February 2001

Israel Summary Report (1999 - 2000)

The Parliamentary Sub-Committee "Preparation of Israel towards the Information Age" (Eitan Committee) was established in the Economy Committee of the Parliament (Knesset). The umbrella report it produced assisted by some 80 consultants which volunteered to the task was published in April 1997 and has since guided several governmental initiatives. The chairman of that committee is now establishing the Internet Lobby in the newly elected parliament. Among the projects implementing the above mentioned parliamentary report are the TEHILA and the HILA projects:

Ministry of Finance - TEHILA: - The Vice-Director of the Division of National Accountancy at the Ministry of Finances heads the Governmental Internet Committee. The Tehila Project (The Internet at Service of the Israeli Government) was established by this committee and is headed by the Chief IT Officer at the Ministry (Vice-National Accountant). Its purpose is to integrate the Internet into the government's working processes. It includes the establishment of a secure servers farm for Internet access by governmental ministries; several initiatives for making government more accessible to the citizen; training of government officers in the use of the Internet; electronic forms access and more.

HILA: Preparing Israel for the Information Age: a project established at the PM office following the Eitan Report. It includes the establishment of a Web Portal to Government setting up a common entry to governmental services and the "Computer for Every Child" program in collaboration with the Ministry of Work and Welfare. Later it has been transferred to the Ministry of Science, Culture and Sports.

Ministry of Industry and Trade: several branches have an important role related to the Information Society in Israel. A forum on Electronic Commerce has been established by the director-general in cooperation with the Israel Industries Association. Other important functions:

The Office of the Chief Scientist and the Directorate for Research and Industrial Development: This is the main source of governmental resources for supporting innovation in the Israeli industry. Among the different programs of this office are the generic technologies consortia; the technological incubators program; international cooperation programs.

Among the relevant generic technologies consortia we find the Israeli Broadband Telecommunications R&D Consortium and the Multimedia Broadband Consortium; the later announced a R&D program of 100 million dollars (including the investment of the members). Both consortia include companies which play significant roles related to distance education products; video on demand and other interactive technologies.

International Cooperation and Exports: Among the institutions related to the Ministry of Trade and Industry is MATIMOP, The Israeli Industry R&D Center who is in charge of the bi-lateral international agreements of the Ministry; in addition to awareness initiatives it maintains a public available database of companies and projects, many of them in areas like software, computers, communications, electro-optics, electronics and other areas relate to the IS. It also hosts the IRC Innovation Relay Center in Israel. Another institution is ISERD the Israeli Directorate for the Fifth Framework Program. The Ministry of Trade and Industry has the leading role although it is defined as an inter-ministerial initiative (Ministries of Science, Culture and Sports, Ministry of Finance, Foreign Affairs and the Council of Higher Eduation). The IST program in the 5FP is one with substantial Israeli participation. The Export Institute provides training and marketing support to the industry; exhibitions; maintain databases and provide other information services for the industry and interested parties abroad. The SMEs Authority is another independent non-profit association established by the Ministry that developed information services supporting this target population of enterprises in Israel.

EDI - The Ministry is involved through the Export Institute and other institutions, the Israel Industry Association and the Ministry of Finance in advancing EDI applications in the Israel.

An inter ministerial committee for the preparation of the new RTD Support Law was established and is chaired by the new Chief Scientist of the Ministry of Trade and Industry, Carmel Vernier, and by the head of the Budget Division of the Ministry of Finance, David Milgrom. Carmel Vernier does not demand that the budget for RTD be enlarged but expect it to be defined as a fixed percentage of the overall GPB or the government budget. His purpose is to have more flexibility and a larger latitude for decision in setting up and carrying out the RTD policy. He thinks that in the new law, several programs should be included like the MAGNET program for joint infrastructural research by the academy and the industry; the Technological Incubators program; the international cooperation programs. His purpose is to have all these programs under the same umbrella as policy tools of the Chief Scientist Office. He suggest more flexibility regarding the results of the RTD process – instead of insisting that the production should remain in Israel the new law will demand that the fruits of the Intellectual Property that was developed by RTD with support from the government RTD program should remain in the country. The share of the government grants for RTD should be up to 50% and the research committees should be allowed, in a case by case basis, to determine the exact amount. (Haaretz, June 11, 2000 page C1).

