Bahrain Telecom News

 

Bahrain Telecom mulling acquisitions up to $4 billion (October 30, 2007)

 

MANAMA (Reuters) - Bahrain Telecommunications Co. (Batelco), facing growing competition at home, said on Monday it would spend up to $4 billion to expand abroad.

 

Batelco would buy telecom operators rather than bidding for licenses, Chief Executive Officer Peter Kaliaropoulos told reporters in Manama.

 

"Our preference is for big acquisitions ...about $2 to $4 billion to buy companies of the size of Batelco," Kaliaropoulos told reporters.

 

"There are not many licenses being offered in the Middle East," he added. "If you are going to grow you have no option but to acquire existing operations."

 

Bahrain opened up its telecommunications market to competition in 2004, but Batelco retains a monopoly on fixed lines, Internet and datacomm services in the kingdom.

 

Batelco's profit jumped 11.8 percent to 25.91 million dinars in the third quarter 2007, its second-biggest profit ever.

 

Batelco makes 90 percent of its profit in Bahrain, Kaliaropoulos said. "That will fall over time," he said.

 

The profitability of the Bahrain business would decline in the next few years, he said, without being more specific.

 

Third-quarter revenue climbed 20.4 percent to 76.8 million dinars, Batelco said. Profit from affiliates was 534,000 dinars, compared with nothing in the year-earlier period, it said.

 

Batelco has come under increasing pressure from Bahrain's telecom watchdog to allow competitors to use its infrastructure to provide services, encouraging it to look overseas for growth.

 

Batelco, India roaming deal (From ameinfo.com, October 23, 2006)

 

- Batelco has signed a bilateral commercial international roaming agreement with Bharat Sanchar Nigam in India. BSNL Telecom operates a GSM 900 service with a handset display of CellOne A&N. Batelco's mobile customers will be automatically connected to the service upon arrival in the country; the service went live on October 16.

 

Record $186 million profit for Batelco (From TradeArabia News Service, October 11, 2006)

 

Manama - Batelco, Bahrain’s leading telecommunication provider, has announced record results for the nine months of 2006, posting a net profit of BD70.6 million ($186.8 million) on a turnover of BD170.1 million ($450 million).

 

The results showed an increase in group net profit of 8.3 per cent for the comparable period last year with operating profits showing an even stronger improvement to 13 per cent. Growth in net revenues was 8.2 per cent over the same period, the newly appointed chairman, Shaikh Hamad bin Abdullah bin Mohammed Al Khalifa, told a board meeting.

 

Data, internet and mobiles services revenues contributed to growth whilst international call revenues declined as a result of fierce price competition from VoIP calling cards with lower quality, prepaid services.

 

Operating expenditure has been tightly managed and earnings per share have risen to 59 fils, a 9.2 per cent increase.

 

Shaikh Hamad said he is pleased to lead a successful company with an international reputation.

 

Batelco has been facing many competitive and regulatory challenges and will continue to do so. However, it has a strong and experienced team driving the business to new levels of performance.”

 

“We have completed 25 years and are recognized as the leaders in telecommunications, not only in the Kingdom of Bahrain but also the region. I am confident that the dedication and hard work of all the Batelco employees will only further strengthen our position,” he added.

 

Batelco’s CEO Peter Kaliaropoulos said the results reflect the implementation of the “Peak Performance” strategy approved by the board in December 2005.

 

“In the most competitive market in the Middle East, we remain focused on improving our customers’ experience. We have introduced new innovative mobile technology such as Blackberry and i-Teq X-Bond (the first Microsoft based PDA mobile with television in the Middle East), new content for mobiles including MMS (Multimedia Message Service) and Batelco Connect (offering the latest news updated every 4 hours), lower prices for residential and business broadband services and many new pricing plans for mobiles and broadband.”

 

“Additionally our IDD pre-paid card rates are amongst the lowest in the Kingdom,” said Kaliaropoulos.

 

Batelco is currently in the process of migrating all Batelco services to the next generation network (NGN) infrastructure. Once complete, Bahrain’s residential and business customers will enjoy the benefits of state-of-the-art integrated communications services that are on a par with the best the world has to offer.

 

Batelco’s network strategy is to create a data centric network capable of supporting data voice and multimedia services competitively,” added Kaliaropoulos.

 

Batelco recently introduced a BD10 Broadband Package, the most affordable across the GCC. “We are growing broadband penetration for the first time in 3 years. We want to transform Bahrain to be a regional leader for broadband services and the most attractive destination for businesses to locate their call and data centers in the GCC,” he added.

