> What is "spam-proof etc hosting"?

This means we neither send nor allow spam from or to our servers. 
 
> How do you guarantee that the email will all stay inside 
> Israel?  The nature of the internet is that something.com may 
> be anywhere...and even if you were to limit them to addresses 
> ending in .il, that doesn't mean the mail will stay inside Israel.

This is a problem.
Even while sending to Israelis only, he will actually send to Yahoo, Gmail
and Hotmail.
Someone in private adviced me, as a part of solution, to make agreements
with such a sites, so they would allow large volumes from us.
I don't see for now how could I achieve this.
 
> I can legally sell a list of addresses.  That doesn't mean 
> when you start spamming them, the recipients won't respond 
> appropriately.

Point taken.
Right now I think how to build/get subscribers DB.
 
> He's going to build a new data center for spamming Israelis?  
> That seems unlikely.

He is.
AFAIK, the communication office wants to legitimize several such providers,
and crush down on other spammers.

> I suggest you watch this video.
> 
> http://69box.atlantic.net/daily/scott_richter_on_dailyshow_033
02004.wmv

Hard to argue...
----------------------------------------------------------------------
  Jon Lewis                   |  I route
  Senior Network Engineer     |  therefore you are
  Atlantic Net                |
_________ http://www.lewis.org/~jlewis/pgp for PGP public key_________


Thanks
Arthur