Ministry of Science, Culture and Sports: The Ministry plays an important role related to IS in Israel. Since 1993 following the recommendations of the Committee of the Thirteen several National Infrastructures Committees have been established. Their role is to support research that may be defined as in between basic research and the applied RTD supported by the Ministry of Trade and Industry Chief Scientist. The National Committee for Information Technologies Infrastructures launched the program for demonstration projects for the Super Highway of Information. It has supported several such projects between 1995 and 1998: projects to provide access to government information (Central Bureau of Statistics, The Citizens' Counseling Service); digital libraries; community networking; development of Hebrew support for search and harvesting engines; distance learning and more.

The National Committee is focus now in projects which may extend the support for Hebrew in ICT and the Internet II Project.

Internet II /New Generation Internet The Internet II Israeli project has been launched in 1999 and the Minister of Science announced an investment of 40 million dollars in the next four years for the project. It will provide a test bed for research in broadband technologies applications and the provision dedicated bandwidth and Quality of Service networks. The management of the project was outsourced by the Ministry of Science to the IUCC (Inter University Computer Center). The network is already in place and has been connected to the StarTAP in Chicago and to the GEANT network in Europe. The project is open to the participation of the universities and qualified R&D industrial partners. It is not intended to substitute in routine Internet services. The envisioned applications encompass telemedicine, virtual reality tele-working, distance learning, visualisation in chemistry, biology and physics; digital libraries and more.

Support for basic research in the academy is provided through the Committee for Planning and Budgeting of the Coucil for Higher Educations. Although nominated by the Minister of Education the Council is quite autonomous being budgeted directly by the Ministry of Finance and not through any specific Ministery. The head of the planning and budgeting committee is Prof. Nehemia Lev Zion, former chairman of the Open University. The Council has launched an ambitious program for distributed, ICT based, learning at the Universities. The tender was announced in May 2000 and implementation started in the academic year 2000-2001. The consultant for the program is Ehud Or former director of the Open University and Prof. Michal Beller.

Ministry of Communications: The Ministry is the main planning and regulatory institution and its activities are described at lenght in the regulatory master report.

Bank of Israel, office of the Supervisor of the Banks: the office has a regulatory role in the process of introducing distance banking in Israel and banking services through the Internet.

Ministry of Foreign Affairs: The Ministry has pioneered the intensive use of the Internet to provide information about Israel. It maintains large email distribution lists and its 'web site is the best source for updated information on Israel. It includes both background documents as well as updates concerning current political developments.

EUMEDIS Focal Point: At the request of the Ministry of Foreign Affairs the EUMEDIS Focal Point for Israel has been established in ISERD, the Israel Directorate for the EU RTD Programs. EUMEDIS is an initiative of the European Commission for the development of the Information Society in the countries of the Mediterranean. It is an outgrowth of the Barcelona process and includes several strands: promotion of the IS through the Focal Points established in all Mediterranean Countries; connexion of the research networks to the European network; regulatory monitoring and intervention; and support for pilot projects in five areas: Health, Education and Training, Tourism and Cultural Heritage, E-Commerce and Innovation in Business and Industrial Processes.

Parliamentary Committee on Science and Technology: in 1999, under the chairmanship of M.P. Anat Maor the Parliamentary Committee on Sciences has assumed responsibility for matters related to the development of Information Technology infrastructures in Israel. Later, an Internet Sub-Committee was set up as part of the Science and Technology Committee M.P. Michael Eitan was elected as chairman The installation of the committee has taken place January 4, 2000 with the Internet Day in the Parliament (see Promotional Activities report).

