1. The Israel Export & International Cooperation Institute presents:
Israel
Telecommunications
Industry

2. Israeli High-Tech
4,500 $20.2B 51%
No. of Israeli Israeli
Exports Industrial
Companies
Export
Communications
Software
Major Fields Electronics
Healthcare Products
Pharmaceutical and BioTech
Source: Economist Intelligence Unit 2009 and IVC

3. Facts

4. Israel- Macro Economic Indicators
Criteria 2005 2006 2007 2008 2009
GDP ($B) 134.3 145.8 167 202.1 194.8
GDP Real Growth rate (%) 5.1% 5.3% 5.2% 4% 0.7%
GDP per Capita (PPP, $) 23,390 24,980 26,560 27,710 27,770
Exports of Goods & Services ($B) 57.2 62.4 71.3 80.8 67.5
Imports of Goods & Services ($B) 57.6 61.7 73.5 84 63
Unemployment Rate (%) 9% 8.4% 7.3% 6.1% 7.6%
Inflation Rate 2.4% -0.1% 3.4% 3.8% 3.9%
Current Account balance (% of GDP) 3.1% 5.1% 2.9% 0.7% 3.7%
The 2009 Global Economic Crisis had a relatively small effect
on the Israeli economy

5. Goods & Services Export Development ($B)
Services Export
Merchandise Export
24.1
21.1 21.7
19.3
17.4
16.0
15.4
12.9 12.2
57.2
49.8 45.8
39.8 43.3
30.9 36.3
4.6 27.7 27.2
6.0
2.7
6.0 12.7
2.7
1980 1990 2000 2001 2002 2004 2005 2006 2007 2008 2009
Constant Growth in a Long Term Perspective

6. Hi-Tech Export ($M)($B)*
Field 2006 2007 2008 2009
Pharmaceutical 3,286 3,636 4,970 4,673
Communications 4,370 4,916 5,071 4,014
Electronics (Inc. Electro-Optics) 3,779 3,744 3,716 5,924
Healthcare Products 1,450 1,573 1,600 1,397
Software 4,320 4,560 5,680 4,200
Total 17,205 18,429 21,037 20,208
*Estimate

7. ISRAEL - 2009 Goods Export (excluding diamonds)
Rest of Europe 5.5%
$2B
EU 29%
North America 35% $10.5B Asia 16.5%
$6B
$12.6B
Africa 3%
$1B
Latin America 4%
$1.4B
Rest of the World 7%
$2.7B
Shifting to Asian Markets

8. Israel’s R&D Investments as % of GDP
Source: Central Bureau of Statistics

9. Israel is ranked
#1 In Venture $/GDP
#1 In No. of Engineers per Capita
#1 In Listed Companies in NASDAQ (non-American)
#1 in No. of High-Tech Startups after the U.S
Source: Economist Intelligence Unit 2009

10. Israeli Telecommunications by Numbers
$4.1B 590
Exports No. of Exporters
Highly Skilled Workforce
Innovative Start-up Companies Local Market :
Active Regulator
Points of Strengths
4 Mobile Providers, 5 Wire Line Providers
Early Adapting Market with High Penetration Rate
Triple & Quad Play Offerings
A Highly Competitive De-Regulated Domestic Market
A perfect Test-Bed

11. Main Target Markets Telecommunications
USA
ROW 25%
14%
Asia
Europe
28% 33%
Shifting to Asian Markets

12. Key Segments
Apps VAS HS & Devices Infrastructure

13. Key Segments
Apps Infrastructure
HS & Devices VAS

14. Infrastructure
Network Equipment and Systems
Wireless:
4G / LTE
Wi-Max
Network Optimization
Converged Communications
Broadband, DSL
Wi-Fi / Mi-Fi
Femtocell / Picocell
InBuilding Coverage
Network Components:
RAN & Backhauling
Core Switch & Routing
Modems
IP Infrastructure & Service Platforms
Satellite Communications

15. VAS
Customer Care & Billing
Customer care & Self Customer Care
Billing
Post-Paid
Pre-Paid
Converged
CRM and Customer Base Analysis
Churn Prevention
Customer Care & Billing
VM
Voice Mail
Video Mail
Text & Multimedia Messaging
IM / E-Mail / Chat
Content
Content Delivery Platforms
Content Adaptation
Mobile Internet
Mobile TV IPTV

16. Applications
Gaming
Location Based Services (LBS)
Music
Social Networks
Mobile Advertisement

17. HS & Devices
Operating Systems
Pre-Installed Applications
Clients
Devices
Components
Processors
Chips
Antennas

18. Telecom: Leadership & Innovation
The Global Leaders
The Forming Leaders
The Innovative Coming Global Leaders

19. Why
Israel?

20. Focus on Innovation

21. Multinational ISVs with R&D & Manufacturing Centers in Israel*
* Partial List

22. Success Stories
Some leading examples:
M-Systems Invented and develops the flash data
storage solutions for digital mobile devices and
consumer electronics markets
Comverse (Founded in 1982) , originally founded in
Israel, is a global leading VAS vendor. Comverse was the
pioneer in Voicemail, SMS and service delivery
platforms, installed in more than 500 Service providers
world-wide

23. Success Stories - Cont’
Some leading examples:
ICQ (Mirabilis) – The first internet instant messaging,
launched in 1996 and acquired by AOL for $407M. ICQ
had opened the way for today’s social networking arena
VocalTec – The developer of IP Telephony
Communications, released the first VoIP program at 1995

24. Success Stories - Cont’
Some leading examples:
Alvarion is the leading Wi-Max & Broadband wireless
systems provider to service providers. Alvarion installed
base includes around 300 deployments over 150
countries
Jajah – The leading provider of VoIP service
connecting two mobile or fixed “traditional” lines,
without downloading any software

25. The Israel Export & International Cooperation Institute
Promoting Business Relationships between Israeli
and Overseas Companies on All Levels:
Technological
Commercial
Industrial
Facilitating: IEICI was established in
1958 jointly by the Israeli
Trade Opportunities government and the private
Joint Ventures sector as a non-profit
Strategic Alliances organization.
Technological Collaborations

26. Your Key to Israel’s
Telecommunications Industry
The Israel Export & International
Cooperation Institute
Mr. Roy On
Business Development Manager
Telecommunications Industry, Technology Industries Division
Tel: + 972 3 514 2955
E-mail: royo@export.gov.il
Website: www.export.gov.il

27. Thank you!
Questions & Comments