Bahrain Telecom News Bahrain telecom operator defers India foray (October 28, 2008) Dubai (IANS) - Bahrain's leading telecom services provider Batelco is for the moment putting off its plans to enter into the booming Indian market. The company's chief executive Peter Kaliarapoulos, briefing the local media on quarterly results, said though Batelco was in the process of acquiring a license in India, it was not in a hurry. "The asking price is too much and we do not want to invest that much," reports quoted Kaliarapoulos as saying. "We believe we are in a good position to invest in India because the mobile penetration is still quite low, but we are not willing to buy at the price we are being quoted," he said. Batelco has put aside $2 billion for investments in India and Africa. "Indian and African markets still have huge potential of growth, especially in the mobile telephony. These markets have been earmarked by Batelco as the best business opportunity for its expansion plan," the chief executive said. Thirty six percent of Batelco's total revenues and 20 percent of its profit stream come from its overseas operations. The Bahrain Stock Exchange-listed Batelco posted a record net profit of 78.3 million Bahraini dinars ($207.7 million) in the third quarter of 2008 on a turnover of 245.4 million Bahraini dinars ($650.9 million). Established in 1981 as a Bahraini shareholding company, Batelco's major shareholders include the Bahrain government, quasi-government institutions, financial and commercial organizations, and private Bahraini and Gulf-based investors. These parties together hold 80 percent of Batelco, while British telecom operator Cable and Wireless holds the remaining 20 percent. Kaliarapoulos's comments on the company's India plans come even as the subcontinent was looking to increase its mobile telecom subscriber base to 500 million in the next couple of years. "We are targeting to have 500 million mobile subscribers by 2010. We have already achieved a subscriber base of 305 million," Sudhir Saxena, director in India's department of telecom, told IANS in the course of the Gulf IT Exhibition (GITEX) in Dubai earlier this month. According to Saxena, the country was looking for better spectrum technology for optimum allocation of licenses. "Back in India, we have a situation with the spectrums in the sense that some slots are vacant while others are not. We are looking for an expert who can consolidate these slots and then offer these to service providers," Saxena explained. He added that the government was in the process of auctioning third generation (3G) spectrum. Saxena said the government was taking several measures to increase rural teledensity also. Major telecom operators in the Gulf are increasingly looking at India for expansion. Last month, the United Arab Emirates' (UAE) leading telecom operator Etisalat announced its foray into the Indian market by buying 45 percent stake in the newly licensed Indian telecom operator Swan Telecom. Swan holds universal access service licenses (UASLs) in 13 telecom circles in India, and is in the process of acquiring UASLs for two more circles. 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 (From Bahrain Tribune, March 17, 2004) - Bahrain's mobile users traveling to Tunisia will now be able to make and receive calls when they are there, thanks to a deal between Batelco and Orascom Telecom Tunisie S.A. (Tunisiana). Roaming facilities between Bahrain and Tunisia began operating last month following the signing of a commercial agreement between Batelco and the Tunisian operator. Senior Manager for Mobile Services at Batelco, Hamza Ali, said: "The signing of this agreement follows Batelco's recent announcement that new international roaming services have begun operating in several more countries including Gabon, Japan and Moldova.”Our aim is to extend the number and scope of international roaming connections for Batelco mobile customers as far as possible and these countries are all key additions to the network." Batelco now has commercial roaming agreements with 101 countries and 245 operators. MTC-Vodafone opens customer care facility (From Bahrain Tribune, February 16, 2004) - Building on its commitment to deliver high quality services and customer care throughout the Kingdom, MTC-Vodafone (Bahrain) yesterday officially opened its customer care facility at Bahrain's International airport. The facility was inaugurated under the patronage of the Muharraq Governor, Salman Isa Bin Hindi, and attended by senior officials from the governorate. The facility in the Arrivals Lounge at the airport, will operate 24 hours seven days a week. The airport is at the centre of commercial aviation in the Gulf region. A number of international airlines, including cargo carriers and charter flight operators, have chosen the airport as their regional hub in the Middle East. The airport handles more than 4.2 million passengers a year. "MTC-Vodafone (Bahrain) is delighted to introduce both visitors and the people of Bahrain to the latest technology in mobile communications. The airport is a key point for both MTC-Vodafone and the people of Bahrain as it is the first impression new visitors, whether on business or as tourists, receive as an introduction to the Kingdom," the Chief Operating Officer, MTC-Vodafone (Bahrain), Khalid Al Farkh, said. "As all businesses get ready and start the countdown to the Bahrain Formula One Grand Prix, the airport is seeing an increase in business and visitor traffic and we are delighted to be in poll position