The Internet and IT Committee of the Knesset (Parliament) established professional Working Groups to prepare policy documents for an Information Society policy in Israel. The leaders of the Working Groups are: Internet II: Avi Cohen; ISPs: Doron Shikmoni; Personal Identification: Menahem Guterman; Hi-Tech Industries: David Efrati; ICT in K-12: Dr Hamotal Hameiri and Dr. Edna Yaffe; Teacher's Training for ICT Applications in Education: Dov Winer; Life-long learning: Prof. Michal Beller and Ehud Or; The Digital Divide: Shmil Ginzberg; Electronic Commerce: Hanoch Herman; Legislation: M.K. Eliezer Zandberg; Data Protection: Yossi Margalit; Freedom of Information: Ishai Menuhim; Online Democracy: Vered Malca; The Arab Sector in the Internet: Jaffar Sabah; Regulation: Amir Ezioni.

The Council for Privacy Protection is a public body with representatives from the public and officers like the Registrar of Databases, Adv. Yosefa Tfairo, a representative of the Police, Rachel Adelsberg. The chairman of the Council is the General Director of the Israel Lawyers Chamber, Adv. Chaim Klugman, former director general of the Ministry of Justice. It operates in close collaboration with the Ministry of Justice.

An unit dedicated to Electronic Commerce Legislation has been established at the Ministry of Justice, the Department for Counselling and Legislation. It is managed by Adv. Lihi Feldman. (Haaretz, 10.1.2001, E3).

The divisions of the Ministry of Education, Culture and Sports that have an important role in IS in Israel are the following:

Directorate for Science and Technology – (director, Yaffa Vigodsky) The second phase of the computerisation program of the educational system in Israel is being carried by the Directorate in cooperation with the Local Authorities and the National Lottery (with a joint budget of some $ 45 Million a year for five years). The program will provide the necessary equipment for the schools. training and pedagogical support for teachers; the target is to provide one computer for every ten students in the system. A regional logistic support system is now being put in place. Other central initiatives of the Directorate include the establishment of Centers for Science and Arts (with the Lottery); the program for inducing girls to choose technological professions; a new program for Science and Technology in Junior High-School and many more.

Directorate for Information Systems – (director Sophia Minz) The Kishurim project, carried out in cooperation with the Local Authorities in Israel is establishing a pedagogical and an administrative network connecting the schools, municipalities, community centers, pedagogical and teachers centers, and other institutions of the educational system. Other functions include the provision of information for strategic management; operation of the computerised administrative systems of the schools MAMBAS; citizen access to educational information; dissemination of the use of the Internet and Intranet in the Ministry.

Directorate for Training and Education of Teachers – (director Sarah Ziv) The Division for Teachers Education established, with the Mofet Institute, in the framework of the Tommorrow '98 Program the National Network of Teacher Education Colleges (MACAM98). It connects 36 colleges and serves about 15,000 users. The Development Team for this network has a pioneering role in Israel in disseminating the use of the Internet and in the establishment of Virtual Leaning Environments. The Division for Teachers In-service training established a large training center focused on IT at which teachers periodically come for basic and advanced training.

Tomorrow '98 Program: The main project for Science and Technology in the educational system followed the Harari Report of 1993. It has introduced ICT applications in all subject matters including social studies and humanities; it involved also an intensive program of equipment and upgrading of facilities of the schools. Regional pedagogical support centers for supporting teacher in the use of IT technologies have been established. The program has been followed up by the second phase for computerisation of the educational system described above.

Regional projects Several regional projects in the educational system have a strong IT component and have been the basis for the establishment of regional pedagogical networks. Among them the Zfonet (North) and the Madarom (South) networks.

There are a few leading Technology Schools Networks in Israel. They became the basis for the establishment of Internet based networks among the schools. The main networks are ORTNet (from the Israeli ORT Organisation) and AmalNet (belonging to the Syndicates Technology Schools Network); an additional one is the Amit Network of religious technology schools.

There are many other initiatives based either of universities, non-profit corporations, or corporations. The Snunit Project at the Hebrew University in Jerusalem caters to the K12 population and teachers is one of the pioneer initiatives in this area in Israel; it maintains also the Aviv ORT Virtual School for the ORTNet network. The Center for Educational Technology has developed several training packages and networking tools for schools and provide content, including advanced network support for Arab Language studies. The MAPAT Amal is an important center for training and production of databases and CDs

The HQ of the Computerisation Program for the Educational System is intensively negotiating with the new providers of broadband communications in the Israeli market. They intend to obtain the best conditions for the universal connection of educational institutions using such technologies as ADSL, cable TV modems, digital satellite and the ATM public network. The members of the HQ in the Directorate of Science and Technology of the Ministry of Education directed by Yaffa Vigodsky are: Dr Uzi Melamed (head); Roni Dayan, director of the Department for Computer Applications in Education; Anat Cohen, Inspector in charge of special initiatives and projects; Iris Raviv (communications) and Miki Gal (consultant). A Metadata standardization initiative under way and is to be launched in concert with similar European projects.

