Report Predicts Israel's Telecom Market Will Reach 3 Million in 2005 - TheStreet

A report by

International Data Corporation Israel

predicts that the wireless Internet sector will reach 3 million users in 2005.

The report was written by the Israeli branch of the leading market-research company, which specializes in computerization, software and communications. It has 43 branches worldwide and 550 researchers.

The survey, called Israel Telecom Network Services Market 2000 to 2005, reports that Israel currently has 3.8 million cellular subscribers in a population of about 6 million. Most do not use wireless Internet services, which are only provided by

Pele-Phone Communications

and

Partner Communications

(PTNR) - Get Report

.

But by 2005, the report predicts, the Israeli market will have more than 3 million mobile Internet users. It assumes that by 2005, Israel's three cellular carriers, Pele-Phone, Partner and

Cellcom

will switch to third-generation cellular networks supporting wireless Internet services.

The report forecasts that 810,000 homes and businesses will use broadband Internet services. These services will be based on three infrastructures: the copper lines of national phone company

Bezeq

, the cable infrastructure of the local cable companies and wireless communications by not-yet existing companies.

The report predicts that the market will be worth $5.84 billion in 2005, compared with $3.84 billion in 1999. Growth will be generated mainly by data communications sector, which is expected to grow in value from $285 million in 1999 to $1.44 billion in 2005. The market penetration of cellular phone is 63% today and is expected to reach to 82% in 2005.

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