VoIP Growth in Israel

VoIP is driving market growth in Israel according to a new study by Pyramid Research.

The company found that the Israeli markets would benefit from multiplay and and 4G services over the next five years as opposed to increased penetration rates. The wide availability of broadband is also a driving factor.

The sector is currently worth $6.9 billion US dollars but is forecast to increase to $7.1 billion US dollars by 2015.

Kerem Arsal, an analyst at Pyramid Research, said: “As the ability to offer multiplay services becomes more important in the Israeli market, operators look for mergers or partnerships that will allow them to expand their product ranges. Therefore differentiation through discounted bundles and value-added services becomes vital."
He added: “With 85 per cent 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."
The report predicts increased opportunities for convergence once IP-based 4G and LTE networks roll out and data usage gains importance. Pyramid Research predicts LTE network subscriptions will increase to 12 per cent by 2015.

Israel has a highly competitive VoIP market both for vendors and operators. That is why multiplay offerings are particularly popular. Meanwhile impending licenses for MVNOs and WiMAX will provide further opportunities to virtual network enablers. Much depends on the Ministry of Communication timetable.

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