fiber
  • Economics & Trade

Fiber Optics increases GDP

  •   Minister of Communications presents the fiber optic surge
  • 8/2/2022
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    ​Israel's Minister of Communications today (Monday) published the latest accessibility data and the satisfaction of Israeli citizens connected to optical fiber infrastructure

    Minister of Communications, Yoaz Hendel, stated: “The fiber optic revolution turned from a dream into a reality on the ground within a period of two years. The public has learned to understand the opportunity of broad band Internet ... (and) there is a tremendous demand for fiber optics ... by the end of the year, 70% of Israelis citizens will have access to fiber optic infrastructure.”

    There are now over 670,000 fiber optic subscribers in Israel, with over 1.6 million households having access. Following the recent massive deployment in high-rise residential buildings, in recent months the ministry is now focused on low-rise buildings and houses that characterize the peripheral areas.

    Part of the funding comes for the expansion comes from telecommunications companies that must pay a total amount of approximately NIS 90 million into the incentive fund, used to subsidize the deployment of fiber in areas lacking economic viability. The second incentive tender is slated to get underway this October. It will advance the rate of deployment and the expectation is that in 2026, all households in Israel will have access to fiber optic infrastructure.

    Based on recent World Bank figures, an educated population has a 7-13% higher chance of finding a job increases with access to fiber-optic Internet, and a 1% increase the use of fixed (non-mobile) communications infrastructure can increase a country’s GDP by 0.08%.