As the Israeli telecom market is more mature than other AME countries, growth will rely heavily on a combination of new services and new networks rather than on increasing penetration as growth slightly increases from $6.9 billion in 2010 to $7.1 billion in 2015, according to a new report from Pyramid Research.

According to Kerem Arsal, Analyst at Pyramid Research, over the next five years, the majority of growth in the Israeli telecom market will arise from fixed and mobile broadband, VoIP, and pay-TV. 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. Differentiation through discounted bundles and value-added services becomes vital.

Arsal indicates that 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. As data usage gains increased importance and the IP-based networks roll out, the opportunities for convergence will be rich.

He added that recent announcements for upcoming 4G and LTE networks will provide numerous opportunities (expecting LTE subscriptions to reach around 12% in 2015). In Israel’s highly competitive market, vendors will also find lucrative opportunities to help operators who are currently considering and/or delivering attractive content, particularly multiplay offerings. New and soon-to-be-licensed MVNOs provide further opportunities to virtual network enablers. Finally, when the MoC issues mobile WiMax licenses, vendors can look forward to new WiMax rollouts.