SUMMARY

ISRAEL COMMUNICATION INDUSTRY

The Communication industry of Israel is very well developed. Though being a very small country in terms of area and population the communication sector of Israel can challenge any country. Israeli companies have traditionally been at the forefront of the global IT and communications industry. Over 65 years of innovation in civilian and military applications have resulted in the rising of a number of world-renowned Internets, information technology and communications hub in Israel, beside with hundreds of smaller tech companies and over thousand active Israeli communications start-ups.

Growth of the industry

In the last decade, Israel has become a leading supplier for the global telecommunications industry. Generating cutting-edge, innovative technologies, Israeli communications companies persist to attract top institutional investors, raising a tremendous $100 million from venture capitalists in 2005.

In 2011, the Internet sector paying attention the largest shares of investments for the first time in the last decade, 120 Internet companies raised $482 million or 25% of total capital raised by high-tech companies, compared to $222 million or 18% of total capital raised in 2010 and $147 million or 13% raised in 2009. (IVC)

The communications sector followed with $432 million (20%) an increase of 82% from $238 million (19%) in 2010. (IVC)

Third largest was the software sector with 95 companies raising $415 million (19%) compared to just $150 million (12%) in 2010.(IVC)

International software companies export more than $3 billion annually. Communications exports reached $4.1 billion in 2009. (IEI)

In the 2011 Deloitte Technology got Fast 500 EMEA ranking, three Israeli companies Tufin, Webs planet and Kenshoo were in the top 20 companies.

Product and services of the communication sector Communication Equipment Routers, Switches, Networking gear and Optical Components developed in Israel are part of almost every network in the world - from the core of the network to the network edge and even in the home, as part of Consumer-Premise Equipment - with veteran companies like Telrad, ECI and RAD alongside start-ups like Ethos, Axerra, Actelis and many others. Communication Software Communication Software has been a core growth engine for the Israeli industry, with innovation spill over from large companies such as Comverse and Amdocs to a multitude of smaller companies and start-ups Cable, IPTV and Content Delivery With companies like Harmonic, Scopus and Big Band, Israeli technology has dominated cable and IPTV deployments worldwide. IPTV solutions from Bit band, Orca Interactive, NDS and many others have served as building blocks for this nascent market. Recently, startups like Arootz, Imagine, Rayv, Context ream and more have positioned themselves to revolutionize video delivery over the Internet

INTERNET Broadband Internet became widespread in the majority of homes in Israel. Bezeq stopped being domination in the field of the landline communications, when Hot on track offering telephony services through the cables infrastructures. In middle of the decade due to the attractiveness which the hi-speed internet and VoIP Technologies gained amongst the Israelis, at foremost Israelis were able to conduct international conversations without charge or at lower rates through the Internet due to the link connecting VoIP networks such as Skype and Vonage to the long-established telephony networks in Israel and abroad
In 2008, Partner Communications Company and XFone joined the high-speed Internet providers market. Just as with cell-phones, Israelis per capita own more PCs than any other nationality in the world

Broadcasting In 2000, the Israeli satellite television provider yes was developed. At the time it was recognized, there were still 3 active cable companies running Israel: Tevel, Matav and Arutzay Zahav. The rivalry with Yes caused huge loss of members amongst the cable TV companies which provoke them to fuse. In order to strengthen Yes, which was somewhat new, the regulator delayed his approval to the amalgamation of the cable companies. In 2003, the cable companies initiate act under the brand-name of the Hot. At the start of 2008, the companies completed the merging. In this decade Hot and Yes make possible the use of the digital set-top boxes, and with them it became likely to receive digital broadcasts (improvement in the quality of response of the television channels), and furthermore also active games channels, video on demand (V.O.D) and nowadays they even deliver digital settop boxes which contain advanced DVR technologies which are competent of pre-recording show (Hot Magic, Yes Max). HOT has put a big weight on promoting production of local Israeli movies, but YES puts more prominence on buying foreign TV series and movies. The fight between the two companies is still its intense Under the check up of the Second Israeli Broadcasting Authority, an additional Israeli earthly-commercial channel was established on February 2002 Channel 10. This move initiates a rivalry among the commercial channels. Channel 10 bought for itself hosts and actors from Channel 2 and Channel 1. Notwithstanding these procurement actions, the channel is still measured to be low-quality in the amount of its viewers moderately to the other channels. In 2005, a supplementary bid took place in channel 2, in which "Keshet" and "Reshet" were chosen to be the channel's broadcasts to the resulting decade. Israeli News Company won the proposal to produce the terrestrial Knesset Channel. On March 30, 2010 all analogue terrestrial television towers were switched off and digital distribution (Idan Plus") is the only Digital Terrestrial System in effect. The first phase includes 5 SD channels (IBA-1, IBA-33, Channel 2, Israel 10 and The Knesset Channel). The system is DVB-T / MPEG-4 and in SFN configuration with 2 frequencies across the whole country (north and south are UHF 26 while central is UHF 29). A second phase with further channels is expected in 2012 (also IBA-1 HD) and a third phase maybe in 2013

