television but surpassing print newspapers.
7
The
Internet is also increasingly seen as a communication tool,
8
even a “new battleground,” for vital
Israeli interests and the national image.
9
Initially, Internet penetration in Israel
increased relatively slowly, because of the high
cost of service—especially for broadband
access. 10 Since 2001, however, the government
has taken steps to allow more service providers
to compete in Israel, reducing costs and dramatically increasing Internet use in general and
broadband access in particular. 11 Bezeq, a formerly state-owned telecommunications giant that
privatized in 2005, began offering ADSL service
in 2001. 12 In large part because of the introduction of broadband cable modem access offered
by cable companies in 2002, the percentage of
households using broadband Internet increased
from 4 percent in 2002 to 62 percent in 2006, with
broadband service costing approximately USD9
a month. 13
Legal and regulatory frameworks
The Ministry of Communications (MOC) regulates the Internet as part of the telecommunications sector. 14 Prior to the 1980s, the Israeli
government controlled both telecommunications
regulation and operations. In 1984 those functions were split, and all telecommunications facilities were transferred to Bezeq, a state-owned
company. 15 Bezeq’s monopoly on fixed-line
transmissions within Israel led to a relatively high
cost of Internet service in Israel.
16
After Bezeq’s
legal monopoly on fixed-line services expired in
1999, the MOC began liberally issuing licenses to
competitors. This and 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. 17
Israel’s history as a state under constant military threat has strongly influenced its approach
toward the control of information. Censorship of
the media was “frozen” in law in 1945, when the
military censor was authorized to ban the publication, printing, importing, and exporting of any
material likely to cause damage to the security of
Israel or public order. 18 Since then, censorship of
sensitive, security- or military-related information
has operated through voluntary agreements
between military authorities and an editors’ committee (the Israeli Committee of Daily Newspaper
Editors). These agreements provide a platform
for practical negotiation with a built-in arbitration
body, and have been renewed periodically since
Country Summaries
305
KEY INDICATORS
worst
best
GDP per capita, PPP (constant 2000 international $) ......22,960 7.63
Life expectancy at birth (years)..............................................79 7.09
Literacy rate (% of people age 15+)......................................97 6.68
Human development index (out of 177) .................................23 7.43
Rule of law (out of 208).........................................................56 6.53
Voice and accountability (out of 208).....................................70 6.21
Digital opportunity index (out of 180).....................................13 8.09
Internet users (% of population) ..........................................46.6 7.44
Source (by indicator): World Bank 2005, 2006a, 2006a; UNDP 2006; World Bank 2006c, 2006c; ITU 2006, 2004
7
The
Internet is also increasingly seen as a communication tool,
8
even a “new battleground,” for vital
Israeli interests and the national image.
9
Initially, Internet penetration in Israel
increased relatively slowly, because of the high
cost of service—especially for broadband
access. 10 Since 2001, however, the government
has taken steps to allow more service providers
to compete in Israel, reducing costs and dramatically increasing Internet use in general and
broadband access in particular. 11 Bezeq, a formerly state-owned telecommunications giant that
privatized in 2005, began offering ADSL service
in 2001. 12 In large part because of the introduction of broadband cable modem access offered
by cable companies in 2002, the percentage of
households using broadband Internet increased
from 4 percent in 2002 to 62 percent in 2006, with
broadband service costing approximately USD9
a month. 13
Legal and regulatory frameworks
The Ministry of Communications (MOC) regulates the Internet as part of the telecommunications sector. 14 Prior to the 1980s, the Israeli
government controlled both telecommunications
regulation and operations. In 1984 those functions were split, and all telecommunications facilities were transferred to Bezeq, a state-owned
company. 15 Bezeq’s monopoly on fixed-line
transmissions within Israel led to a relatively high
cost of Internet service in Israel.
16
After Bezeq’s
legal monopoly on fixed-line services expired in
1999, the MOC began liberally issuing licenses to
competitors. This and 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. 17
Israel’s history as a state under constant military threat has strongly influenced its approach
toward the control of information. Censorship of
the media was “frozen” in law in 1945, when the
military censor was authorized to ban the publication, printing, importing, and exporting of any
material likely to cause damage to the security of
Israel or public order. 18 Since then, censorship of
sensitive, security- or military-related information
has operated through voluntary agreements
between military authorities and an editors’ committee (the Israeli Committee of Daily Newspaper
Editors). These agreements provide a platform
for practical negotiation with a built-in arbitration
body, and have been renewed periodically since
Country Summaries
305
KEY INDICATORS
worst
best
GDP per capita, PPP (constant 2000 international $) ......22,960 7.63
Life expectancy at birth (years)..............................................79 7.09
Literacy rate (% of people age 15+)......................................97 6.68
Human development index (out of 177) .................................23 7.43
Rule of law (out of 208).........................................................56 6.53
Voice and accountability (out of 208).....................................70 6.21
Digital opportunity index (out of 180).....................................13 8.09
Internet users (% of population) ..........................................46.6 7.44
Source (by indicator): World Bank 2005, 2006a, 2006a; UNDP 2006; World Bank 2006c, 2006c; ITU 2006, 2004