Israel Completes Historic 2G/3G Network Shutdown as Pelephone Launches Nation's First 5G-Only Mobile Plans

Israel has completed one of the most significant transitions in its telecommunications history, with the final shutdown of legacy 2G and 3G mobile networks in late 2025 freeing up valuable mid-band spectrum for 5G densification. The milestone has enabled Pelephone, a wholly-owned subsidiary of Bezeq, to become the first Israeli operator to launch 5G-only mobile plans — a bold move that positions Israel among the world's most advanced mobile markets. The government-mandated shutdown, executed under a Communications Ministry directive issued in 2023, required all Israeli mobile operators to decommission their 2G and 3G base stations by December 2025. The freed spectrum — primarily in the 900 MHz, 1800 MHz, and 2100 MHz bands — is now being refarmed for 4G and 5G services, dramatically improving network capacity and coverage. ## Pelephone's 5G-Only Plans Pelephone's new 5G-only plans, launched in January 2026, offer unlimited data at speeds up to 1 Gbps, along with enhanced features including 5G voice (VoNR — Voice over New Radio), ultra-low latency for gaming and video calls, and priority network access. Monthly prices start at NIS 79, competitive with existing 4G unlimited plans from rivals. "We are the first in Israel to offer a mobile experience built entirely on 5G infrastructure," said Pelephone's CEO. "This isn't just faster speeds — it's a fundamentally different network architecture that enables new applications in real-time translation, augmented reality, and IoT connectivity." The plans require 5G-compatible handsets, which now account for over 65 percent of new smartphone sales in Israel. Pelephone has partnered with Apple, Samsung, and Xiaomi to offer subsidized 5G devices for customers switching from older plans. ## 5G Coverage Expansion As of early 2026, Israel's four primary mobile network operators — Pelephone, Cellcom, Partner Communications, and HOT Mobile — have deployed 5G coverage across approximately 75 percent of the population, concentrated in urban areas. The spectrum freed by the 2G/3G shutdown is enabling operators to extend 5G coverage to suburban and rural areas, with the government targeting 95 percent population coverage by end of 2027. The Communications Ministry's "Digital Israel" initiative has allocated NIS 500 million in subsidies for operators deploying 5G infrastructure in underserved areas, including Bedouin communities in the Negev and Arab-majority towns in the Galilee. Noorcom, a smaller operator, has been particularly active in deploying fiber and 5G infrastructure in these areas under government tender programs. ## Industry Consolidation and Competition The Israeli mobile market remains intensely competitive, with four MNOs and several MVNOs competing for a population of approximately 9.8 million. Average revenue per user (ARPU) for mobile services remains among the lowest in the OECD, at approximately NIS 45 per month, driven by aggressive price competition that erupted after market liberalization in 2012. Industry analysts expect the 5G transition to stabilize ARPU as operators monetize premium services and enterprise applications. The convergence of 5G mobile with Bezeq's expanding fiber-to-the-home network — which now reaches over 82 percent of Israeli households — is enabling bundled "quad-play" offerings that combine broadband, mobile, television, and smart home services. ## Looking Ahead The next frontier for Israeli telecom is the deployment of standalone 5G (SA) networks, which eliminate the need for a 4G anchor connection and unlock the full potential of network slicing — allowing operators to create dedicated virtual networks for specific applications such as autonomous vehicles, remote surgery, and industrial automation. Israel's Ministry of Communications has set a target of nationwide 5G SA deployment by 2028, positioning the country as a testbed for advanced 5G applications that can be exported globally through Israel's thriving tech sector.