Mergers & Acquisition Israeli Company Marvell Semiconductor PMC Sierra Micro semi Corp Telefonica O2 UK Ltd Motorola NeuStar AT&T Harmonic Microfocus Oclaro Inc Padtec SA Software AG Viaccess Elbit Systems Ltd RuggedCom Inc Acquirer DSPC (Intel) Passive Power sine Jajah Technologies Ltd Terayon Followap Interwise Scopus Video Netmanage Xtellus Ltd Civcom Ltd Jacada Orca Interactive Shiron Satellite Communications WiNetworks Ltd Deal Size $600M $300M $245M $207M $180M $140M $121M $86M $73.3M $33M $35M $26M $21.4M $16M $14M Date 2006 2006 2006 2009 2007 2006 2007 2008 2008 2009 2008 2007 2008 2009 2009

Key players in communication industry of Israel

Smile International and landline calls supplier, Internet service supplier Net Vision International and landline calls supplier, Internet service supplier Hallo - International supplier Five cellular services universal operator Rami Levi

Bezeq Israel's bequest national communications supplier, which mainly deliver facilities like landline telephone service Bezeq International International and landline calls supplier, Internet service bringer Cellcom Wireless operator (GSM 1800 and UMTS 850/2100) Hot Sole cable television supplier, also provides landline telephone service Israel Postal Company it is a Government-owned company which mainly provides mail and various banking services. Mirs Wireless operator (current network: iDEN. Future networks UMTS 2100) Partner (Orange) Wireless operator (GSM 901/1800 and UMTS 2100). An selfregulating licensee of Orange SA Pelephone Wireless operator (old network: CDMA IS-95/CDMA2000/EV-DO in the 852Mhz band. New network: UMTS 850/2100) Yes Sole DBS television supplier

COMPARISON OF INDUSTRY WITH INDIA

ITEMS Telephone main line in use Mobile phone Internet hosts Internet users Internet country code Radio broadcast stations Televisions Television broadcast stations Broadband subscribers

ISRAEL 3.5 million(2011) 9.2 million( 2011) 2.483 million (2012) 4.525 million (2009) .il AM 23, FM 15, shortwave 2 1.69 million 24 1.3 million

INDIA 32.685 million (2011) 893.862 million (2011) 6.746 million (2012) 61.338 million (2009) .in 153- AM , 91- FM ,shortwave 68 116 million 562 14.31 million

Indias communications Industry The Indian communications industry is developing at a much faster rate as compared to other communication industry of the world. Starting from the last decade Indias telecom sector is growing rapidly as compared to other Asian economies, here growth is a certainty. India is presently the 3rd-largest mobile market in the world in terms of number of mobile subscribers. Indian telecom market generates revenues of just about US$ 20 billion in 2006-

07. However, the industry is about to generate a compound annual growth rate of approximately 26 per cent from 2007-08 to 2010-11 and scale US$ 51 billion by 2011. It is, thus, not astonishing that quite a few foreign companies are deciding to make huge investments in India. Not to be left behind, Indian cellular operators have also planned investments worth US$ 16 billion in 2008-09 to fuel their massive investment plans. The Indian telecommunications industry is able to cross a subscriber base of 235 million; its teledensity is about twenty per cent. The Indian communication market provides telecom service providers with a large intact potential, given the countrys growing population and its low tele-density.