in the Arrivals Lounge to give our support to the development of the Kingdom by bringing world class-mobile communications services to the fore," he said. The new outlet will offer services to over 90,000 citizens living close by, as well as thousands of visitors and passengers. It will provide direct services such as MTC-Vodafone (Bahrain) services and advice, handsets, bill payment and customer services. The airport outlet will enable more Bahrainis and visitors to the Kingdom to enjoy the wide range of services MTC-Vodafone (Bahrain) offers. Batelco launches new service for businesses (From Bahrain Tribune, February 12, 2004) - Financiers and business people in the Kingdom now have access to essential financial information on the move, thanks to an innovative new service from Batelco Mobile. The mobile-based info service is tailored to provide specific financial and business information in text message format. Jordan-based company MENAfn will provide specialist financial information on SMS for Batelco business customers with postpaid Batelco subscriptions. "Bahrain is recognized as the financial capital of the Middle East and we have a thriving business community, so it makes sense for us to tailor specific content for this growing business segment," Batelco's senior manager, mobile services, Hamza Ali, said. MENAfn will be one of the many companies providing tailored information through Batelco's mobile network. The company is one of the rising stars of Middle East mobile content, and provides a service in Jordan, Lebanon and the UAE. Market research shows that the concept of a financial info service was well supported with 60 per cent of the research participants willing to pay a premium rate for such a service. Specific requests covered news about Asian/Pacific market indices, global currencies exchange rate, European market indices, breaking news, and global business headlines. The information will be available via SMS pull and push services. Customers will be able to subscribe to the MENAfn service via SMS and receive messages automatically via the push service from MENAfn. Push subscribers are charged a monthly rate Customers can also pull or request information to be sent on demand. All they have to do is send a text message with a command to the assigned short-code, and MENAfn will recognize the command and reply with a message. Pull subscribers are charged for each message sent according to standard SMS charges and for the response message from MENAfn. Further information on the type of content provided, and how it can be obtained is on http://www.batelco.com/menafn. The service is considered a premium service and is priced relatively higher than regular SMS charges. The pull service offers two options. News on currencies, indices, quotes and metal prices is priced 60fils per message. Option two gives news on women, wisdom, a TV Guide, weather forecast, market indicators and financial news and is priced 40fils per message. The push service offers two options. The premium service is priced BD2 per month, with the regular service at BD1 per month. To receive information customers can subscribe by SMS. No web interaction or signing up is necessary, although help files are available in the Batelco website at http://www.batelco.com/menafn" "Because no technical know-how is necessary to use the service we believe it will be very popular," Ali said. "This service is part of our promise to rewarding customers and provide solutions to ease their hectic business lives. The service will keep them up-to-date and educated about major business factors, whether they are in the office or not. It is particularly relevant for banks, since the worldwide markets continue to trade on Fridays when most of the Middle East is closed. "Batelco also understands that business customers have to be constantly on the move; they have no time for searching the web. With this service the information can simply find them," Ali said. Four new telecom licenses available (From Bahrain Tribune, January 28, 2004) - The Telecommunications Regulatory Authority (TRA) announced the availability of four new types of licenses in Bahrain as it takes the necessary steps to introduce competition across a broad spectrum of telecommunications services and achieve full liberalization of the market by July. In accordance with the Kingdom's telecommunications decree No. 48, which came into effect on October 23, is now accepting applications and granting qualified candidates with: - International facilities licenses: This license authorizes the termination, landing, establishment of international connectivity and obligation and right to connect to other Bahrain-licensed networks. In order to provide international services, an additional license, International Services License, is needed. - Very small aperture terminal licenses: This license grants the use of a very small aperture terminal, a digital satellite-data network with a small antenna diameter for private use only. - Paging licenses: This license allows for commercial use of paging services to subscribers. - Public access mobile radio service licenses: This license allows use of public access mobile radio in dispatch applications, for instance, by truck and taxi fleets. Commenting on the availability of the four new licenses, A. Andreas Avgousti, TRA General Director, said: "As another significant step in the liberalization process, the authority is pleased to make available new licenses and thus open new opportunities that'll allow for the entrance of new players