Israel has always describe itself as a country that depends on its intellectual resources for survival development. Today, Israel is home to one of the most vibrant technology centers in the world. In 2003, the country drew a whopping USD1. 1 billion in venture capital funding, placing it behind only Boston and Silicon Valley in attracting funding for start-ups. Five major Internet service providers and approximately 70 smaller ISPs serve 3.6 million Internet users, about 60.6 percent of the total population in 2006.

Israel's Main ISPs

ISPs	Websites
Netvision	www.netvision.net.il
Internet Zahav	www.zahav.net.il
Bezeq Beinleumi	www.bezeqbeinleumi.net.il
Barak ITC	www.barakitc.co.il
Actcom	www.actocom.coil

According to sources, Israel ranks highest in the world in hours per user spent on the Internet, at 57.5 hours a month. The vast majority of Isralis access the Internet from home, though many also do so at school, work and other sites. Although blogs remain a relatively marginal activity in Israeli cyberspace, the Internet is now the main source of news for 26 percent of online users, second to television but surpassing print newspapers. The Internet is increasingly seen as a communication tool.

Initially, Internet penetration in Israel increased slowly because of the high cost of service - especially for broadband access. Since 2001, however, the government has taken steps to allow for a competitive environment by increasing the number of service providers leading to reduced costs for users and dramatically increasing Internet use in general and broadband access in particular.

The Ministry of Communications (MOC) regulates the Internet as part of the telecommunications sector. Prior to the 1980s, the Israeli government controlled both telecommunications regulation and operations. In 1984, however, those functions were split, and all telecommunications facilities were transferred to Bezeq, a state-owned company (which was privatized in 2005). Bezeq's monopoly on fixed-line transmission within Israel undoubtedly led to high costs of Internet service in Israel. Fortunately, after Bezeq's legal monopoly on fixed-line services expired in 1999, the MOC began liberally issuing licenses to competitors. This and coupled by other regulatory changes led to a burst of competition within the Internet sector - lowering prices and contributing to a large increase in Internet penetration after 2001.

The average cost for an hour's surfing on the Internet

Type of Payment	Average Hourly Cost
To Bezek, by meter	0.35
To Internet Provider	1.75 - 1
Total for Internet hour	2.19 - 1.44

Source: Institute for Advanced Strategic and Political Studies. Internet Infrastructure in Israel: A proposal for reform. August 1999.


Israel does not filter the Internet, and in this respect maintain the freest Internet community in the Middle East. However, as proposed legislation to restrict access to pornography and violent content conline continues to be debated, and as the space for online media increases, the Internet will likely challenge established practices of Israeli censorship.


Key Indicators - Internet Penetration in Israel

Source : OpenNet Israel