Internet in Israel
Encyclopedia
Broadband Internet in Israel has been available since the late 1990s in theory, but it only became practical to most customers in 2001. By 2008, Israel has become one of the few countries with developed broadband capabilities across two types of infrastructure, reaching over 95% of the population. The actual broadband penetration stands at 77%, ranked 7th in the world. in 2010, Israel was ranked 26th in The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...

's digital economy rankings.

Internet in Israel is provided through the phone and cable infrastructures, by Bezeq
Bezeq
Bezeq, the Israeli company for communications, is a telecommunications provider in Israel.Until the mid-first decade of the 21st century when it was owned by the Israeli government, Bezeq had a monopoly on landline telephony and Internet access infrastructure...

 and Hot
Hot (Israel)
HOT Telecommunication Systems Ltd. is a company that provides cable television, last-mile Internet access, broadband and telecommunication services in Israel. It also provides various data transmission services and network services at different rates, services to the business sector and other...

 respectively. Bezeq provides dial-up and ADSL services, while HOT provides cable Internet
Cable internet
In telecommunications, cable Internet access, often shortened to cable Internet or simply cable, is a form of broadband Internet access that uses the cable television infrastructure. Like digital subscriber line and fiber to the premises services, cable Internet access provides network edge...

 services. Every ADSL or cable Internet user has to pay separately to the infrastructure provider and to the ISP, due to competition law
Competition law
Competition law, known in the United States as antitrust law, is law that promotes or maintains market competition by regulating anti-competitive conduct by companies....

s.

History

In November 1990, the undersea cable EMOS-1, connecting Israel with Turkey, Greece and Italy, was deployed. This was the first Israeli-built undersea cable, and was augmented by CIOS
CIOS (cable system)
CIOS is a submarine telecommunications cable system in the Mediterranean Sea linking Cyprus and Israel.It has landing points in:* Ayia Napa , Cyprus* Nahariya , Israel...

 in April 1994. Since then, other cables have been laid which have provided large capacity links between Israel and abroad.

Until 1997, most domestic Internet traffic was routed either directly between ISPs, or through the Israeli universities' academic network operated by the IUCC
IUCC
IUCC, the Israel InterUniversity Computation Center, implements, operates and maintains the national research and education network of Israel....

. Since 1997, the Israel Internet Association has been responsible for operating the Israeli Internet eXchange (IIX) through which much of the domestic Internet traffic is routed.

Broadband Internet has been available in Israel via ADSL since the late 1990s in theory, but it only became practical to an average residential customer in 2001. This was enabled by a significant upgrade to the Internet infrastructure in 1999, at a cost of over a billion shekels. Since then prices have dropped considerably.

Also in 2001, the Communications Law of 1982 was amended to allow the provision of broadband Internet through the cable infrastructure.

Connection specifications

The typical connection speed has remained at 1.5 Mbit/s (with 150 kbit/s upstream) for the bulk of 2005 and 2006, and rose to 2.5 Mbit/s by 2008. Connections of over 2 Mbit/s (with a 250 kbit/s upload speed) were introduced in the summer of 2005 to the mainstream. As of September 2010, 16% of Internet subscribers received speeds of 10 Mbit/s or higher. As of 2009, 5 Mbit/s speeds or less run over ADSL (G.DMT
ITU G.992.1
In telecommunications, ITU G.992.1 is an ITU standard for ADSL using discrete multitone modulation. G.DMT full-rate ADSL expands the usable bandwidth of existing copper telephone lines, delivering high-speed data communications at rates up to 8 Mbit/s downstream and 1.3 Mbit/s upstream.DMT...

), and 8 Mbps/800 kbit/s or greater speeds—over ADSL2+ or VDSL. Maximum speeds via the cable modem provider's (Hot) connection are 100 Mbit/s down and 2 Mbit/s up over DOCSIS
DOCSIS
Data Over Cable Service Interface Specification is an international telecommunications standard that permits the addition of high-speed data transfer to an existing cable TV system...

 3.0, a service started on October 21, 2009. All ADSL services require and use the PPPoE
Point-to-Point Protocol over Ethernet
The Point-to-Point Protocol over Ethernet is a network protocol for encapsulating Point-to-Point Protocol frames inside Ethernet frames. It is used mainly with DSL services where individual users connect to the DSL modem over Ethernet and in plain Metro Ethernet networks...

 or PPPoA
Point-to-Point Protocol over ATM
The Point-to-Point Protocol over ATM is a network protocol for encapsulating PPP frames in AAL5. It is used mainly with DOCSIS and DSL carriers....

 protocols, and cable modem connections generally operate over VPN
Virtual private network
A virtual private network is a network that uses primarily public telecommunication infrastructure, such as the Internet, to provide remote offices or traveling users access to a central organizational network....

s using the PPTP
Point-to-point tunneling protocol
The Point-to-Point Tunneling Protocol is a method for implementing virtual private networks. PPTP uses a control channel over TCP and a GRE tunnel operating to encapsulate PPP packets....

/L2TP protocol (with MPLS
Multiprotocol Label Switching
Multiprotocol Label Switching is a mechanism in high-performance telecommunications networks that directs data from one network node to the next based on short path labels rather than long network addresses, avoiding complex lookups in a routing table. The labels identify virtual links between...

 available upon special request).

The three main mobile phone companies, Pelephone
Pelephone
Pelephone is an Israeli-based telecommunications company, founded in 1986 as a joint venture between Motorola and Tadiran, today owned by Bezeq. It was the first company to offer mobile phone services in Israel. Due to this, the brand-name "Pelephone" became the genericized trademark for mobile...

, Partner (Orange), and Cellcom
Cellcom (Israel)
Cellcom is a major Israeli telecommunications company. Founded in 1994, most of the company's business is centered around wireless service...