and competition into four additional areas of the telecommunications sector. "The offering of these licenses is aimed at creating a telecoms environment capable of delivering enhanced service, efficiency and value for consumers whilst stimulating investment and growth in the economy as a whole. Prospects in these market segments are significant and any number of qualified candidates may apply and can be granted these licenses. "TRA encourages innovative businesses and investors to fully assess the opportunities that exist in these areas and take advantage of the chance to enter what's becoming an increasingly dynamic and competitive marketplace." As an additional step to ensure the ease and transparency of the application process, the authority will have the criteria for acquiring individual licenses along with the application form available on its Web site www.tra.org.bh. Both these documents are available in English and Arabic. In addition to licensing opportunities in these four segments, TRA continues to offer an Internet service provider and value-added services which became available last August and is on track to offer national fixed-service licenses and international service licenses in the Kingdom by July 1, thus fully liberalizing the telecommunications sector. TRA was established by legislative decree No. 48 promulgating the Telecommunications Law. It's an independent body and its duties and powers include, among other things, protecting the interests of subscribers and users and promoting effective and fair competition among existing and newly-licensed operators. Bahrain: 30,000 visit MTC-Vodafone Mobile Fair in first six days (From Bahrain Tribune, January 14, 2004) - Nearly 30,000 people visited the Mobile Fair set up by MTC-Vodafone in the first six days after the service was launched in Bahrain on December 28, its Chief Operating Officer (CEO) said yesterday. Khalid Al Farkh said about two weeks since the formal launch of the service, they were already focusing on keeping ahead of people's demands. "The first few days were positively challenging to some of our sales team as people came running in to sign up for unique numbers and be the first to use our service," said Al Farkh. "In response to the rush, we increased our sign up areas and registration points and quickly adapted our management process to speed things along." He said activities at the Fair have continued to roll on and increase day by day. "Feedback from visitors has been very positive as mobile users get an opportunity to really see the difference as they discover, experience and enjoy our new services." He said visitors are now really discovering their new world of telecommunications as they are shown the wide range of products and services. "Customers are experiencing the speed that the cutting edge technologies bring to our services as they discover the full potential of their mobile handsets." He said mobile users might now do more than simply talk, they can explore news, entertainment, e-mail, sending and receiving picture messages and much more. "Live demonstrations have been organized throughout the day and the people of Bahrain can also participate in the numerous fun and interactive events we have laid on." He said last week, visitors to the Fair witnessed another auction of Unique Numbers with the total raised for local children's charities standing now at BD55,250. Also held was the first raffle draw for customers who purchased MTC services as well as for others with goody bags and mobile connections being given away as prizes. "The target set by us is BD100,000 and we are inviting members of the public and the Bahrain business community to support the drive." He said all proceeds will go direct to children with special needs. "The third and final auction is set to take place tomorrow (Thursday) and will be hosted by Al Montasser Billah, the Egyptian comedian. He said they will announce which charities will receive the money soon. The CEO said the mobile phone is an increasing source of entertainment for everyone. "At our Fair we are simply adding to the entertainment value by bringing in activities that the wider community can enjoy and take part in." He said their Wheel Changing competition starts again this week with teams from across the corporate sector. "Our Kids' Court activities are now kicking in and we have stilts, juggler and fire displays to keep everyone inspired. In the evenings we are hosting musicians from across the region with light Egyptian Drummers, Lebanese singers, Latin Jazz musicians and, for the gentler ones amongst us, melodic harp and violin musical entertainment." He said the Fair is not only a telecom extravaganza but also a lively entertainment venue for the whole family. "Weekly Raffle draws and spot prizes for various gifts, packages and tickets for the forthcoming Bahrain Grand Prix Formula One Race can be won." Also on full display is the array of new products and services with customers being able to browse the range of services, games and the latest handsets being introduced to the market. The attraction at last week's raffle draw was the presence of the Bahrain Unstoppabulls Racing Team that was at hand to pick the winning numbers along with the members of the public. A spot quiz competition was also held and those attending were able to win attractive prizes on answering questions correctly. Bahrain to liberalize telecom sector by July 1 (From the Daily Star, January 10, 2004) MANAMA - Bahrain, the Gulf's financial and banking hub, is to fully