 

Batelco not only has been launching more products and introducing lower prices but also making it more convenient for customers to buy such services. Batelco mobile and prepaid cards are now available from thousands of stores including 16 Batelco branded shops. Customers can also top-up electronically. Business clients can benefit from the dedicated service of account managers who offer complete solutions to their complex ICT needs.

 

Batelco’s strategic priorities also involve expansion into new markets and managing costs better based on benchmarking operational effectiveness.

 

“Our acquisition of Umniah is another milestone to achieving growth. It gives us access to 6 million people in Jordan and allows us to improve economies of scale in our mobile business,” Kaliaropoulos added.

 

“We have managed to improve our results by focusing on the fundamentals” stressed Batelco’s CEO.

 

“Better products and services, innovation, lower prices and more convenient ways to purchase services. We are focused on retaining our customers’ loyalty. By reducing operational costs, introducing more innovation and expanding in new markets, we will continue to deliver more benefits to our customers and in turn, our shareholders. Our customers’ support and our employees efforts are critical ingredients for long term success,” he said.

 

Batelco, as an employer of 1,600 people in Bahrain has also focused on its social and humanitarian obligations. Batelco has always supported various needy causes with the help of different voluntary organizations and charity funds in Bahrain. So far this year, the company has donated more than BD1 million in charitable aid designed to help those who need it most, said Kaliaropoulos.

 

MTC-Vodafone 3.5G service 'a big success' (From Gulf Daily News, August 3, 2006)

 

MANAMA - Mobile Telecommunications Company (MTC) Group announced that it has successfully offered nation-wide HSPDA (3.5G) service in Bahrain through its subsidiary, MTC Bahrain.

 

This technology is the fastest wireless broadband access technology using mobile phones, it said in a statement.

 

MTC Group said HSPDA service dramatically increases the data by up to five times that of existing 3G networks, and 15 times that of GPRS networks, with data rates of up to 1.8 M bits per second.

 

MTC-Vodafone, Bahrain, chief operating officer Mahmoud Hashish said that by providing this service, MTC has become one of the mobile telecommunications icons worldwide.

 

Mr Hashish said MTC Bahrain always strove to provide and acquire the most advanced technology to serve its vision to be a highly developed company with distinguished and efficient products meeting the needs and aspirations of customers in terms of mobile telecommunications and wireless technologies.

 

"This service strengthens our position as market leaders in innovation and bringing new technologies," he said.

 

"In addition, it will immediately impact mobile Internet users who have the need to access the Internet at high speeds (broadband) as they are continuously on the move with their laptops.

 

"The launch and provisioning of nation-wide commercial HSDPA (3.5 G) service throughout Bahrain reaffirms the company's innovation leadership by providing our customers the latest mobile technology in global high-tech services.

 

"We are proud that MTC-Vodafone is now among the first telecom operators in the world to provide high-speed multimedia mobile services beyond 3rd generation."

 

Batelco third quarter profit manages a marginal rise (From Gulf News, October 21, 2005)

 

Manama - Bahrain Telecommunications Company (Batelco) reported a marginal rise in third quarter profits, pushed by an increase in gross revenue.

 

Profits rose to 65.2 million Bahraini dinars from 64.7 million dinars for the same period last year, marking a 1 per cent increase that was led by both domestic and regional markets, the company said yesterday.

 

"Batelco's efforts are being translated into the infrastructure of the local economy by encouraging local and international investors to come to Bahrain. Our focus on growth, coupled with our full support of various sectors with advanced telecommunication and IT solutions, are the keys to our success," Batelco chairman Hassan Juma said.

Chief executive Peter Kaliaropoulos said Batelco would continue with a major transformation to improve customer satisfaction. It will also introduce new products and services such as 123CALL and Home Delivery.

 

"The challenge of an increasing competitive environment with the presence of 39 telecommunication licensed service providers in Bahrain alone, the company's reaction to the competition is to strive to improve overall value for service."

 

This year alone we have allocated 17 million dinars to enhance mobile coverage, vitally important when more than 10 million phone calls are currently being handled every day," Kaliaropoulos said.

 

MTC-Vodafone achieves a milestone (From Gulf News, December 12, 2004)

 

Manama - MTC-Vodafone (Bahrain), the country's second mobile phone service provider, announced yesterday that it has reached a milestone 100,000 customers. To celebrate the occasion, the company will give its subscribers a 50 per cent discount on all local calls on December 17.