, offer HSPDA service, typically 1.8 Mbit/s, over their respective 3g
3G
3G or 3rd generation mobile telecommunications is a generation of standards for mobile phones and mobile telecommunication services fulfilling the International Mobile Telecommunications-2000 specifications by the International Telecommunication Union...

 networks as well.

ISP interconnectivity

Israel is connected to the outside world by the MedNautilus undersea cable, owned by Telecom Italia
Telecom Italia
Telecom Italia is the largest Italian telecommunications company, also active in the media and manufacturing industries. Now a private concern listed on the Borsa Italiana, it was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was...

, which holds a monopoly in the field. National connectivity is provided by the Israel Internet eXchange (IIX), a central meeting point of the Internet Service Providers in Israel.

Internet service providers

Due to competition law
Competition law
Competition law, known in the United States as antitrust law, is law that promotes or maintains market competition by regulating anti-competitive conduct by companies....

s, every DSL or cable Internet user has to pay separately to the infrastructure provider and to the Internet service provider (ISP). Infrastructure is provided by Bezeq
Bezeq
Bezeq, the Israeli company for communications, is a telecommunications provider in Israel.Until the mid-first decade of the 21st century when it was owned by the Israeli government, Bezeq had a monopoly on landline telephony and Internet access infrastructure...

 (via dial-up and ADSL) and Hot
Hot (Israel)
HOT Telecommunication Systems Ltd. is a company that provides cable television, last-mile Internet access, broadband and telecommunication services in Israel. It also provides various data transmission services and network services at different rates, services to the business sector and other...

 (cable Internet). All cellular companies (Pelephone
Pelephone
Pelephone is an Israeli-based telecommunications company, founded in 1986 as a joint venture between Motorola and Tadiran, today owned by Bezeq. It was the first company to offer mobile phone services in Israel. Due to this, the brand-name "Pelephone" became the genericized trademark for mobile...

, Partner, Cellcom
Cellcom (Israel)
Cellcom is a major Israeli telecommunications company. Founded in 1994, most of the company's business is centered around wireless service...

 and Mirs) provide wireless Internet infrastructure, and also serve as Internet service providers.

The three main Internet service providers are 012 Smile, 013 Netvision (including Internet Rimon) and Bezeq International. In 2006, the companies held market shares of 34%, 33% and 30%, respectively, although this number includes international phone calls. In all, as on June 2, 2010, there were 43 companies with ISP licenses given by the Ministry of Communications.

Future plans

Bezeq, the major local exchange carrier
Local exchange carrier
Local Exchange Carrier is a regulatory term in telecommunications for the local telephone company.In the United States, wireline telephone companies are divided into two large categories: long distance and local...

, began rolling out their Next Generation Network (NGN) in 2009 with theoretical speeds up to 200 Mbit/s by using a combination of fiber to the curb (FTTC) and ADSL2+/VDSL/VDSL2 technologies. Initial product offerings of their NGN were 10 Mbit/s and 15 Mbit/s download and 800 kbit/s upload speeds over ADSL2+, with a best effort
Best effort delivery
Best effort delivery describes a network service in which the network does not provide any guarantees that data is delivered or that a user is given a guaranteed quality of service level or a certain priority...

 package of up to 100 Mbit/s available starting October 2010. According to Bezeq, NGN is slated to reach 90% of the homes in Israel by late 2011 and offerings of 200 Mbit/s will be provided in 2012.

Its main cable competitor, HOT, is building DOCSIS 3.0 infrastructure which will potentially allow similar bandwidths. A fiber to the home (FTTH) pilot was conducted in Kiryat Shmona
Kiryat Shmona
Kiryat Shmona is a city located in the North District of Israel on the western slopes of the Hula Valley on the Lebanese border. The city was named for the eight people, including Joseph Trumpeldor, who died in 1920 defending Tel Hai....

 in 2010 by the Israel Electric Corporation
Israel Electric Corporation
Israel Electric Corporation is the main supplier of electrical power in Israel.IEC builds, maintains and operates power generation stations, sub-stations, as well as the transmission and distribution networks....

, which is slated to build an FTTH network in Israel. On March 6, 2011 the communications ministry approved founding a subsidiary of IEC for that purpose.

The country's international connectivity is planned to be augmented by a second undersea cable that will compete with MedNautilus (businessman Dadi Borovich previous showed interested in such an investment). A similar plan by businessman Poju Zabludowicz
Poju Zabludowicz
Chaim "Poju" Zabludowicz , owner of the Liechtenstein-registered Tamares investment group, is a Finnish Jewish businessman based in London...

 was approved in February 2011. In the wireless market, a WiMax
WiMAX
WiMAX is a communication technology for wirelessly delivering high-speed Internet service to large geographical areas. The 2005 WiMAX revision provided bit rates up to 40 Mbit/s with the 2011 update up to 1 Gbit/s for fixed stations...

 is planned across the country, with the first pilot conducted in Sderot
Sderot
Sderot is a western Negev city in the Southern District of Israel. According to the Israel Central Bureau of Statistics , at the end of 2009 the city had a total population of 20,700. The city has been an ongoing target of Qassam rocket attacks from the Gaza Strip...

 in 2007. Partner Communications will deploy the first 4G
4G
In telecommunications, 4G is the fourth generation of cellular wireless standards. It is a successor to the 3G and 2G families of standards. In 2009, the ITU-R organization specified the IMT-Advanced requirements for 4G standards, setting peak speed requirements for 4G service at 100 Mbit/s...

 network in Israel, with the help of Ericsson
Ericsson
Ericsson , one of Sweden's largest companies, is a provider of telecommunication and data communication systems, and related services, covering a range of technologies, including especially mobile networks...

, at a cost of about $100 mln.

ISPs


Other

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