Israel has world's lowest rate of wireless investment

By GAD PEREZ/GLOBES
December 8, 2010 15:24

Israel is the country with the lowest investment in mobile infrastructures in the world.

Globes reveals this astonishing figure, which raises a critical question about the economic repercussions of the level of services we receive from the mobile carriers. The repercussions are long term, and drag Israel down to an unflattering position in international comparisons, while Israeli consumers receive poorer but more expensive services than consumers in other countries. The lack of investment is most marked in mobile Internet.

According to a study by Merrill Lynch, Israel's Capital expenditure (Capex)/sales ratio, which measures mobile operators investments, show that Israeli carriers - even allowing for the country's small size - distribute dividends more than they invest in telecommunications infrastructures.

According to Merrill Lynch, the global average capex/sales (revenue from services only) ratio in 2010 was 16%, compared with 8.5% in Israel. The ratio is 17% in emerging markets, 12% in Europe, 16% in Latin America, and 13% in the US.


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