 

MTC-Vodafone (Bah-rain) began operations on December 15, 2003. Throughout its first year, "we have built up a good customer base and firmly established the brand," said Dr. Sa'ad Al Barrak, chief executive officer.

 

"MTC-Vodafone has positioned itself as the provider of choice and innovative mobile telephony for Bahrain's market. We provide the latest in mobile technology through our 3G/EDGE/GPRS and GSM technology-based network, excellent customer support, a wide retail distribution chain across the kingdom and an innovative suite of products and services," he said.

 

Al Barrak said MTC-Vodafone (Bahrain) will continue to provide excellent quality and choice to mobile phone users, "and to make its services available to more and more customers in the kingdom."

 

Batelco signs major deal with Iran telecom firm (From Gulf Daily News, December 2, 2004)

 

MANAMA - Batelco signed a new multi-million dollar three-year agreement with Iranian IT and telecoms service provider ADA (Asre Danish Afraz) to co-manage high speed, global IP services for a major Iranian client.

 

Batelco's services will provide the organization with a virtual private network (VPN), which connects more than 50 worldwide sites via a dedicated network infrastructure.

 

Under the terms of the agreement, Batelco will provide and manage the global connectivity via its high-tech new IP-VPN services, while ADA handles the network services within Iran.

 

"Batelco's IP-VPN services are worldclass state-of-the-art offerings that can provide customers with high-quality connectivity designed to fulfil a wide range of business communications requirements," said Batelco chief executive Tony Hart.

 

"In this case, we will be linking the head office in Tehran to locations in countries all across the globe, from France to Malaysia, China to Canada and Bahrain to Japan."

 

Batelco's ongoing working relationship with global network operator Cable & Wireless provides the company and its customers with huge global reach via one of the world's most advanced networks.

 

"We have worked closely with both Cable & Wireless and with our partners in Iran, Asre Danish Afraz, to provide the client with exactly what they need in terms of information and communications solutions, including global connectivity," said Mr Hart.

 

"Major service providers from around the world participated in the tender process for this project, and Batelco's success proves that we are more than capable of competing amongst the world's telecommunications leaders in providing a global service to our existing and potential customers."

 

Batelco's MPLS (Multi Protocol Label Switching) based IP-VPN allows organizations to build a communications system that acts like an extension of their private corporate network, but has all the benefits of being run on Batelco's private network infrastructure.

 

The result is a fast and efficient means of making scattered places seem like local sites, from workers' homes to branch offices.

 

New Bahrain draft set to regulate telecom mergers (From Gulf Daily News, August 30, 2004)

 

MANAMA - A new regulation governing mergers and acquisitions in the Bahrain telecom sector is now in the final stages of being drawn up.

 

A revised draft of the regulation has been published by the Telecommunications Regulatory Authority (TRA) and will be open to comment until September 12.

 

It has already been updated once following a public consultation that ended on July 18.

 

The regulation will govern the way operators expand their business, develop synergies and gain in terms of economic efficiencies when it is completed, according to a TRA statement.

 

The proposed regulation will be the basis upon which the TRA will analyze such transactions to ensure they do not have a negative impact on the market.

 

"The Authority, through its usual public consultation process, is seeking views on this draft regulation prior to adopting it so that it can take into account possible concerns that interested parties may have," said TRA general director Andreas Avgousti.

 

"The TRA aims to adopt clear and effective regulations that provide investors, current and potential operators as well as the community as a whole with a clear understanding of their rights and obligations as to allow them to make informed business decisions."

 

Interested parties have until September 12 to comment on the revised draft.

 

The contents of the consultation document can be viewed on the TRA's website at www.tra.org.bh

 

The final regulation, as well as a report that highlights any changes from the draft regulation, will be announced by the TRA.

 

Bahraini Telecom services interrupted (From Khaleej Times, August 24, 2004)

 

- Around 10 to 12 per cent of the Batelco mobile and other networks were interrupted for several hours yesterday due to the power failure, even as the other operator in the Kingdom, MTC-Vodafone, said some of its customers may also have been inconvenienced as a result of the outage.


Till the time of going to the Press, the entire Khamis fixed line telephone exchange was also down, with no land lines starting with the numbers 17-40 being accessible.

 

"The networks and other systems of Batelco were running smoothly in the early hours of the day, but later in the afternoon there were some faults," Batelco Head of the Corporate Affairs, Ahmed Janahi, said.

 

"The mobile and fixed lines networks were interrupted due to the lack of electricity in the sub-stations and this continued until evening. The faults in fixed line networks were mainly in Khamis, Hamad Town and some other areas."


