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Telecommunications Industry Introduction Since the 1980S, Israeli Companies Have Been Positioned at the Forefront of the Global Communications Industry

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Telecommunications Industry Introduction Since the 1980S, Israeli Companies Have Been Positioned at the Forefront of the Global Communications Industry ISRAEL Inspired by innovation Telecommunications Industry Introduction Since the 1980s, Israeli companies have been positioned at the forefront of the global communications industry. From large-scale enterprises spanning global operations, to thousands of smaller start-ups developing far-sighted innovations, technology entrepreneurs have established new standards and technologies that have revolutionized the world’s communications services, transforming Israel into a resourceful hub for advanced telecommunications innovation. Technological innovation and the determination to overcome challenges naturally complement Israel’s entrepreneurial spirit, motivating thousands of people - business executives, scientists, and engineers - who have led Israel’s phenomenal success in the field. Israeli companies are currently involved in all aspects of the modern telecom market, equipping service providers with solutions to their business and technological challenges. From the design of the basic building blocks of microchip processors and microwave components, developing new hardware and software, Israeli expertise also supports the network integration and technological migration of service providers. By developing revenue-generating telco-grade systems and services, service management and optimization solutions, and service delivery systems, Israeli innovation is creating significant value and benefits for operators and users. Field-proven by world leaders in telecommunications, such as Intel, Motorola, Cisco, Nokia, and Alcatel, Israeli telecommunications products are endorsed by operators, system integrators, and technology providers throughout the world. In this way, the “Made in Israel” brand has been established as a synonym for cutting-edge, top quality, technologically-advanced products. Israel’s hi-tech industry, and particularly the telecommunications sector, benefits significantly from its extensive investment in personnel development, technological infrastructure, and expertise. Israel has developed one of the world’s highest concentrations of hi-tech start-ups, second only to Silicon Valley, relying on its high quality, experienced, and technologically-skilled workforce. Telecom by the Numbers Israel’s Telecommunication Exports Israel’s Telecommunication Exports by Region, 2009 6000 5000 Latin & South Africa Rest Rest of European America 4% of the Europe Union 4000 7% world 4% 28% 4% 3000 2000 1000 0 2005 2006 2007 2008 2009 North Total Telecom Exports Asia Year ($ Million) America Equipment Exports 25% 28% Israel’s Telecommunications Technology Israel’s advanced telecommunications technology, based on experience, field-proven solutions, and the spirit of innovation, enables the creation of various telecommunications solutions that match changing market trends and demands. Infrastructure Providing the basic infrastructure for telecommunications, Israeli-made networking solutions are deployed by top tier operators and OEMs around the world. Hardware and software solutions address a wide range of applications, from high capacity trunks, gateways, and signaling, through indoor picocells and access/premises networks, to wired and wireless wide area networks. Israeli companies have deployed large scale wireless, fiber-optic, and wireline networks in support of commercial and military users worldwide, comprising the latest technologies of broadband over wireless, VoIP, network optimization, broadband over satellite, and mobile/airborne satellite communication terminals. Telecom operators utilize Israeli-made hardware to deploy and extend their core networks over wide- area wireless and wired networks. Specialized hardware is designed for metropolitan deployments, ad-hoc and remote sites, industrial and educational campuses. International operators and system integrators benefit from Israeli innovations converging voice and data over broadband networks, employing optimization technologies to effectively manage, operate, and expand services over IP networks. Israeli technologies also support the growing domain of broadband broadcasting, offering core network broadband, wireless, and fiber-optical infrastructures optimized for television, satellite, and cable operators. Israel’s satellite communication solutions range from communication satellites and ground control services to full head-end support, and user-operated systems such as VSAT terminals for fixed, mobile, ship-borne, and airborne applications. Israeli content production, management, and distribution services also support satellite television and cable services with encryption systems, and content management for digital and interactive television, Pay Per View (PPV), Video on Demand (VOD) as well as complete set-top receivers integrating Digital Video Recorder (DVR) applications. Value-Added Services Israeli telecommunication vendors provide a wide and innovative range of value added services for telco-grade delivery platforms. These core services are enriched by messaging, applications, content delivery, and distribution services. Converged communication solutions employing OSS/BSS billing, CRM and customer care are enhancing customer satisfaction and loyalty, while increasing usage and revenue generation. Advanced core networks also include security, revenue assurance, and reliability. Content providers use Israeli platforms for the creation, editing, distribution and billing of attractive personalized rich media content over wireless, cable, and satellite networks. Israeli-made core management applications provide effective management and monetization of services, supporting efficient and flexible billing, network management, and security. Revenue-generating content further empowers web mobile commerce. Applications Israeli telecommunications application vendors offer wide and innovative network-based and client-based revenue-generating applications, which are made possible through merging internet and mobile communication services. Empowered by strong navigation, mapping, and data management capabilities, these solutions span the domains of personalized, location-based advertising; telemedicine; security applications; and business and enterprise solutions. In addition, entertainment value-added services are offered, including gaming, social networking, music, video and messaging introducing new revenue-generating opportunities from content delivery and mobile commerce. Handsets & Devices Handset manufacturers, integrators and network operators turn to Israeli vendors for the latest handset technology and gadgetry. OEMs trust their Israeli partners to introduce microelectronic communication devices implementing the latest protocols in a timely manner, maintaining competitiveness in the market. Modular and feature-rich, Israeli-designed handsets offer service providers and OEMs technological opportunities to match the unique requirements of specific user groups and rapid time to market. New components and micro-electronic cores empower next generation handsets, supporting advanced standards such as 4G and LTE. These capabilities are defining new trends in the mobile world, addressing handsets’ user interfaces, voice, image and handwriting recognition, navigation, image processing, and security. Israeli-designed applications and software clients are empowering users and service providers, introducing new uses for electronic appliances - from GPS navigation, home networking, and security, to video and voice over IP. Multinational Corporations in Israel Multinational corporations such as Intel, Microsoft, Motorola, IBM, Google, and Cisco have established a strong presence in Israel, with operations spanning research and development centers, production facilities, and regional sales and support offices. World-leading companies have invested billions in the acquisitions of Israel-based technology companies and start-ups. A partial list includes: ► Motorola has expanded its operations in Israel since 2007, establishing a fourth R&D center in the north of the country. Motorola employs over 3,000 people throughout Israel. ► Microsoft has found Israeli technologies attractive and has made numerous acquisitions in Israel – Whale Communications is one of the most recent. ► Samsung acquired TransChip Israel Ltd. in 2007. It currently has an important R&D center under the name “Samsung Semiconductors Israel”. ► Lucent acquired Mobilitec in 2006 - a content management software for wireless service providers. The acquisition strengthened Lucent’s position in next-generation platforms (Cellular and IMS), offering advanced services for mobile and broadband users. ► Cisco Systems has made more than 10 acquisitions in Israel since 2000, strengthening its leading position in the global networking sector. ► IBM R&D Labs was established in 1972 and has over 1,000 employees in Israel. IBM has made numerous acquisitions of Israeli hi-tech companies, with the recent acquisitions focusing on storage management and data recovery. Israeli Success Stories ► RAD Group: A world leader in voice and data communication technologies, RAD operates a family of independent companies offering a wide range of solutions for the networking and telecommunications industry. These include RAD Data Communications, supporting the migration of service providers to next generation networks (NGN) and improving voice services over bandwidth-constrained gateways. Radcom provides service providers with probe-based service assurance solutions. RAD’s Ceragon Networks employs high-capacity microwave networking for mobile,
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