liberalize its telecommunications sector by July 1, in a move aimed at attracting more foreign investment. A. Andreas Avgousti, the head of Bahrain's Telecommunications Regulatory Authority (TRA), said licenses for new telecom services are available, although some of them will not be used before July 1. Paging Service, which allows the commercial used paging services to subscribers, and VSAT (Very Small Aperture Terminal), a digital satellite date network with small antenna diameter for private use, are both available. Public Access Mobile Radio Service, such as those used for taxis, is also available. "An international telecommunication facilities license will also be available in the first quarter," Avgousti told The Daily Star in an exclusive interview. This license authorizes the termination, landing and establishment of international connectivity and obligation and right to connect to other licensed networks in Bahrain. "The licenses for international traffic are coming up as well, so people can bring traffic to Bahrain. From July 1, other companies can make arrangements to bring their own cables here and sell capacity to people," Avgousti said. There are two companies that can bring and send international traffic from the kingdom Bahrain Telecommunications Company (Batelco) and the newer MTC-Vodafone Bahrain. TRA, an independent government body set up in 2002, granted MTC-Vodafone a license to operate a second mobile service, ending the monopoly of Batelco, which has set up one of the most advanced telecom network in the area. "The license for international telecommunication facilities is for those who want to bring an international cable to Bahrain. They can bring the (marine) cable now, but they can not use it before July 1. "The license allows to bring traffic for everything voice and date. So there will be no restrictions," Avgousti said. Asked about the benefit for Batelco and MTC-Vodafone, Avgousti said: "This will give them the option to buy cheaper capacity and (give them) more capacity. It will also help them if their one cable was down; they can switch to the other one." Avgousti said Bahrain will also open fixed telephone for competition from July 1. Batelco, 39 percent owned by the Bahraini government and 20 percent by Britain's Cable and Wireless, is the kingdom's only provider for fixed telephone and internet services. "The last license is for fixed telephone. So anybody after July 1 can apply to put their network to offer fixed telephone services. After July 1, anybody in Bahrain can offer any telecommunication services with a license, apart from the mobile license. The only restriction you have is two mobile licenses. By July 1, the telecommunications market in Bahrain is open." Avgousti said TRA had been approached by local, regional and international firms interested to invest in Bahrain's telecom sector but gave no details. Batelco offers users roaming service in Iran (From Bahrain Tribune, December 31, 2003) - For the first time Batelco Mobile customers can now make and receive calls while in Iran, as a result of a deal recently signed between Batelco and the Telecommunications Company of Iran (TCI). Under the agreement Batelco's Freetime and Valuetime mobile post-paid customers are able to make and receive calls in Iran while Sim Sim subscribers can receive calls only. The signing of this agreement follows improving the long-term economic and commercial relations between the Islamic Republic of Iran and the Kingdom of Bahrain as well as the growing demand from Batelco customers for roaming services with this country. The deal makes Iran the 100th country in which Batelco customers can stay connected using their mobile phones without paying extra charges or any deposit to enjoy the roaming facility. Hamza Ali, senior manager mobile services at Batelco said: "Our aim is to extend the number and scope of international roaming connections as far as possible. Iran has been a key addition to the network of countries where we offer these services." "We now offer roaming facilities in 100 countries around the world through 241 operators. Batelco wants to make life easier for customers while they are outside Bahrain and we are committed to offering our customers the best service by enabling them to stay in touch regardless of where they are." The agreement is a continuation to the international roaming agreements set up by Batelco in several countries last month including Palestine. MTC-Vodafone signs supply deal with Fakhro Electronics (From Bahrain Tribune, December 28, 2003) - New Bahrain mobile phone operator, MTC-Vodafone has signed an agreement with Fakhro Electronics (FE) who will act as supplier of Sony Ericsson mobile handsets and accessories to MTC-Vodafone in Bahrain. The agreement represents another major step ahead in the company's goal to present the latest and most up-to-date software and hardware available in the telecom sector. "We are delighted about this collaboration with Fakhro Electronics. The company is a strong brand and is one of Bahrain's leading suppliers," said Khalid Al Farkh, Chief Operating Officer at MTC-Vodafone Bahrain. "The agreement with Fakhro Electronics enables us to broaden our service range. For our customers, that means greater freedom of choice." FE is a subsidiary of Abdullah Yusuf Fakhro & Sons, a well-established group of companies in Bahrain. Alfredo D'souza, General Manager of Fakhro Electronics, said: "We are delighted to be associated with MTC-Vodafone in Bahrain and encouraged by the opportunities provided