Janahi said that at the time of power failure in the morning, the sub-stations were automatically running on batteries. But when the batteries ran out of charge the sub-stations stopped functioning.
He said teams from Batelco immediately went to the faulty sub-stations to recharge the batteries with generators.

 

Apologizing to all Batelco customers, Janahi added that the other reason for the network failure was the load on the system by customers' calls.


Meanwhile, a spokesperson for MTC-Vodafone (Bahrain) said they believed that some of their customers may have faced intermittent network interruptions. "We would like to apologize for any inconvenience they may have subsequently encountered as a result."

 

The spokesperson said they wished to assure their customers that all possible measures have been taken to ensure their continuous high level of services.

 

"We would like to thank all of our customers and residents of Bahrain for their patience and understanding during this unforeseen circumstance."

 

Vodafone plans new services (From Gulf Daily News, July 27, 2004)

 

MANAMA - MTC-Vodafone Bahrain has signed a memorandum of understanding (MoU) with Bahrain Call to provide information technology to mobile customers in the kingdom. Bahrain Call will introduce audio text services, interactive and/or recorded announcement information and entertainment services for MTC-Vodafone mobile customers in Bahrain.

 

This means MTC-Vodafone customers will be able to participate in services such as TV competitions using the 900 numbers.

 

It will also enable MTC-Vodafone users to send messages (SMS) from a mobile device to a database and get information in return, such as ring tones, information services and jokes.

 

The agreement coincides with the launch of the new corporate identity Mobile Telecom Group (MTG), formerly known as Call Group International.

 

The new company will move deeper into providing more of mobile, technology solutions and services, along with its other activities, such as Bahrain Call.

 

"Call Group International is a company that contributes to and is a part of the community," said Bahrain Call general manager Hamed Al Hamadi.

 

"We are investing over BD12 million to provide the latest value-added services for mass-market mobile phones and landlines within Bahrain through different communication channels and best practices."

 

MTC-Vodafone chief operating officer Khalid Al Farkh said the agreement would give our customers a wider range of choice.

 

"We are very pleased to be part of this agreement, MTG is a well-established and diversified group in the region that has experienced great success and growth," said Mr Al Farkh.

 

Also at the signing, held at the MTC-Vodafone headquarters in Seef District, were MTG chief executive officer Ammar Sharaf and regional business development manager Mohammed Barakat.

 

GPRS, MMS roaming services for Batelco, Wataniya customers (From Bahrain Tribune, July 8, 2004)

 

- Bahrain Telecommunications Company (Batelco) and Wataniya Telecom of Kuwait have teamed up to become the first GSM operators in their markets to offer full GPRS and MMS access for each network's customers while roaming in Bahrain or Kuwait.

 

The introduction of GPRS and MMS roaming signifies the commitment both operators have made to continue delivering value services to their customers.

 

"Bahrain is witnessing dynamic growth thanks to the recent liberalization of its telecom sector, and this has pumped new energy into the market while driving a renewed approach to service excellence and customer satisfaction," said Tony Hart, Batelco chief executive. "The company has anticipated this vibrant change and is committed to ensuring that it stays at the forefront of service and technology development so that its customers will continue to receive world-class services both at home and now in Kuwait.

 

We are pleased to offer this service with Wataniya Telecom and will continue to build on this positive momentum moving forward. The roaming service started on June 15 on a free trial basis for a limited period of time."

 

The roaming agreement allows both Batelco and Wataniya customers to access their GPRS and MMS services when roaming in either country. Services accessible by Batelco customers while roaming in Kuwait include services ranging from Internet and e-mail access to MMS. Wataniya Telecom's customers can similarly access Wataniya's full range of action services including Internet, e-mail access, MMS and premium content.

 

Bahrain advances again with first fully competitive regional telecoms market (June 30, 2004)

 

(MENAFN) - The Telecommunications Regulatory Authority (TRA) today announced that Bahrain's telecommunications market will be fully open to competition with the availability of local and international fixed voice and data services licenses on 1 July 2004.

This marks the creation of the first fully liberalized telecoms market in the region and reflects significant progress in Bahrain's ongoing efforts to liberalize the national economy and set the grounds for the further attraction of investment and business interests to the Kingdom.

Commenting on the occasion, Mr. A. Andreas Avgousti, General Director of the TRA said, "This is an exciting time for Bahrain's telecommunications industry and subscribers throughout the Kingdom as we see Bahrain advance to the forefront of the regional telecoms markets.

