The Information Technology Landscape in Israel
Analysis: Impacts on the Non-IT Business
Overall, the IT
industry provides a positive outlook for both Israeli and Foreign Non-IT
businesses. Israel has gone through a number of changes in government policy
regarding the IT infrastructure and legal components of the IT industry. These
changes have created a number of opportunities for businesses to take advantage
of connectivity and has encouraged innovation in other sectors of the Israeli
labor market.
Israel's recent deregulation and liberalization of its telecommunications market is an extremely encouraging aspect for non-IT business investors. In order to comply with its World Trade Organization commitments, Israel has been successful in opening its telecom markets to competitors. With the introduction of competition, new services are being offered to enhance small and large businesses alike. Prior to this trend, the market was controlled by the incumbent monopoly carrier Bezeq, that provided all communications services including wireless and international long distance. New regulations have not only introduced new competitors and services but it has also encouraged Bezeq to improve its own service in order to maintain its market leader position.
Israel is also installing other advanced communications in order to support both IT and NON-IT business, thus encouraging more investment to the country. The recent installation of submarine optic cable systems to improve international telephony traffic and AMOS, the first commercial telecom satellite for television, radio and data transmission has also increased the value of the overall IT infrastructure in the region. These new non-terrestrial links offer businesses alternative means of communications for all service sectors.
Internet connectivity has also improved greatly, with over 40 service providers, businesses are able to shop around and find the service that will best support their needs at a competitive price. Support for both hardware and software is also readily available as a result of the nation's highly technology educated population.
Finally, the amendments to the national laws of copyright, trademark and patent have gone far beyond to protect the rights of new IT innovations but have also improved the legal infrastructure that protects all new ideas cross-cutting all industries. Legal protection of ideas will encourage businesses to be proactive in developing new innovative ideas and products.