through the innovative style and drive of the new operator. We are very excited about the new services MTC-Vodafone are planning to bring to the Bahrain market and we are sure these will work well with the features incorporated with Sony Ericsson handsets. This partnership will benefit the customers a great deal. We wish MTC-Vodafone every success in the launch of their service." The agreement will also enable customers to benefit from the added value services offered with every purchase. The new handsets are due soon encompassing a full range from GSM to WCDMA, enabling GPRS and EDGE technologies exclusively for the Bahraini market. Batelco-MTC Vodafone interconnection allowed (From Bahrain Tribune, December 18, 2003) - The Telecommunications Regulatory Authority (TRA) has announced that on the evening of December 15, at the request of Batelco and MTC Vodafone Bahrain, it has issued the two parties with an interim interconnection order. The order sets out the terms of the agreement under which the networks of the two operators will connect so that consumers from one network can contact consumers connected to the other network. The terms and conditions of the interim interconnection order will be reviewed on a monthly basis by the authority, at which time all pertinent information received from the operators will be taken into account. The TRA's Director-General, A. Andreas Avgousti, said: "At the request of Batelco and MTC Vodafone Bahrain, the TRA has acted swiftly to assist the operators in proceeding with interconnection. While this order stands, it in no way prohibits Batelco and MTC Vodafone Bahrain from continuing negotiations to reach an interim interconnection agreement that is agreeable to both parties, if they so wish. It is situations such as these that reinforce the role of the TRA as an independent and impartial arbiter acting in the overall interests of the Kingdom of Bahrain, whilst also ensuring that consumers benefit from the arrival of competition in the market." Newcomer MTC-Vodafone Bahrain is set for a December-end launch of a suite of services including state-of-the-art third generation (3G) services. MTC-Vodafone set to meet deadline in Bahrain (From Bahrain Tribune, December 16, 2003) - With key partners Siemens, FCCI/Nokia and International Turnkey Systems delivering complex technological solutions, MTC-Vodafone looks set to meet its December-end deadline of launching its service in Bahrain. Under license obligations, MTC-Vodafone are committed to deliver 95 per cent geographic coverage from Day One; 2g (GSM), EDGE (data management) and 3G (third-generation) technologies; voice services and various data services such as SMS, MMS and WAP. Khalid Al Farkh, Chief Operating Officer for MTC-Vodafone Bahrain said the company was now only days away from the commercial launch of perhaps one of the fastest-deployed GSM networks in the world, most certainly in the Middle East and the launch of 3G services as well. Key partners in the development of the MTC-Vodafone Bahrain network are Siemens Mobile and FCCI/Nokia for 3G/UMTS (Universal Mobile Telecommunications Systems) and FCCI/Nokia for EDGE with ITS providing integrated solutions supporting billing, customer care systems, mediation and provisioning software and a number of IP-based systems. In presenting the regional opportunity for 3G technologies, Soenke Peters, Vice-President, Siemens Information and Communication Mobile Networks, Middle East, said: "The fact that MTC-Vodafone is the first operator to bring 3G/UMTS to the region, is a testament to both their technical and business expertise and their unique vision for the development of the Middle East. As provider of leading-edge technology and the driving force behind UMTS, we have worked side by side with MTC-Vodafone to support their aggressive growth strategy, meet the challenges head-on." Although mobile data services are already considered to be strong in the Middle East, there is greater potential with the adoption of 3G. Revenue from data services is expected to grow at a faster rate than revenue from voice. By 2007, it is predicted that 18 per cent of total revenues will be from data applications and the introduction of 3G/UMTS to the region will create new revenue streams for operators, fuelling growth further. Future Communications Company (FCC), a re-seller of Nokia network equipment in Kuwait and Bahrain were brought in to deliver and implement a complete Nokia radio network including GSM/EDGE/UMTS base stations, base station controllers and other network equipment plus operational support services. Najeeb Al Awadi, Communications Manager of FCCI said the company was proud to be part of the first Middle East 3G services launch. Mohammed Rafi, ITS Assistant General Manager, whose company stitched together the technology with integrated solutions said the prestigious partnering agreement with MTC-Vodafone Bahrain had been challenging and a rewarding experience. Nokia gets network order from Bahrain (October 29, 2003) STOCKHOLM (Dow Jones) - Nokia Corp of Finland said Wednesday that its reseller in Kuwait and Bahrain, Future Communications Company, will supply Nokia's GSM/EDGE and WCDMA 3G network to MTC-Vodafone in Bahrain. Future Communications Company, or FCC, a value added re-seller of Nokia network solutions in Kuwait and Bahrain, has been chosen to build a GSM/EDGE WCDMA radio-access network for MTC-Vodafone in Bahrain. This will be the first implementation of an EDGE/WCDMA network in the Middle East. After implementation began in August, the