The telecom market in Israel generated $6.9bn in 2010 and is estimated to reach $7.1bn by 2015, according to a new report from Pyramid Research.
The report said the Israel telecom market is more mature than other AME countries, and its growth will rely on a combination of new services and new networks rather than on increasing penetration rate.
The report Israel: 4G and Multiplay to Drive Growth in a Mature Telecom Market said that in the next five years, the majority of growth in the Israeli telecom market will arise from fixed and mobile broadband, VoIP, and pay-TV.
Pyramid Research analyst Kerem Arsal said as the ability to offer multiplay services becomes more important in the Israeli market, differentiation through discounted bundles and value-added services becomes vital.
"With 85% of households having fixed broadband access and the proliferation of 3G networks by all mobile players, the market is ripe with opportunities for convergence and multiplay offers," Arsal said.