Bahrain has already begun to witness the benefits of competition by way of greater value for consumers and investment in the national economy and full market liberalization is expected to enhance these gains. Supported by the vision of its leadership, the Kingdom's telecoms market stands ready to provide optimal opportunities for regional and international investors and operators alike."

Efforts to liberalize the market began in October 2002 with the passing of the Kingdom's Telecommunications Law and Bahrain has since put in place an environment conducive to the attraction of investment and capable of supporting multiple operators.

The Kingdom has long been recognized as a regional leader in terms of its regulatory infrastructure and its telecommunications sector is no exception. The Kingdom's telecommunications sector, much like its renowned financial services industry, is characterized by a world-class regulatory structure on par with that of any fully developed international market.

In total, Bahrain's telecoms sector is now comprised of some nine operating segments, for which licenses have become available over the past 18 months. Currently, the TRA is awarding licenses in eight of these areas as follows: National Fixed Service Licenses; International Service Licenses; Internet Service Provider (ISP) Licenses; Value Added Services (VAS) Licenses; International Facilities Licenses and; Licenses in the further radio based areas of VSAT, Paging and PAMR.

With the exception of mobile, an area which will see only two operators until at least 2005 following the granting of the second mobile license in April 2003, there are no limitations on the number of licenses to be awarded in each area. In addition, operators may opt to utilize licenses for the provision of services to specific market segments. For example, they can combine or bundle one or more products or services to meet sector- specific needs such as those in financial services, e-learning or healthcare, to name but a few.

Further, the licensing application process and fees have been established with an eye toward encouraging participation in the sector, where growing consumer demand is coupled with the ever increasing needs of Bahrain's business community characterized by more than 460 financial institutions, numerous large-scale real estate and tourism projects and the planned $US 2 billion Bahrain Financial Harbor.

Mr. Andreas Avgousti continued, “We are proud to become the first telecoms market in the region to be fully open for competition. In reaching this important milestone, the Authority has worked diligently to lay the foundation for the region's most dynamic, competitive and well-regulated marketplace. Based on the principles of transparency and accountability, we have established a framework that provides both current and future market operators and subscribers with clear rights, obligations and long-term visibility.

We are confident these efforts will see the promised benefits of competition effectively delivered to Bahrain and position investors and market operators to thrive and capitalize on the opportunities both here and across the regional markets as a whole."

Further information and application forms and instructions can be accessed on the TRA website at www.tra.org.bh and interested parties are invited to register with the TRA's Licensing Directorate.

Successful applicants, as defined by Bahrain's Telecommunications Law, must be financially sound, technically competent, and capable and willing to comply with security and anti-obscenity requirements. In order to apply for a license all foreign companies must be Bahrain domiciles or appropriately registered branches of foreign entities.

 

Bahrain to offer new telecom licenses (From Khaleej Times, June 27, 2004)

 

DUBAI - Bahrain's telecom sector will take a giant leap towards liberalization on July 1, when Telecommunications Regulatory Authority (TRA) will offer key licenses thereby marking the full opening of the Kingdom's telecommunications sector.

 

Final licenses on offer will be Multiple National Fixed Service (MNFS) licenses and Multiple International Service Licenses (MISL). Currently the two telecom companies which dominate their presence are Batelco and MTC-Vodafone.

 

Senior reliable sources from Bahrain's telecom sector, said: "The past months have been exciting ones for the telecommunications industry and subscribers of telecommunications services in Bahrain, as TRA continues its efforts to create a competitive and dynamic market place capable of accommodating new operators and bringing new and innovative services to users in the Kingdom."

 

Created in October 2002, under the Telecommunications Law, the TRA has achieved a number of key goals, all aimed at creating value for consumers and driving investment and growth in the national economy. Market liberalization is not only expected to meet ever increasing demand for telecommunications services but will also provide benefits to consumers such as greater choice in terms of providers and service options, enhanced customer service and overall reductions in price.

 

"Competition in the market is also expected to generate significant investment opportunities for entrepreneurial Bahraini individuals and businesses, new job opportunities for all Bahrainis, and, further, will help to ensure that the Kingdom continues to build upon its position as a premier regional business and investment centre," he said.

 

The TRA is also focused on encouraging the development and availability of the widest possible range of information and communications technologies and services within Bahrain. For more than 20 years, Batelco has played a critical role in the evolution of the telecommunications industry in Bahrain, and it is expected that competition will drive even further innovations and the introduction of new services from Batelco itself as well as from new market entrants.

It is the intention that new services will be provided in an open environment, which encourages investment and allows all market operators the necessary flexibility to best meet user needs. Over the past year in particular, the TRA has laid the foundation for ensuring these objectives can be realized, and that its obligations to new and existing market players and consumers are being met.

