Israel telecoms sector revs grow 5.4 pct in 2007

JERUSALEM, Aug 20 (Reuters) - Israel's telecommunications sector posted growth of 5.4 percent in 2007, with revenues rising to 28.1 billion shekels ($7.9 billion), Israel's Communications Ministry said on Wednesday.

The ministry said most of the growth came from a 20 percent rise to nearly 1 billion shekels in Internet revenues from the two companies that provide Internet infrastructure -- Bezeq Israel Telecom (BEZQ.TA) via Digital Subscriber Line (DSL) and HOT (HOT.TA) through cable lines.

Revenues at Israel's Internet service providers (ISPs) grew revenues by 14 percent last year, the ministry said.

Mobile phone companies, which now represent more than 50 percent of total revenues in the telecoms sector, grew by 8 percent to 15.5 billion shekels.

Israel has three main mobile operators led by Cellcom (CEL.N) (CEL.TA), Partner Communications (PTNR.O) (PTNR.TA) and Bezeq unit Pelephone.

Revenues in the domestic landline sector dominated by Bezeq but with recent competition from HOT edged up to 4.40 billion shekels from 4.36 billion shekels, the ministry said.

International calling revenues dropped 7 percent in 2007.

($1 = 3.57 shekels)

(Reporting by Steven Scheer; editing by Elaine Hardcastle)