The Universities are connected to the Internet through the ILAN (Israel Academic Network) maintained by the IUCC (Inter University Computer Center) that provide the basic networking and information services. In addition they have IS relevant projects targeted either to their students (distance education) or to the k12 population. Centers for Science Education in the Universities or other outreach programs host educational programs making extensive use of IT: The Technion (The Israel Technological Institute); the Bar Ilan University; the Tel-Aviv University; the Hebrew University of Jerusalem; the Weizmann Institute and the Ben Gurion University. The Open University works in close collaboration with the Center of Educational Technologies; it operates an ambitious, satellite based program for distance education in collaboration with the Gilat Corporation. Another corporation active in the area of satellite based distance education is the Harel Tikshoret.

There are many other educational networking initiatives among them the Schoolink package of the CET associated to the Kishurim program and the Schoolnet network; Netschool; Keshev; Edusystems network and many more.

Multimedia Industry: Israel has a very active Multimedia Industry. It is mainly oriented to foreign markets; the local educational system enjoys from well developed products made available by these companies in localised versions. A department for marketing educational products has been established at the Ministry of Education (director Yaffa Gev).

The Jewish Agency through its Education Department provides several databases and Web sites available through the Internet; it provides support to teachers and other educators. The Partnership 2000 program from the Israel Department develops programs twinning schools and communities in Israel and abroad using IT; many other institutions related to the Jewish Agency have similar programs.

MAKASH - Advancing CMC Applications in Education is the National Coordinator for Israel participation in Netdays Europe (DG Education and Culture). It represents Israel in the EUN (European Schoolnet). It acts in close cooperation with the Directorate for Science and Technology and the International Relations Unit of the Ministry of Education.

EUN membership: Israel has been accepted as a full member of the EUN (European Schoolnet) where it will participate along the Ministries of Education of the EU. Among the projects and initiatives in which Israel is taking part are the ENIS network (European Network of Innovative Schools); the ValNet project; the Virtual School; the ETB (European Treasury Browser) establishing a distributed digital library of educational resources in Europe; and more. Yaffa Vigodsky is the member of the EUN Steering Committee for Israel.

Educational Television: Subordinated in principle to the Ministry of Education it has the largest chunk of broadcasting time in Israel. It broadcast through the First (Public) Channel; the Cable TV system and the Second (Commercial) Channel. It is an important element in the production of advanced localised educational content. It started to market general education programs based on videocassettes and telephone support.

The new fund was launched by Prof. Zamira Mevorah, the chief scientist of the Ministry of Education and Yaffa Vigodsky the head of the Directorate for Science and Technology. Among the presenters at the inaugural seminar were Prof. Kenneth Price from the Center for Science Teaching at the Ben Gurion University; Prof David Chen, head of the School of Education at Tel Aviv University; Gabi Solomon, head of the School of Education at the

University of Haifa; the director of the Ministry of Education, Shlomit Amihai.

3. Telecommunications and Broadcasting

The regulatory body in this area of cable TV and satellite is the Council for Cable and Satellite Broadcasting at the Ministry of Communications. The operators and regulators in other broadcasting areas are The Israel Broadcasting Authority at the P.M. Office (Public Radio and Television Broadcasting); the Second Authority for Television and Radio was transferred from the Ministry of Education to the Ministry of Communications.

The Second Authority is in charge of commercial providers; the second TV Channel with three content providers licensed; a news company; and 13 regional radio stations.

Following a process of consolidation there are now three main cable TV providers: Aruzei Zahav, Matab and Tevel. Aruzei Zahav and Tevel hold two thirds of the holdings of the leading Internet provider in Israel, Netvision. The Noga Tikshoret company is the local content provider contracted by the three companies to fill their obligations concerning local production.