first GSM call was made on Sept. 1. In addition, MTC Vodafone recently conducted the first EDGE call in the Middle East. "The MTC Group of Companies has a long history and strong relationship with FCC and Nokia and I am very proud that we have been able to make a mark in the history books on behalf of the Government and people of Bahrain by bringing the best and latest technologies to the Middle East and their country first," said Dr. Saad Al Barrak, MTC-Vodafone's Director General. By supporting the introduction of new technologies such as 3G and EDGE we will have sustainable IT/mobile development for customers in the region and longevity in the networks we provide," said Mr. Ali Behbahani, Partner, FCC Communications. Under the agreement, FCC will deliver and implement a complete Nokia radio- access network, including GSM/EDGE/WCDMA base stations, base station controllers and other network equipment, plus operational support services. FCC will carry out the network implementation and integration, supported by Nokia. Batelco’s gross revenue up five percent in 1H 2003 (From menareport.com, August 4, 2003) - The Bahrain Telecommunications Company (Batelco) reported a five percent increase in gross revenue to 95.1 million Bahraini dinars for the six months ending June 30, 2003, driven by strong growth in Infomatics and mobile services. A BD 27.5 million profit attributable to the group was achieved in line with Batelco's plan for the year. "Revenue generated by our mobile operation was 14 percent higher than the previous corresponding period and earnings from Infomatics increased by 11 percent. Batelco now has 400,035 mobile customers, representing 58 percent of the Bahrain population," stated Acting Chief Executive of Batelco, Sameer Nooruddin. Launched in June the new Batelco mobile packages were created to reflect customer lifestyles in Bahrain, with different options developed specifically for young people, businesses and families. The launches was marked by wide ranging price cuts of up to 37 percent, with free minutes and SMS message built in to the post paid packages. International call users also received a big boost, with prices to Asia slashed. Batelco was established in 1981 as a Bahraini shareholding company. Cable & Wireless UK owns 20 percent of Batelco and enjoys a strong association with Batelco by providing support, advice and assistance. The company currently has joint ventures in Kuwait, Saudi Arabia, Jordan and Egypt for the provision of Internet access and data communications services. Batelco and Fakhro Electronics sign deal (From gulf-daily-news.com, June 23, 2003) MANAMA - Batelco signed a contract with Fakhro Electronics to sell Sony Ericsson mobile phones and accessories in its one stop mobile shop at Bahrain Mall. This is the first contract signed by Batelco with a distributor in Bahrain and is in line with its brand strategy to provide premium products and services to its customers The agreement, signed at Batelco's offices in Diplomatic Area, was attended by Batelco's Mobile Services manager Hamza Ali, data manager Ismail Ali, customer services chief operating officer Samir Nooruddin, customer services procurement manager Shehrezad Faraj and mobile service retail manger Ebrahim Al Khaja and Fakhro Electronics' general manager Alfredo D'Souza and cellular phones sales manager Mahdi Al Obaidat. $500m telecom boost planned (From gulf-daily-news.com, June 18, 2003) - Bahrain’s economy is getting an injection of up to $500 million with the launch of a second mobile phone service operator. The operation will mean an initial investment of $150m to $200m, says MTC Vodafone Bahrain operations project director Khaled Al Farkh. This is in addition to the $300m already paid to the Telecommunications Regulatory Authority (TRA) to get the license, he told journalists at a Press gathering at the Crowne Plaza yesterday. "By the end of this month, we will know who exactly our investors are. According to the TRA regulations, the company has to be 40 per cent Bahraini," said Mr Al Farkh. "We are still meeting and negotiating with investors and we will announce who our local partners are by the end of the month. There are a lot of rumors but all will be clear soon." He said the company was committed to Bahrainization and offering training opportunities to its Bahraini staff and to university students interested in pursuing careers in the telecommunications sector. "We are committed to having a minimum of a 75 per cent Bahraini workforce in our operations here. As we speak now, we actually have more than that," said Mr Al Farkh. "They are all with us, building the team and laying the infrastructure for our future operations in Bahrain." He expects the company to hire at least 200 people before the end of the year and operations to begin at the beginning of next year. "We would like to emphasize that Batelco is a major player and a competitor. Currently, we have a very professional relationship with Batelco," said Mr Al Farkh. "This competition is healthy and will bring a lot of benefits to customers in Bahrain." MTC Vodafone, said Mr Al Farkh, was also committed to developing the local telecom infrastructure. Mr Al Farkh said the company's Bahrain operations were expected to go public and be listed in the Bahrain Stock Exchange after three years of operation. In addition to its new operation in Bahrain Bahrain, MTC Vodafone operates mobile services in Kuwait and Jordan - serving 1.7m customers. It won the bid to become the kingdom's second mobile operator in April. Batelco