 

The granting of the country's second mobile license in April 2003 was a significant milestone for Bahrain. This move not only marked a critical step forward in the TRA's efforts to introduce competition into the telecoms market, but was also a turning point in the Kingdom's overall goal of promoting free market principles.

 

The process, or "beauty contest," through which the second operator was selected was a transparent and rigorous one aimed at ensuring the chosen applicant could deliver high-quality service, meet growing consumer demands and provide optimal investment and job opportunities for the citizens of Bahrain. MTC-Vodafone (Bahrain) was selected from among some 10 high-quality regional and international operators seeking to enter the Bahrain's fast growing mobile telecommunications market. With MTC-Vodafone (Bahrain) having launched services in mid-December of 2003 some of the benefits of competition have already come to light.

 

The company has said it will invest more than in the order of $300 million in the Bahrain over the next several years, more than 170 Bahraini staff have already been hired, and consumers have begun to see price reductions for mobile communications services. In anticipation of the launch of service by the second mobile licensee, last December, Batelco made reductions to its mobile tariffs and the official start of competition saw additional gains in areas such as customer service, choice and quality.

 

Competition drives ingenuity and ensures that operators will always strive to provide consumers with better quality, better service and better prices.

 

This trend has already emerged in the mobile sector and the introduction of competition in additional areas of the telecommunications market will also bring positive changes for subscribers in a broad range of other service areas.

 

Following the granting of the second mobile license in April, the TRA, in August 2003, announced the availability of Internet Service Provider (ISP) and Value Added Services (VAS) licenses. Already, several companies have been issued with ISP and VAS licenses, and TRA has received numerous inquiries from potential applicants in both areas.

 

With liberalization of the telecoms sector still a new phenomenon, the TRA is actively seeking to encourage Bahraini businesses to take advantage of the investment opportunities that exist in the telecoms sector in general, and especially in the rapidly expanding areas of the Internet and value added services.

 

Unlike the mobile license tender which could only see one successful applicant, any number of qualified companies can receive ISP and VAS licenses, license fees are limited and, importantly, low initial capital investment costs ensure that small players have the opportunity to enter the market and take part in the creation of a dynamic telecoms environment.

 

In order to lay the foundation for the introduction of competition and new services in other areas of the telecoms sector as the liberalization process proceeds, a new numbering scheme was needed in Bahrain. As part of its duties, TRA was charged with developing a numbering plan, which would provide a level playing field for all market operators. This meant creating a sufficient pool of numbers that could then be allocated to operators, both new and existing, in a fair and equitable manner - both in terms quantity as well as the desirability of the range of numbers provided.

 

Working together with Batelco and MTC-Vodafone (Bahrain), a joint public outreach campaign called 'The Numbers' was announced in November to build awareness among the public of the new numbering plan, and provide residential and business customers with clear and detailed guidelines.

 

With a new National Numbering Plan in place that can accommodate the entrance of new operators and new services, the introduction of competition in the mobile sector and the availability of ISP and VAS licenses, the TRA also began the offer of additional licenses on 1 January 2004. These were: Multiple International facilities licenses; and Multiple licenses in the further radio based areas of VSAT, Paging and PAMR.

 

New telecom firm planned (From The Gulf Daily News, June 13, 2004)

 

MANAMA - Bahrain is expected to be a major telecommunications centre covering the Middle East, Asia and Africa through the establishment of a US company whose representatives will visit Bahrain during the coming months.

 

A US official told our sister paper Akhbar Al Khaleej that the project was being planned by the US government as part of the Free Trade Agreement signed recently between the two countries.

 

Batelco in roaming deal with ArmenTel (From Bahrain Tribune, May 25, 2004)

 

- Batelco mobile users traveling to Armenia will now be able to make and receive calls while they are there, thanks to the deal struck between Batelco and Armenia Telephone Company (ArmenTel) in Armenia.


Roaming facilities between Bahrain and Armenia took effect last week. The signing between Batelco and ArmenTel preceded the start of operations between the telecoms companies.


Ebrahim Al Sayed, acting senior manager mobile services at Batelco said: "We have been working to expand the international network that our customers are using for roaming services. The signing of this agreement increases the already substantial reach Batelco's mobile users have... Our aim is to provide a network for our customers that encompasses anywhere they might travel to. The recent signing has allowed us to extend the scope of international roaming connections for Batelco mobile customers by a significant amount."


Batelco now has commercial roaming agreements with 103 countries and 248 operators.