PRODUCTS/SERVICES OF COMMUNICATION INDUSTRY SERVICE PROVIDERS Service Providers are the companies which offer local and long-distance wire line telephone package. Industry insiders call these POTS, for plain old telephone service. Wire line providers consist of the great long distance service supplier like Verizon & Sprint and the RBOCs (the Baby Bells) like BellSouth and SBC Communications. innovative development of companies is laying fiber-optic wire networks to maintain the at a fast pace increasing data passage, including Verizon., Level three, and Qwest. WIRELESS SERVICE PROVIDERS Marked by carrier consolidation and partnering to enhance geographic reach and available at lower rate, wireless communication services have dazed up the telecom industry. Also they have brought telecommunications to the far corners of the earth, together with parts of Africa and South America where there's no active wire line infrastructure, and have made local markets far more aggressive in the United States. CUSTOMER PREMISE EQUIPMENT (CPE) MANUFACTURERS Telecommunication service providers are the principal customers of telecommunications equipment makers. When they sell a service to a company, for instance, they purchase the switch, which can serve anywhere from 20 to 2,00,000 people, as well as other purchaser premise equipment (CPE)-everything from telephones to voice-mail systems to private branch exchanges (PBXs). Local area networks (LAN) require their own, hubs, switches, and routers. The giant players here consist of Lucent Technologies, Nortel, Fujitsu, Siemens, and Alcatel.

INTERNET Internet in India is started with the commence of Internet services by VSNL on the auspicious day on 15th august 1995. In other words the 48th anniversary of the Indian government. The launch was successful as they quickly added upto 10,000 internet users within 6-7 month of the launch. But the next decade was tough for internet experience in India.there was a narrow band connections having speed less than 60 kbits/s (Dial up). The government came up with Broadband policy in 2004 which defined the broadband as an always on internet connection with download speed of 260 kbit/s or above. Then from 2005 onward there was acceleration at the pace of the development of the broadband sector in the country. But still it was much below the expectation of the government and the related companies due to the resources used in last mile access which depended on wired line technologies principally. However this problem was solved in 2010 when the Indian government auctioned the 3G spectrum followed by a high profile auction of 4G spectrum which sets the stage for aggressive and invigorated wireless broadband market. at the present internet access in India is provided by both public and private companies using a variety of technologies and media including DialUp (PSTN), xDSL, Coaxial Cables, Ethernet, HSDPA, ISDN, FTTH, (3G), WiMAX, WiFi, etc. at a wide range of speeds and costs. The country has the world's 3rd largest Internet users with over 120 million users (of whom 59% who only access the internet via mobile devices) as of December 2011. As of December 2011, total Internet connections stood at 22.40 million. With estimated users exceeding 125 million. The number of broadband users as of July 2012 is 15 million. Cumulative Annual Growth rate (CAGR) of the broadband during the 5 year period between 2005 and 2010 was about 120 per cent. Among the technologies, DSL, whilst holding to some extent more than 75% of the local broadband market, was little by little losing market share to other non-DSL broadband platforms, particularly to wireless broadband platforms. There are 150 Internet Service Providers (ISPs) as of January 2012, which tender broadband services in India. Public sector companies MTNL and BSNL dominates the market with a share of 64.8 and 8 percent respectively while from the private sector Bharti leads with a share of 11 per cent. Cyber Cafe remains as the most vital source of internet access. In 2009, about 42 per cent of the users access from Cyber cafe, 30 per cent from office and 23 per cent from home. However, the sum of mobile internet users found acceleration from 2009 onward and there were about 275 million such users at the end of September 2010, though greater