signs Intercol deal (From gulf-daily-news.com, May 27, 2003) - Batelco has signed a contract with Intercol to sell Batelco mobile products and services in its outlets. The agreement was signed by Batelco sales and marketing general manager Ian Dench and Intercol director Abdul Rahman Ali Al Wazzan Batelco net profit climbs 9pc in 2002 (From the gulf-news.com, March 28, 2003) - With mobile competitors just months away from entering the local market, Bahrain's Telecommunications Co. (Batelco) said its net profit, before appropriations, increased nine per cent to 58 million Bahraini dinars in 2002 and total revenue has also increased by nine per cent to 185.8 million dinars. Its announced profit amounts to a 21 per cent return on capital employed, the company said in a statement. But it also announced it will be dismissing some of its staff in the near future. Batelco has achieved "robust" results despite "the tumultuous time for the world's telecommunications industry. Difficult market conditions, made worse by cases of questionable corporate governance, plunged the global telecoms and IT industry into gloom," said chief executive Tony Hart. "Batelco will be 'fighting fit' when competitors enter Bahrain's telecommunications market," said First Deputy Chairman, Sheikh Isa bin Ibrahim bin Mohammed Al Khalifa. "The challenge of competition is forcing us to abandon the old technology-led traditions of monopoly telecoms operators and, instead, focus sharply on the customer and what the customer wants - not what the company thinks the customer should have." During 2002, the number of mobile communications users in Bahrain increased to over 390,000. Batelco's mobile communications business generated gross revenue of 72 million dinars - 39 per cent of the company's overall gross revenue for the period - and growth against last year's figure of 34 per cent, Hart explained. He also announced Batelco will dismiss an unspecified number of its employees in anticipation of the forthcoming competition. Three mobile firms to fight it out (From the gulf-daily-news.com, March 26, 2003) - Three companies out of 10 applicants have been short listed for the license to operate a second mobile telephone network in Bahrain. The license is being offered by the Telecommunications Regulatory Authority (TRA), under moves to open up the market. The three short listed companies are Kalaam, MTC-Vodafone Bahrain and Wataniya Telecom Bahrain. Further clarification will now be sought from the companies to ensure sufficient investment, benefit for Bahrain consumers and business users, as well as direct employment for Bahrainis, the TRA announced last night. Final selection and the awarding of the license is expected by April 22. Bahrain's liberalization of its telecommunications market has attracted a high level of interest, including major companies, said TRA chairman Dr Mohammed Al Ghatam. The aim is to foster competition-led growth which will optimize investment and job creation, he said. Dr Al Ghatam said the selection process had been rigorous but fair. Bahrain’s regulator offers favorable incentives for second GSM operator (From menareport.com, February 16, 2003) - The ongoing bid for Bahrain’s second GSM license has March 5 as the deadline for submitting proposals. Bahrain’s government terms and provisions in the license make it very attractive for interested parties. The Kingdom’s small and well-developed market is capable sustain another operator, says the Arab Advisors Group. The new Bahraini Telecommunications Law entails the issuance of a license to a second GSM operator in the country to compete with existing operator, Batelco. The mobile licensee will be authorized to establish and operate a GSM mobile telecommunications network and to provide public mobile telecommunications services in Bahrain. The winning bidder will also have the right, but without obligation, to establish and operate a 3G network. “The number of mobile users who are between the ages of 14 and 21 has risen rapidly in the last two years, mainly due to the successful launch of the prepaid SimSim service in addition to the availability of cheaper handsets in the market,” explained Arab Advisors Bahrain Analyst, Hala Baqain in a recently published report. “With this increase in the young generation users, the demand for personalized services such as downloading ringing tones and more sophisticated wireless Internet services will definitely increase. The Arab Advisors Group projects Bahrain to have a GSM subscriber penetration of 77 percent by 2006,” added Baqain. “It is very evident that the government of Bahrain is very keen on introducing competition to its communications market,” said president of Arab Advisors Group, Jawad Abbassi. “The new mobile operator in Bahrain will have incentives and privileges unseen before in other Arab market. These include very modest annual license fees of one percent of gross revenues, unbundling of Batelco’s ducts and fiber infrastructure, national roaming with Batelco for a year, the option but not the obligation, to rollout 3G services and the right to lease circuits from Batelco for International Long Distance service provision.” “With an upfront license fee of $265,000, the emphasis in this “beauty contest” tender is not on maximizing immediate governmental financial gains, but making the new network quite viable right from the start,” Abbassi added. Batelco upgrades SMS services (From itp.net, February 6, 2003) - Batelco has signed a deal with Logica to extend the capacity of its short