The

1
Israel Telecommunications IndustryJanuary
2008
The Israeli Export International Cooperation
Institute
2
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)
SIZE
3
IsraelEconomic Indicators
Source Economist Intelligence Unit
4
Export-Driven economy
Israel Exportas of GDP
2006. 29B. 15 Growth!
Industrial Export (Billions )
2005. 26B. 8 Growth!
2004. 24B. 22 Growth!
2006 Export - Main Players
Hi-Tech. 20 growth
Mid-Tech. 11 growth
Low-Tech. 7 growth
5
Export Overview 2006
West Europe (EU) 33
North America 33
East Europe 7
Asia Far East 15
Africa 3
South America 4
6
Industrial Export Development (Excluding
diamonds , B )
7
Goods Services Export Development (including
diamonds , B )
8
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 Intels 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

9
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
i
Did you know?
10
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
11
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

12
Israels Telecommunications Industry -
Excellence Areas

• IT / Network security VPNs
• Value Added Services (mobile, IPTV)
• Home networking
• Billing
• Network management
• Communications chip design

• Triple-Play technologies
• Digital communications (access, mobile, wireless,
  cable TV)
• Access networks
• Broadband optical technology
• Satellite communications

13
Access
Access
14
Metro Backbone
15
Cellular Core Network
16
Value Added Services
17
Operating Support Systems
18
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."
19
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. Israels ability to supply very
good scientists has helped us, and the
governments positive attitude has helped us
attract investments.
20
Bill Gates, the Microsoft CEOmade his first trek
to Israel
Its no exaggeration to say that the kind of
innovation going on in Israel is critical to the
future of the technology business
Considering the density of Israeli start-ups and
local successes, Israel is like a bit of Silicon
Valley.
21
Why Are Israels 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

22
Foreign Companies Invested in Israel (Some
Examples)

• US

• Europe

• Asia

• 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

• 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
• LOreal
• Unilever
• Villmorim
• Veolia

• Lorence Buffet Iscar
• HP - Mercury

23
(No Transcript)