part belonged to 2G mobile networks. According to TRAI Mobile internet subscriptions Indias in Mar 2011 increased to 385 million. One of the major issue, the internet segment facing is the lower average bandwidth of broadband connections compared to that of urbanized countries. According to 2007 statistics, the average download speed in India hovered at about 256 kbit/s, the minimum speed set by TRAI, whereas the international average was 5.8 Mbit/s during the same period. In order to attend such kind of infrastructure matter the government acknowledged 2007 as "the year of broadband". To contend with international principles of defining broadband speed the Indian Government has taken hostile step of proposing the $14 billion national broadband network to connect all cities, towns and villages with a population of more than 500 in two phases targeted for completion by 2012 and 2013. The network is probable to handle speed up to 10 Mbit/s in 63 metropolitan areas and 4 Mbit/s in additional 353 cities. Also, the Internet penetration in India is one of the lowest in the world and only accounts for 8.4% of the population compared to OECD counties, where middling penetration rate is over 50%. Another issue reported from this sector is the digital divide of the development story biased in favour of urban areas; according to 2010 statistics, more than 75 per cent of the broadband connections in the country are in top 30 cities. Regulators have tried to boost up the growth of broadband in rural areas by promoting higher investment in rural infrastructure and subsidized tariff for rural subscribers under Universal service obligation scheme of the Indian government Broadcasting Broadcasting on television began in India in the year 1959 by Doordarshan, a medium which was run by state, it had slow extension and it had slow extension for more than 2 decades. Then in 1990s there was a change in policy and it transformed the business by attracting private initiatives in this sector. Since then there has been no looking back. Satellite television has increasingly shaped popular culture and Indian society. Till today only government owned Doordarshan has the license for earthly television broadcast. The medium used by private companies to reach the public is via cable television and DTH. Also DTH has obtained an extensive subscriber base in India. The numbers shows that in 2012, India has about 150 million TV sets at home of which 126 million has access to cable and satellite services.

Following the economic reforms in 1991s, satellite television channels from around the worldCNBC, CNN, BBC and other private television channels gained traction in the country. There is not any regulation to control the ownership of satellite dish antennas and also for operating cable television systems in India, which in turn has helped for an astonishing increase in the viewership. The augmentation in the quantity of satellite channels was triggered by corporate business houses such as Zee TV and Star TV group. Initially restricted to music and entertainment channels, viewership grew, giving rise to several channels in regional languages, especially Hindi. The main news channels available were CNN and BBC World. In the late 1990s, many current affairs and news channels sprouted, becoming vastly popular because of the different viewpoint they accessible compared to Doordarshan. Some of the extraordinary ones are Aaj Tak (run by the India Today group) and STAR News, CNN-IBN, Times Now, originally run by the NDTV group and their lead anchor, Prannoy Roy (NDTV now has its own channels, , NDTV Profit NDTV India and NDTV 24x7). Over the years, Doordarshan services also have full-grown from a single national channel to six national and eleven regional channels. Nonetheless, it has gone astray the leadership in market, though it underwent many phases of reconstruction in order to contain tough competition from private channels. Today, television is the on the whole penetrative media in India with industry estimates indicating that there are over 553 million TV consumers, 465 million with satellite connections, compared to other forms of mass media such as radio or internet. Government of India has used the popularity of TV and radio among rural people for the implementation of many social-programmes together with that of mass-education. On 15 November 2006, the Government of India launched the community radio policy which authorized agricultural centres, educational institutions and civil society organisations to apply for community based FM broadcasting permit. Community Radio is allowed 100 Watt Effective Radiated Power (ERP) with a maximum tower height of 30 meters. The license is valid for 5 years and one organization can only get one permit, which is non-transferable and to be used for community development purposes. 1.10 Major Communication Companies in India

In 1975, the Department of Telecom (DoT) was given separate power for running the telephone services in the country.

 The Mahanagar Telephone Nigam Limited (MTNL) initiated its services in the year 1985 for carrying out the telephone operations in the metros of India like Delhi and Mumbai. In November 2000, the Bharat Sanchar Nigam Limited (BSNL) was set up by the Department of Telecom. subsequently numerous private companies as Reliance Communications, Tata Indicom, Airtel etc in the sector came up. BSNL The Bharat Sanchar Nigam Limited, countrys biggest cellular service operator was set up in the year 2000. It is a state owned telecom company with its headquarters located in New Delhi. BSNL is also the principal land line telephone establishment in India. As of march, 2011 86.1 million customer have been reported to be BSNL users. MTNL Mahanagar Telephone Nigam Limited (MTNL) was set up in the year 1985, to operate telecom operations in the key metro cities of India, Mumbai and Delhi. Company have headquarters are based in Mumbai. MTNL was the foremost company in India to initiate 3G services in India, having the brand name of MTNL 3G Jadoo Services which provided options as Video calling, Mobile TV, Mobile Broadband and so forth to the customers.

