How IBC Transformed Israel's Fiber Optic Infrastructure Market
Israel's fiber optic infrastructure provider IBC has undergone a remarkable turnaround, expanding its network to 2.6 million households and approaching one million active subscribers under CEO Yossi Haber.
Israel's fixed telecommunications market, dominated for years by Bezeq and HOT, lagged behind global standards in internet speeds. According to the Knesset Research and Information Center, the average fixed internet speed in Israel stood at a mere 12.8 Mbps in 2017, placing the country below the OECD average. To spark competition, the state launched the IBC (Unlimited) venture in 2013 to deploy fiber-optic networks. However, the national project struggled, accumulated debt, and nearly faced bankruptcy before a major turnaround in September 2020.
The entry of HOT as a partner alongside Bezeq's aggressive fiber rollout ignited an infrastructure race. Today, Israel ranks 11th globally in internet accessibility and speed according to the Ookla index, with nearly every household connected to fiber. For IBC, this momentum culminated in a massive deal where an investor group led by Harel Insurance Investments and Financial Services Ltd., Mor Investment House, and Noy Fund acquired a 70% controlling stake at an estimated valuation of approximately ₪2.2 billion.
Transition to Telecom from the Shadows
Despite its high valuation, IBC operates with a lean team of just 60 employees. Yossi Haber, who assumed the role of CEO in January 2022 after serving as CFO at HOT, led the company's transformation. Haber spent years in the Israel Security Agency (Shin Bet) before entering the telecommunications sector. In an interview, Haber discussed the company's journey, the competition with Bezeq, and future growth engines.
"To understand where we are today, we must remember where it all started," Haber says. "The venture was established in 2013 as a governmental project to deploy fibers over the Israel Electric Corporation grid. At the time, Cellcom and Partner began deploying independent fibers using cherry-picking methods in the most profitable and dense areas, while Bezeq chose not to activate its buried dark fibers."
The Infrastructure Race and Market Dynamics
IBC currently boasts a nationwide fiber footprint reaching 2.6 million households, closing in on Bezeq's 3.03 million. Haber notes that this grants Israeli citizens a dual physical fiber infrastructure for the first time. Regarding active subscribers, IBC is approaching one million active users by the end of the year, competing head-to-head with Bezeq.
Unlike Bezeq, which sells internet directly to consumers, IBC operates strictly on a wholesale model. It builds and maintains the physical infrastructure while retail providers such as Cellcom, HOT, and Partner sell packages to end users. Haber emphasizes that this model allows the company to monitor the network 24/7 at the building and individual fiber levels using advanced artificial intelligence tools to predict and prevent failures.
Future Growth and the Business Sector
Looking ahead, Haber identifies the business sector as the next major growth engine. While Bezeq has dominated the enterprise market for decades, IBC aims to provide a robust alternative for small and medium-sized businesses, law offices, and commercial spaces. Following recent acquisitions, such as Rimon Internet's fiber infrastructure, IBC continues to solidify its position as a leading wholesale network provider in Israel.
