The Israeli Export & International Cooperation Institute The Israeli Export & International Cooperation Institute Israel Telecommunications Industry January

The Israeli Export & International Cooperation Institute


Israel Telecommunications Industry

January 2008

Israel

• Population: 7.2M • Households: 1.97M

• Urban Population: 91.5% • Area - grand total 22,145 sq. km

• Fixed line Telephone Subs – 3.2M • Mobile – 7.18M (104% penetration) • Internet Users: 2.5M (ADSL: 1.5M)


IsraelEconomic Indicators

Criteria200520062007*2008*

GDP (B$)129.8140156170.3

GDP Real Growth rate (%)5.6%5.1%4.8%4.2%

GDP per Capita (PPP, $)26,03027,64029,13030,570

Exports of Goods & Services (B$)57.96367.473.3

Imports of Goods & Services (B$)57.561.66771

Unemployment Rate (%)9%8.3%7.6%7.2%

Inflation Rate2.4%-0.1%1.9%1.8

Current Account balance (% of GDP)3.3%4.9%4%3.9%

* Source: Economist Intelligence Unit


0

10

20

30

40Industrial Export (Billions $)

2006 Export - Main Players

7%45%

48% Hi-Tech. 20% growth

Mid-Tech. 11% growth

Low-Tech. 7% growth

2005. $26B. 8% Growth!

2004. $24B. 22% Growth!

Export-Driven economy

Israel Exportas % of GDP

2006. $29B. 15% Growth!

31%35% 38%

45%

9520

00 01 02 03 04 05 06


Export Overview 2006

North America33%

Africa3%

South America4%

Asia & Far East15%

East Europe7%

West Europe (EU)33%


Goods & Services Export Development (including diamonds , B $)

43.5

19.5

1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

goods services 58

63


In every computer

Hi-Tec • Intel, Motorola, SAP, HP, Microsoft, Dell, Cisco, GE,

Applied Materials, Oracle and many more established

major development centers in Israel

– Every 2nd computer worldwide uses MMX, Dothan or other

Israeli developed Intel’s processors.

– More than 400 Million registered uses AOL ICQ software,

developed and patented by Israeli Mirabilis

• More companies that originated in Israel are listed on

NASDAQ than from any other country in the world

iDid you know?

Intel’s Centrino chip A new-generation laptop chip. Was developed in Intels’ branch in Southern IsraelIsrael is ranked no.1in R&D investments worldwide

>>


they bite the bits

• Security, IP and Internet technologies, Electronics,

Bio and Medical devices, Telecom, Satellites and many more

• Israel ranked 3rd in the world in entrepreneurship start ups

and 2nd in quality of university education

• In 2006, Israel ranked 2nd in capital raised by hi-tech companies

• Israel has the highest Venture $/GDP rate in the world,

( seven times the US rate)

• Five Israeli companies won Frost and Sullivan 2006 emerging

technologies awards (12/2006)

Start Ups

iDid you know?

Disk On KeySince 1989, the pioneer and patented of the personal storage solutions revolution, using USB devices with a

proprietary flash memory developments

>>iDid you know?


Be connected

•300 companies exporting Fiber-optic ･ Intelligent Cabling Solutions ･Access (XDSL, IAD) ･ Home Networks ･ Storage Area Networks ･ IP networks (voice,

video, data, multimedia) ･Wireless Local Loop ･ Routers, Load Balancing ･ VPNs,

Firewalls ･ 3G Applications ･ Video Compression, Video Conferencing and Video

Networks

•Start-UpsOver 300 in 2007 and growing

Telecom

>> Alvarion Ltd.™ With over 2 million units deployed in 150 countries, Alvarion Is the worldwide leader in wireless broadband providing systems to carriers, ISPs and private network

operators .

iDid you know?

>>ComverseOne of the leading providers of mobile and wireless telephony worldwide. From billing systems to advanced rich-media platforms, Comverse supplies the largest corporations in the world: AT&T, Verizon, Vodafone, Deutche Telecom and many more


Telecommunications Equipment

Telecom Fiberoptic & Photonic Systems SDH, SONET Access – XDSL, IAD ATM, Frame Relay IP Networks – Voice, Video, Data, Multimedia Routers, Load balancing Test Equipment, Quality Monitoring of Networks 3G Applications Home Networks Storage Area Networks Wireless Local Loop, Microwave VPN, Firewalls Video-Compression, Video-Conferencing & Video Networks


Israel’s Telecommunications Industry - Excellence Areas

• Triple-Play technologies• Digital communications

(access, mobile, wireless, cable TV)

• Access networks• Broadband & optical

technology• Satellite communications

• IT / Network security & VPNs• Value Added Services (mobile,

IPTV)• Home networking• Billing• Network management• Communications chip design

The Israeli Export & International Cooperation InstituteAccess Access


Metro & Backbone


Cellular Core Network


Value Added Services

The Israeli Export & International Cooperation Institute Operating Support Systems


Asked how come he chose Israel as his first investment outside America, Buffett's response was:

"Some Americans came looking for oil, so they didn't stop in Israel. We came looking for brains, so we did stop in

Israel".


CRAIG BART: former Intel CEO ( visiting Israel )

“… Globally speaking, Israel is in 3rd place in terms of IP and is a very good place for opening businesses. The level of education in Israel has helped us expand. Israel’s ability to supply very good scientists has helped us, and the government’s positive attitude has helped us attract investments.”


Bill Gates, the Microsoft CEOmade his first trek to Israel

““Considering the Considering the density of Israeli density of Israeli start-ups and start-ups and local successes, local successes, Israel is like a bit Israel is like a bit of Silicon of Silicon Valley.” Valley.”

““It’s no It’s no exaggeration to exaggeration to say that the kind of say that the kind of innovation going innovation going on in Israel is on in Israel is critical to the critical to the future of the future of the technology technology business…” business…”


Why Are Israel’s Solutions Appealing?

• Very advanced, high quality solutions - at the forefront of technology

• Strong establishment and presence in main markets

• Long term and reliable business relations• Flexibility and creativity in adopting

solution to customers’ requirements• Competitive pricing• Numerous technological breakthroughs

and industry leadership


Foreign Companies Invested in Israel (Some Examples)

US

Microsoft AOL Time Warner Intel IBM Boeing Enterprises Cisco Systems GE Lucent 3Com Hewlett Packard Merrill Lynch Motorola Sun Microsystems Applied Materials KLA Kulicke & Soffa

Europe Asia

Samsung Electronics Daewoo Nomura Hutchison Telecomm. LG Group Sony Toyo Ink Hyundai Acer Computers Sumitomo Trading Fuji Honda

British Telecom Sap Philips Alcatel Siemens DaimlerChrysler Volvo Cable & Wireless Deutsche Telekom Telecom Italia Generali L’Oreal Unilever Villmorim Veolia

Lorence Buffet – Iscar

HP - Mercury


Documents

The Israeli Export & International Cooperation Institute The Israeli Export & International Cooperation Institute Israel Telecommunications Industry January