This report profiles Israel’s very dynamic fixed-line voice and broadband market, together with its digital media market. Bezeq has retained the vast majority of the domestic fixed-line voice market but new licences being granted for VoIP service provision are likely to shake up the market. The International fixed-line voice market is already very competitive and recent mergers have created strong players. Israel has one of the highest household broadband penetration rates in the world. Market competition is fierce, both between cable and DSL infrastructures and between ISPs. Competition is also fierce between Bezeq’s satellite TV subsidiary YES and cable TV operator HOT. Israel’s very high broadband penetration rate provides great potential for triple play and digital media market developments and competitors are manoeuvring for position.