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June 20, 2008 | 6:17 am
Posted by Adam Wills

According to David Shamah’s analysis in the JPost, there are no clear-cut reasons why the 3G iPhone won’t be available in Israel.
His main thought is that it’s a money issue—basically, the phone will undercut competitors regarding initial price and then sock it to consumers with high service plan costs.
Shamah looks to cost for Orange, the country’s primary cell provider. Compared to the the Nokia n95 (NIS 3,205) and the Blackberry Curve 8310 (NIS 4,294), the 3G iPhone’s (U.S. subsidized price) of $199 would make it significantly cheaper at NIS 805, which might cut into overall profits. Then factor in that the 3G iPhone service plan makes it more expensive than its previous incarnation, according to Consumerist.
Also, Israel isn’t alone in not getting the 3G. Other high-tech countries that won’t be in the club include South Korea, China, Dubai, the UAE and Russia.
Shamah’s recommendation: Israelis should buy the second-generation iPhones at second-hand prices from Americans who upgraded to the 3G and then unlock them in the Jewish State.
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Here’s the answer
http://nakedisraeli.wordpress.com/2008/06/27/israelis-asking-where-is-the-iphone/