Airtel Also well-known as Bharti Airtel limited was started in July 1995, with its head office in New Delhi. Airtel conducts its operations in as many as 20 countries across the world and is also ranked 5th as telecom service provider globally. As of April 2012, figures show that Airtel has over 164.61 million users which make it the principal mobile service operator in India. Its service includes both 2G and 3G facilities. Reliance Communications Also famous as RCOM was set up in 2004, with its headquartered in Navi Mumbai. Reliance Communications as of at the present has more than 140 million users all across the globe. Aircel Aircel was existed in 1999, with its head office in New Delhi. It is collaboration of Maxis Communications and the Apollo Hospitals. Vodafone Essar Vodafone Essar was founded in 1994 with its head office at Mumbai. Vodafone provides services to 24 telecom circles across India.

Tata Indicom The Tata Teleservices was initiated in 1996.it has head quarters in Navi Mumbai. Idea Cellular Idea Cellular was started in 1995, with its head office in Mumbai. It also provides 3G services to its customers. Virgin Mobile Virgin Mobile initiated its services in India in 2008, March. It is a United Kingdom based company. Uninor This Company is collaboration between Telenor Group and Unitech Group and was initiated in 2009. Comparison of companies:

In million US $
Particulars current assets long-term assets: Allot communications 198,241 541 207,689 32,961 Bharti Airtel 2,714.4 1,410.8 28,789.4 8,961.0

total assets current liabilities:

long-term liabilities:

4,964 207,552

930.8 28,789.4

total liabilities and shareholders' equity

In million US $
particulars current assets long-term assets: Comverse 1,027,833 1562031 Idea cellular 495.3 390.5

total assets current liabilities:

2,589,864 982,444

5,975.5 1,613.5

long-term liabilities:

1084188 2,066,632 397,501

1973 3,586.0 5,975.5 In RS crore

Total liability total liabilities and shareholders' equity

B-communications current assets long-term assets: 9001.8 26055 35202.6 6588

Reliance Communications 2439 2731 73068 1932

total assets current liabilities:

long-term liabilities:

21546 28134

15668 73068

Total liability

FINDINGS
Communication is now a strategic sector and the importance of ICT infrastructure is growing. Competitiveness of the countries will depend increasingly on the strength of its ICT infrastructure. India and Israel complement each other very well. Israel has A developed technological base in this sector, a developed process of innovation and R&D, and proven set of products in the sector. While India has a Strong manufacturing and

entrepreneurial capabilities, a huge market that needs telecom equipment and Strong software talent. India and Israel does not do trade on the communication sector. It means that neither India nor Israel does any export or import of products that belongs to this sector. So there is a very much possibility that trade can happen sometime in the future. During our research we have also found out that few industrialists from Israel has visited India for finding out opportunities in this sector. So there is a strong possibility that there may be a trade between the two countries sometimes in near future. Both India and Israel has a strong requirement for Skilled human capital requirement And Global nature of products for plugs and play. The major findings we found during our project are that there is a need of frequent new product, services and tariff introductions. There is a need of bundling of services. The utmost challenge that India and Israel currently face is the shortening of product life cycles in the communication sector. Government needs to support IPR creation by Indian companies as is done by countries worldwide.

RECOMMENDATION
Government needs to create an ecosystem that fosters innovation in strategic sectors Support the indigenous innovators and manufacturers to reach the scale that is needed in the telecom sector There are success stories of partnership between the two countries in Defence, irrigation/ dry land farming so we recommend them to do partnership in communication sector as well. Technology manufacturing Israel is technologically is more advanced in manufacturing communication sector equipment so we recommend Indian manufacturing that develops products based on technology from Israel Innovation sharing Using the Israel model to help set up the model for India Joint development

Joint development of products using the complementary skill sets in the two countries to develop products for the communication sector. Joint Venture for the world Developing JVs that are geared up for the Global market using the Indian market to build scale

CONCLUSION
The communication industry provides data, voice services, graphics, television, and video at ever-increasing speeds and through diverse channels. While landline telephonic communication is still the core service approach, wireless communication, internet, cable and satellite program allocation are increasing their share in overall industry earnings. The industry is experiencing quick deregulation and technology disruption in service offerings. In many markets crosswise the globe, governments are revoking monopolistic policies, and grown-up players face a new breed of competitors.

Israel is technologically more advanced as compared to India while India has an availability of labour at a cheaper rate. So if India and Israel forms a joint venture then they can compete in global market.