 

Telecom liberalization on track (From Bahrain Tribune, May 18, 2004)

 

- The Telecommunications Regulatory Authority (TRA) has hailed the progress being made in the Kingdom's telecommunications sector.

 

Marking the World Telecommunications Day, the TRA confirmed that the liberalization process, begun two years ago, is on track with the market in Bahrain due to be fully open to competition in all areas by July, making the Kingdom a role model and the first Gulf state with a fully liberalized market environment.

 

The past year has seen great advancements in Bahrain, especially in the mobile-telecommunications sector, where the benefits of competition have seen enhanced service, greater choice and more value in terms of pricing for the users of mobile telecommunications services.


It is expected that as the market fully liberalizes in July and competition begins in additional segments, similar benefits will be seen across the broader spectrum of telecommunications services.
TRA general director Andreas Avgousti said: "There's no better time than this day to highlight the great advances made in Bahrain's telecommunications sector.


"The process of liberalization has moved forward in an efficient and transparent manner which has resulted in the creation a world-class regulatory and market environment that can attract new operators and effectively deliver the promised benefits of competition to market players and telecoms users.


"As we move towards full liberalization of the market in just a few months, we continue to encourage users, investors and operators to work with TRA and the industry to create the region's most dynamic and competitive market," he said.

 

Bahrain telecom sector reforms 'are on track' (From Gulf Daily News, May 17, 2004)

 

Manama - Bahrain is on target to complete liberalization of its telecommunications market by July. The declaration comes as World Telecommunications Day is marked globally.

 

Bahrain's Telecommunications Regulatory Authority (TRA) praised the progress being made in opening up the market, which was for years a monopoly.

 

"The liberalization process will mean that the Bahrain market will be fully open to competition in all areas, making the Kingdom a role model and the first Gulf state with a fully liberalized market environment." it said.

 

In the past year the benefits of competition have seen enhanced service, greater choice and more value in terms of pricing for the users of mobile telecommunications services, said the TRA.

 

It is expected that as the market becomes more liberal and competition begins in additional segments in the months and years ahead, that similar benefits will be seen across the broader spectrum of telecommunications services, it said.

 

"There is no better time than on this day to highlight the great advancements that have been made in Bahrain's telecommunications sector," said TRA general director Andreas Avgousti.

 

"The process of liberalization in the Kingdom has moved forward in an efficient and transparent manner. "This has resulted in the creation a world-class regulatory and market environment that can attract new operators. It can also effectively deliver the promised benefits of competition to current market players as well as telecoms users in Bahrain.

 

"As we move toward the full liberalization of the market in just a few months time, we continue to encourage users, investors and operators to work with the TRA and the industry to create the region's most dynamic and competitive market."

 

MTC-Vodafone secures 10 percent of Bahrain market (From Bahrain Tribune, April 17, 2004)

 

- MTC-Vodafone has captured 10 per cent of the Bahrain mobile market according to results summarizing its first quarter performance.

 

Director-General, Dr Saad Al Barrak, said the result was well above the expected level and put the mobile phone operator well on track to capture above 30 per cent of market share by the end of the first 12 months of operation.


The news comes against a backdrop of buoyant performance by the company in general. MTC-Vodafone has won the coveted contract to provide part of Iraq's mobile phone network and has recently been selected to manage Lebanon's Libancell mobile network, fighting off competition from world leaders.

 

"Our first quarter of operations has been historic and brimful of achievement. We succeeded in establishing a technologically- complex telecommunications network in Bahrain within seven months and delivered the first mobile network to combine powerful 3G and EDGE networks which is a record for the region," Dr Al Barrak said.


"The level of innovation in our Bahrain operation has been the highest we have undertaken so far and we have succeeded while using local resources and a predominantly Bahraini workforce."


Dr Al Barrak said rumors that MTC and Vodafone were splitting were baseless, adding that the union was on a per country basis and that had led to MTC competing with Vodafone in markets like Saudi Arabia where the latter had prior commitments. He added that the company had charted a stage-by-stage growth plan and was bidding for mobile service provision in Oman and Saudi Arabia as part of its regional expansion.


"By 2012, we want to take on world markets. Our competition extends beyond Bahrain, Kuwait and the region and we are committed to aggressive growth.


"Our experience in Bahrain has been positive. We were able to develop a new and unique methodology on building a corporate organization on our own and got rid of the idea of depending on a clutch of consultants to develop our core business.

