb/s). • Interactive TV • T- mail, T- commerce. • Future plans – IP telephony and data services over cable.

  31. Mobile ServicesCompetition Introduced December 1994

  32. Mobile Operators

  33. Mobile Technologies: key trends • New services: • SMS (interoperable), WAP, SHTML wireless internet. • Content: news, media & data services. • Location based services. • M(obile) – Commerce (vending machines, parking, gas station,etc).

  34. 2G/3G Mobile License Auctions • MSR (Multiple Simultaneous Round) combined auction. • Frequency packages: • 4 Bands: 2G FDD, 2x10 MHz. • 4 Bands: 3G FDD, 2x10 MHz. 3G TDD: 5 MHz (for 3 packages only). • Reserve price: 2G: US $45M. 3G: US$55M. • Tender published: 28 March 2001. • 18 December 2001 auction produced NIS 1,026 million.

  35. Why Will 3G Succeed in Israel? • Israel is well suited for 3G: • Relatively wealthy country (~$20K GDP/cap). • Technology literate. • High mobile penetration, extremely high usage. • Favorable auction price - $42/pop Germany $544, UK $537, France $287, Italy $211, Ireland $211, Austria $91, Denmark $80. • Light rollout requirements: • Operators do not have to launch services unless they are sure they will succeed. • Each service country-wide availability - 24mo after initial commercialization.

  36. International Long DistanceservicesFacilities Based Competition Introduced July 19971 state – owned, 2 privately – owned service providers

  37. Submarine Optical Cables Infrastructure EMOS CIOS Cable RFCS Capacity EMOS 1990 280 Mb/s CIOS 1994 622 Mb/s LEV 1998 5 Gb/s MN1 2001 3.84 Tb/s LEV MED Nautilus 1

  38. The Israel Internet-2 Network • Part of the global research network for the NGI (Next Generation Internet). • Connecting Israel to the forefront of scientific and industrial R&D, through: • StarTap - US NSF/I-2/NGI interconnection point. • Géant – The pan-European Gigabit research network. • 45 Mb/s connection to Géant (London), 45 Mb/s connection to StarTap (Chicago). • 10 Mb/s & 155 Mb/s IP, ATM & SDH domestic connectivity. • http://www.internet-2.org.il

  39. Civilian Telecommunications Satellites • AMOS-1: TV distribution, SNG & VSAT • launched May 1996. • Geostationary orbit at 4o West. • 7 transponders, covering Middle East & Central Europe. • Designed, manufactured and controlled by Israel Aircraft Industries. • Gurwin-II TechSAT: communications, remote sensing & research • Launched July 1998. • 830 km altitude sun-synchronous circular orbit. • 50 kg, 3-axis stabilized Earth-pointing microsat. • Designed, manufactured and controlled by the Technion - Israel Institute of Technology.

  40. Amos 2 Satellite • Launch Planned for Q2 2003. • Geostationary orbit at 4o West (co-located with AMOS 1). • 11 active transponders & 3 backup transponders, 72 MHz bandwidth each. • High power - planned for DTH TV distribution, two-way Internet services and broadband VSAT networks. • 3 spot beams: • Middle East - supporting up to 11 transponders. • Europe - supporting up to 6 transponders. • US East coast - supporting up to 8 transponders. • Designed, manufactured and controlled by Israel Aircraft Industries. • Owned & operated by Spacecom Ltd.

  41. The End Thank you for your attention For more information http:/www.moc.gov.il

More Related