DBS services are began to to be offered in June 2000 by a DBS company (YES) which recently received license to operate; it will use the services of the Israeli satellite Amos-1, the Israel geo-stationary satellite which began commercial operations in June, 1996.

The Board of Directors of Bezeq approved the nomination of Ilan Biran as the general director of the corporation. Biran, 53 years old, served in senior positions at the Israel Defense Forces - hed of the Division of Technology and Logistics; head of the Operational Division at the IDF at the General HQ and other functions. Lately he served as the general director of the Ministry of Defense. He substitutes as CEO of the Bezeq Ami Arel who is going to direct the Elron corporation.

The main challenges Biran is expected to met at the Bezeq is the adaptation to the competitive environment created with the opening of the telecommunications market since July and the preparing the company for the privatization process. (October, 1999)

Lawyer Yossi Abadi resigned from his post as director of the Directorate for Public Broadcasting at the Ministry of Communications. He and Zvi Hauser, the former chairman of the Directorate worked to advance the liberalisation of the telecommunications market; Hauser resigned two months ago in the wake of disagreement with the new minister, Benyamin Ben-Eliezer (Fuad). Yossi Abadi is joining the Law Office of Ram Caspi where he is establishing a department dedicated to the legal aspects of the telecommunications market.

Minister of Communications, Benyamin Ben-Eliezer (Fuad) nominated the lawyer Dorit Inbar as the Chairman of the Council for Satellite and Cable TV in place of Zvi Hauser which resigned. Inbar was associated in the Law Office of Shavit-Braun-Inbar and specialized in matters concerning business mergers.

David Moshevitz, the new chairman of the New Fund for Cinema and Television. He will substitute Moshe Gavish that is leaving the direction of the fund after 5 years. Gavish said that the purpose of the fund is to improve the quality of the Israeli cinema by choosing projects to be supported and to encourage young cinema creators. About 200 films were supported in the last 5 years, 12% of the requests to the Fund. The complex process of selection has been successful and many of the supported projects receive prizes and credits at international festivals. David Moshevitz, former owner of the Elite Company, was in the years 1992-95 chairman of the Israeli Institute for Cinema. Since 1996 he is a partner in a Law Office and deals with documentary cinema.

The Prime Minister, Ehud Barak intervened in the conflict between the Ministry of Finances and the Ministry of Communications regarding the extension of the Cable TV concessions and the licensing of the new Internet broadband services. He decided that the Legal Counsel to the Government, Eliakim Rubenstein should provide an adequate solution avoiding a tender and providing adequate compensation. The key officers involved are: Adv. Davida Lahman-Messer, the Vice Legal Consel to the Government that represents the Ministry of Justice in the discussions with the Ministry of Communications; the legal counsel for the Ministry of Finances is Adv. Yamima Mazuz. The main decision in this matter was taken by the Council for Cable and Satellite Broadcasting, headed by Adv. Adv. Dorit Inbar. The legal council for the Ministry of Communications is Adv. Izhar Tal.

The Minister of Justice, Yossi Beilin resigned from the Committee established by the Cabinet to provide a solution for illegal radio broadcasts. He explained it on the unwillingness of the Shas Party to settle in a way to enable the publication of tenders. The Shas Party, one of the main beneficiaires of illegal brodcasting radion stations is a political party - orthodox religious, non-Zionist, with a constitutency of oriental Jews and the third largest representation in the Parliament (17 M.K.s).

M.K. Eli Goldsmidth, chair of the Finances Committee of the Parliament said that a condition for the approval of the Broadcasting Authority budget is the allocation of a larger share for local content production. The chairman of the Association of Cinema Directors, Uri Inbar, was among the leaders of the manifestations demanding that the Cable TV companies comply with the clauses in their licenses regarding local content production; they protested in front of the offices of Eliezer Fishman one of the largest interest holders in Cable TV and other advanced communications media. M.K. Israel Katz was demanded 40% of local productions in the proceeding approving the new commercial channel (Channel 3).