 
"Barely three months into our operations here, we have over 80 per cent Bahrainization and our core business is run by a young, educated and well-trained Bahraini team," he said. He said the MTC-Vodafone worldview will be shaped by its experience in Bahrain and other places. He did not rule out using the Bahrain operation's resources in Iraq while building a GSM network in Southern Iraq in partnership with Atheer.


Dr Al Barrak said while MTC-Vodafone Bahrain (MTC-VB) was very much a mobile telephony company, it was expecting an international gateway license in July 2004 to provide state-of-the-art international connectivity to all its Bahrain customers at a better price.


"We have been given the license to operate a second mobile service and an Internet license we use to offer mobile-enabled Internet connectivity and make our mobile telephony suite of services richer. We are looking forward to offering international telephony services through an international gateway license and offering quality and affordability."


The company's plans involve leveraging its IT superiority to service the data and information needs of the Kingdom. This will mean the company will be investing more into its Bahrain operations by next year. "Absolutely - we believe in re-investing our profits to achieve leadership and are open to the idea of investing more into the Bahrain market. We aim to jump to 100,000 customers by the end of Year One and beat the target by continuously introducing more services for our clients. But what will differentiate MTC-VB is that we are not just a telecom company but are driven by our firm grounding in IT.


"We belong to the new generation of communications companies that go beyond enabling voice transfer. Where others start and end with being a conduit for voice, we have made our base in the new era where mobile telephony brings much more to customers - information and data services are the future and our next generation of services and products will bring increasingly sophisticated information and data-centric qualities to the customer-mobile phone interface. A sizeable chunk of our Bahrain business comes from data services already," he said.


Dr Al Barrak plans to integrate MTC-VB with the rest of the group to leverage mobile telephony, roaming, optimal routing and integration with Vodafone internationally. "We are here to stay and succeed - we have over 80 per cent Bahrainis in our work force and have demonstrated our willingness to be a community partner by raising over BD55,000 for local children's charities through the auction of preferred numbers," Dr Al Barrak said.


"We have initiated talks on involvement with local education and e-health projects of the government and intend to continue creating milestones in Bahrain's telecoms scene," he added.

 

Batelco adds lines to meet F1 needs (From Bahrain Tribune, April 4, 2004)

 

- In preparation for Formula One's first ever outing in the heart of the Middle East, Batelco, Bahrain's national telecoms operator, has ordered additional international connectivity from FLAG Telecom, representing a 200 per cent increase over the existing capacity.

 

The highly-reliable circuits, which have already been provisioned, will enable Batelco to meet the anticipated communication needs of the global TV and news agencies covering the prestige event.

 

Tony Hart, the Batelco Chief Executive, said: "The eyes of the sporting world will be on Bahrain this weekend as the region's first F1 event takes place in Manama. Batelco already provides Bahrain with high-quality, direct links to the rest of the world. The huge increase in demand for international connectivity during the Formula One weekend means that we have had to dramatically increase our telecommunications capacity. We are looking to FLAG to meet our needs at this exciting time. We wish everyone a successful event."


Walid Irshaid, the FLAG Telecom President for Middle East and Africa, said: "FLAG already provides high-quality global circuits for Batelco and we are pleased to provision additional connectivity for this spectacular event. A 200 per cent increase in capacity demonstrates the enormous bandwidth required to meet F1's global TV audience. As a private cable operator we can quickly react to the needs of our customers, while offering flexible terms from short term leases for a specific sports event, such as the F1 Grand Prix in Bahrain, to long term purchase, all at competitive prices."


In bringing one of the world's premier sports events to the Middle East, it was vital that the region could demonstrate to the F1 organisation that reliable international communications were in place. FLAG has the experience of managing international communications for many other prestigious sporting occasions, including the FIFA World Cup on behalf of Korea and Japan, and the UK's Wimbledon Tennis Championships.


FLAG Telecom is a leading provider of international communications and advanced network services. The FLAG cable network spans the globe, connecting four continents and touching 75 per cent of the world's population. FALCON, the recently announced addition to the integrated FLAG network, will be an extremely high capacity cable system stretching from Egypt to Hong Kong, incorporating the first resilient submarine network loop around the Gulf region. FLAG has an acknowledged reputation for exceptional quality and service support and offers customers east and west routing, meaning traffic can be switched at any time to avoid a cable cut or natural disaster.

 
Batelco has been a FLAG customer since 1997, and has already expressed interest in participating in the FALCON cable. FALCON will allow Bahrain to diversify its current capacity arrangements and enable Batelco to confidently provide new services to customers at faster speeds and more cost-effectively than before.

 

Batelco roaming service in Tunisia