Internet penetration is growing quickly. Five
major and about 70 smaller Internet service
providers serve more than three million users,
including above 60% of households and above 80%
of businesses. Cellular phone companies
introduced wireless Internet during 2001. Bezeq
began to offer ADSL services in 2000, and the
cable companies started to provide broadband
cable modem access in March 2002. As a result
of the competition, the penetration rate of
broadband to households has grown from 4% in
2002 to 62% in June 2006. Fixed broadband
service in Israel (by Cable Modem or ADSL) has a
home-pass of 99%. The tariffs of broadband
Internet have decreased in dozens of percentages.
The cable companies and Bezeq are obligated to
provide universal deployment of broadband
Internet access service. Broadband penetration
rates are quite promising: 800,000 ADSL
subscribers and 430,000 cable modem subscribers,
as of December 2005, translate to a penetration
rate of 58% per households in 2005 and 18% per
inhabitants, placing Israel among the leading
countries in the world in terms of broadband
penetration.
Factors encouraging this growth
include the competition between Bezeq and the
cables companies (both are under universal
service obligation), competition between five
major ISP's widespread use of computer in
business and at home, advanced telecommunications
infrastructure and a regulatory policy of minimal
intervention. Several sophisticated
Hebrew-language portals and more than 60,000 web
pages also contribute to ubiquitous Internet use
in Israel.
Israel is a world leader in
developing Internet technologies and
applications, and Israeli companies operating in
the field have marked several international
successes. This international reputation is also
recognized on the home market, and influences
local interest and use.
The country's strong
tradition of academic inquiry and research has
placed Israel on the global research network for
the NGI (Next Generation Internet), linking
Israel to the world's seekers of scientific and
industrial knowledge through StarTap (Chicago) to
the U.S.Internet 2 Network, through the Point of
Presence (London) to the EU GEANT Network and to
Q-Med (Mediterranean consortium Quantum
extension).