Raphael Vardi, nominated by the Prime Minister Barak to investigate the situation of the Broadcasting Authority presented his report. The report demand the substitution of all the directors as soon as possible including the director of the Authority, Uri Porat; the Chairman of the Board, Gil Samsonov; the director of the television, Yair Stern; the director of the radio, Amnon nadav. Yair Stern already resigned and received the task of preparing the tender for the new commercial channel, Channel 3.

The directors of the corporations concessionaires of the commercial Second Channel are Yohanan Tzeng (Reshet); Uzi Peled (Telad); and Uri Shinar (Keshet). They expressed their opposition to the establishment of the new commercial channel, Channel 3, saying that the Israeli publicity market is unable to maintain two commercial channels.

Avraham Burg, the chairman of the Parliament and Prof. Arnon Zuckerman announced they were against the new commercial channel preferring a public broadcasting channel like the British, Channel Four.

The competition for subscribers among the three international calls intensified: Barak (director, Eyal Arad); Bezeq Beinleumi (director Uri Yogev); Kavei Zahav.

The ammendment to the Telecommunications (Bezeq) Law that will enable the concession of licenses to the Cable TV corporations to provide telephony, broadband Internet access and other communications services will include a provision on the body which will determine the value of the license. It seems that only a foreign arbiter may be acceptable; to find an impartial Israeli CPA Office or Economic Consulting company may be an impossible mission. The three cable companies are controlled by three of the central holding corporations in Israel. Any Israeli candidate as arbiter most certainly has business relations to one of the hundreds of companies related to the families Nimrodi, Recanati, Denkner and Moses. Prof. Haim Ben-Shachar and Prof. Ytzhak Souari were among the Israeli names suggested but both said they will not be able to carry out this job (Haaretz, June 15 2000, page C2).

There are about 100 licenses provided by the Ministry of Communications for Internet Services Providers; the director of the Ministry said that the Israeli market seems to have place for 30 such operators - this is the number of active ISPs available at any given time in the last year. The leading ISPs are Netvision; Bezeq Beinleumi and Internet Zahav

Bezeq Beinleumi has acquired the main Israeli portal, Walla. This acquisition is being examined by the Anti Trust Authority Commissioner. Other important Israeli portals are Tapuz and IOL (Israel On-Line), the last a service of the Haaretz newspaper.

The Internet in Israel was restricted to the academy until 1993 when a gradual process of opening to additional users was started. An inter ministerial committee allocated licenses for users from the R&D Industrial community and educational or non-profit institutions; four ISP were then licensed and two actually provided services. Since 1995 the use has been liberalised and there are a growing number of providers.

While an academic network (ILAN Israeli Academic Network) the main tasks needed for the smooth operation of the Internet were carried out by MACHBA - IUCC The InterUniversity Computer Center. This is a non-profit corporation composed by the Computer Centres from the Universities in Israel. With the liberalisation functions like IP numbers allocation and domain name registration were transferred by the IUCC to the Israel Internet Association.

The Israel Internet Association grew up from the voluntary activities carried out during the process of transformation the Internet in Israel from an academic into a public network. From the seminars and conferences for the diffusion of the Internet it evolved into a central piece of the Israeli Internet scene. In addition to IP number allocation and domain name registration under IL the association is the Israeli Chapter of the Internet Society and manages the IIX, the Israeli Internet eXchange. The IIX is the central meeting point of the ISPs in Israel; its purpose being to route all intra-Israel Internet traffic, among the operators as efficiently as possible. The association is also the body responsible for the ccTLD Israel and it is the provider of domain name registration services in Israel.

The Israel Internet Association maintains the international relations needed for the Internet community in Israel: with RIPE; TERENA; the Internet Society, the W3C Consortium; ICANN; The European Coordination Committee of the Internet Society; the EUROMED Net initiative of the European Commission and more. The association is an independent non-profit corporation.

In the wake of the vandals attack on central sites in the US and the planned Hackers Congress in Israel the Science and Technology committee of the Knesset (Parliament) under the chaimanship of M.K. Anat Maor had hearings concerning network security. Appeared in the committee the director of the Unit in the Prime Minister Office in charge of Supervision and Defense of Sensitive Information, Igal Betzer and the president of the Israel Internet Association, Doron Shikmoni. M.K. Maor complained on the lack of cooperation with the committee on Online Defense headed by Gideon Sheffer.

A recent survey by Gallup indicates that 29% of the households in Israel are connected to the Internet. This is an 23% increase since December 1999. The survey was carried out in June among a sample of 1,200 users. The mean time spent in the network is rising and is now 10 hours weekly compared to 7.9 hours in 1998 and 9.5 hours in 1999. The main portals are Walla (visited by 46% of the users); Yahoo (21%) and Nana (21%). The main Internet providers are Internet Zahav and Netvision each with 33% of the private market. The remaining main ISPs are: Internet Bezeq Beinleumi (14.2%); BezeqNet (7.2%) and Barak Online (5.6%). (From Haaretz, July 17, page C8).

Israel Manufacturer’s Association: This is the umbrella association for the Israeli industry and it plays an important role in association with the Ministry of Trade and Commerce in setting the policy for Electronic Commerce; in the area of Tourism; in the introduction of EDI in Israel and more. Affiliated institutions are MATIMOP The Israeli Industry R&D Center; The Association of Software Houses in Israel; The Electronics Industries Association and more.

ILA - The Israeli Information Technology Association is the professional organisation of the computer professionals and the computer industry in Israel. It maintains several SIG in areas like Quality Assurance in Information Technologies; IT Security; Data Warehouses; Assimilation of Information Systems in the Organisation; Intelligent Cards; Y2K; ERP; CRM; Computer Communications. There are several independent associated organizations focused in special areas like computers in education, telemedicine, Internet, Unix and more. In cooperation with these associated institutions there are SIG in areas like telemedicine, Intranet, Training through the Internet, Electronic Commerce and more. ILA publishes a regular newsletter and has an annual conference; last year the conference has an international character and has taken place in cooperation with Telecom '98.

MOAH - The Israeli Association for Computers in Education, specialised association affiliated to ILA . It is the professional association of educators, trainers and industry involved with computer applications in education. It maintains a regular publication, an annual conference and periodic seminars.

AMIX - Specialised association affiliated with ILA associating Unix developers in Israel;

The Israeli Association for Information Systems in Medicine - Specialised association affiliated with ILA that congregates the professionals in the area of Information Technologies in Medicine including telemedicine, EIS, HIS, DSS, Medical Databases and more.

ITA - Israeli Teleworking Association was established in 1998 to promote home and cottage teleworking in Israel. It has established a Web site and prepared several background documents.

The Israel Chamber of Commerce Association: The association has played an important role in the development of use of credit cards in Israel and in the area of electronic commerce. It established in association with the Israeli Export Institute the Israeli Forum for Electronic Commerce.

The Israel Lottery: Plays an important role in the budget of the Local Authorities in Israel which actually manage the Lottery. It supports the computerisation of the educational system program (a third o the budget); lately it has initiated a large Digital Library project.

The Association of Local Authorities in Israel: The local authorities contribute with a third of the budget for the computerisation of the educational system in Israel; through its Data Mechanisation Company it is active in the introduction of Internet based projects and programs in the municipal government in Israel; many of the local authorities information services, Web based, that were lately established in Israel have been contracted to the IT Company owned by the association.

The new chairman of the association of the corporations that use publicity services is Oran Muskat. The other members of the council are Doron Adamati (MATAV Cable TV); Ofer Bloch (Tnuva); Arieh Golan (Dapei Zahav); Eli Gidor (ICE); Michal Harel (Ossem); Rony Weinstein (Visotzky); Oren Zilbershatz (Internet Gold); Iris Zisso (General Health Services); Bezalel Livne (Diners); Carmi Levinstein (Carmel Mizrahi); Eli Meiron (SuperSal); Eliezer Rabin (Elite Insurance);

An Electronic Commerce forum was established by the director general of the Ministry of Trade and Industry in cooperation with the Israel Industries Association to set policy in this area. Other institutions relevant is the Israeli Electronic Commerce Forum established by the Israeli Chambers of Commerce association and the Export Institute. The Supervisor of the Banks also plays an important role in this area.

Several corporations have begun to offer Merchant services for corporations interested in using electronic commerce channels in the Internet

The Export Institute, a non profint institution under the sponsorship of the Ministry of Trade and Industry, decided to establish a comprehensive Web site for Electronic Commerce announced its director Amir Haiek; the chairman of the Institute, Amir Makov, is heading a committee to examine proposals of business interested in taking part in this initiative.

Yithak Tal, the Supervisor of the Banks in the Israel Bank announced that it has licensed two banks to provide full money transactions throught the Internet. The banks are Investec Clali (vice director Shuki Oren) and Bank Hapoalim. The officer at the office of the Supervisor in charge of Internet related matters is Gad Marx.

The Internet Marketing Committee of the Israeli Association of Advertisers announced its intention to establish a monitoring system regarding the publicity value of Internet sites in Israel announced Yair Feldman, director of the association. No such service is presently available for planning of publicity campaigns. (Haaretz, 9.11.2000, C7).

The chairman of the Association of Travel Agents, Mussik Brickman, stated he is not worried about the use of the Internet for tourism transactions. In contrast the director general of the Association, Yossi Fatael said that the agencies should adapt to become travel consultants and get paid for it as the margins for selling tickets will become a much smaller share of their input. The director of the tourism company Natour , Mior Caspi, asked El-Al, the Israeli national airline, not to sell directly to the consumers its tickets using the Internet. The vice director of El Al for commerce, Uri Sirkis, announced that the company is completing the installation of a new system for selling its tickets through the Internet.

A new company, Diamonds and Jewellery View, has developed a technology enabling the examination of diamonds through the Internet.. The chairman is Igal Hoisman, who heads the Association of Diamond Industry. His partners are Lev Levaiev, Shechter-Nemdar Corporation, Shnitzer Corporation and the funds Ipax-Leumi and Warburg-Pincus, the investor Wolfsohn Morris.

WebLife established a Virtual Mall for small businesses. The Sakal Online company was launched by the owners of the large duty free corporation headed by the Sakal brothers, Soli (General Manager) and Meir Sakal. The initiative was well received by its competitors, Best Buy (Director, Ido Mazurski) and the online sales site 522 (Directors - Dan Regev and Arieh Rothenberg; owned by Kesher Barel, Zadick Bino, Ipax and Barak). The largest corporations in the area of E-Commerce are NetAuction (owned by Netvision) and 4Sale (owned by Art-Inn). The director of the company DSL, Amichai Ben Dor, announced an e-commerce initiative, joint venture witht the Sagi corporation. SuperPharm (director Lior Raitblat ) decided to invest on 20% of the ownership of the Virtual Mall of Internet Zahav (Director David Bikovski). Polis-Net and Go-Next announced agreement to offer insurance policies through the Wap Web server to Cellular phone users (Chairmand and Director of Hachsharat Haishuv Insurance, Ron Weissberg). The Postal Authority announced it will enter the area of Electronic Commerce offering services like storage and distribution of merchandise and establishing a virtual mall in partnership with private corporations announced its director, Dan Nadiv.The director, Michael Ben Ami of the Hamer-Cyte corporation for art dealing in the Internet announced good results in its first auction.

The businesman Benny Gaon and his Arab partner have almost entirely completed the establishment of an Arab portal that will start broadcasting in a month to the Arab countries. Gaon invested almost 2 million dollars in the portal which will compete with the leading Arab portal, Planet Arabia (the Arab Star). Gaon’s portal which will be called Away (http://www.away.com) has contracted with Reuters to receive news. The portal will be established in an Arab country said Gur Holzman, the general manager of Genius Technology, the company in which Gaon has a 54% share and which is establishing the Portal. An advantage for the portal is its use of a virtual Arabic keyboard that appears on the screeen independently from the user’s computer operating system. This way anyuser can send email Arabic messages from any computer without any addiional adaptations. The other partners in Genius (Gaon) Technologies are Sami Katsav (20%); Magor Holdings (Oded Ronen) (13%); and the Oz Atid (Danael Manpower, Yehuda Adir) (13%). (Haaretz, June 28 2000, page C7).