messaging service (SMS) centre. The upgrade will allow the PTT and its corporate clients to send bulk SMS messages to customers. The extension will enable Batelco to create an additional revenue stream, enhance services to corporate customers and improve load sharing for high SMS traffic peaks. Corporate customer will also be able to send bulk messages via the internet. The messages will also be more focused because extended customer relationship management (CRM) facilities will enable the company to better target specific types of customers. “The introduction of bulk messaging services is a key component of Batelco’s strategy to enhance the services we offer our commercial customer base. Increasingly, businesses in Bahrain are considering short messaging as a vital customer communication tool, and our SMS enhancement initiative will increase the scope of messaging opportunities that we offer our corporate end-users,” comments a Batelco spokesman. Batelco will be using Logica’s Messaging Application Router (MAR) for improved load sharing and advanced traffic management through LogicaCMG’s SMSC (SMS centre). “Batelco’s new SMS enhancement initiative is at the forefront of regional telecoms operators’ efforts to expand the range of services being offered to the business community. As CRM becomes a more mature concept in the Middle East, SMS applications for corporate communication initiatives such as the one enabled by this latest Batelco initiative become important new competitive tools,” states Derek Kemp, LogicaCMG’s CEO for the Middle East. Mobile tariffs to fall in New Year (From the gulf-daily-news.com, December 30, 2002) - Breaking Batelco's monopoly could prove a double-edged sword for telecom customers in Bahrain. Opening up the market could push down some prices, especially for mobile telephone calls, but force others up, say sources. The Telecommunications Authority has invited applications from the private sector for a license to provide mobile telecommunications services, under the Telecommunications Law, which came into effect on October 23. Under the law, only one GSM license will be issued within six months from the effective date of the law and one or more licenses of this type after the lapse of two years from the date of granting the first license. The first successful applicant will compete with Batelco to meet fast expanding demand for mobile services. "This may result in a drop in mobile tariffs in Bahrain next year," sources told the GDN. "Batelco currently uses part of its profits from the mobile service to subsidize the fixed line services. To meet the competition from the new operator, Batelco may reduce its mobile tariffs, but there is a possibility for the fixed line tariffs to go up." Under the new law, no operator is allowed to cross-subsidize its services. "It is therefore possible that Batelco may rebalance or adjust all its prices," said sources. "Any price adjustments by the operators can, however, be made only with the approval of the Telecoms Authority, which is responsible for protecting the interests of subscribers and users in respect of the tariffs and quality of services." The license for a second mobile operator will be granted before next April. "Whoever wants to operate should have substantially all their infrastructure based in Bahrain," said the sources. The new operator will have the right to provide new "third generation" services, in addition to the present second generation of services that are based on the GSM protocol. "Though a third license can be granted only after two years under the new law, the authority may grant an additional mobile telecommunications license within two years if Batelco and the second licensee engage in anti-competitive practices," said the sources. Under the law, the authority will also grant one license before April next year for an Internet exchange. More such licenses will be granted after the expiry of two years from granting the first license. The provisions of the new law shall be applicable to all telecommunications, save for the radio frequency spectrum and telecommunications network and services by the BDF and all the security forces in the Kingdom. Bahrain sets its telecom liberalization blueprint (From menareport.com, December 16, 2002) - Bahrain’s recently enacted telecom law sets the final liberalization timeline for the communications sector in the country. The market is anticipated to be fully competitive in 2004. The establishment of an independent regulator is expected to initiate the liberalization process. The government of Bahrain issued a new telecom law in October 2002. The law stipulates the opening up of the communications market in Bahrain to other companies and ends Batelco’s current monopoly. A new report released to the Arab Advisors Group’s Strategic Research Service states that the Bahrain communications market will be fully liberalized by 2004. The GSM and the Internet markets are the first segments to open up for competition. The Bahrain Internet and Datacomm Landscape Report 2002 revealed that the Internet access revenues for the year 2001 stood at $ 21 million, contributing around four percent of Batelco’s total revenues. The Arab Advisors Group projects Bahrain’s GSM subscriber base to reach 625,000 in 2006, a penetration rate of 77 percent. In addition, the Telecommunication Regulatory Bureau of Bahrain will be financially and managerially independent. The bureau will be in charge of solving disputes between operators and also between the operators and agents. It will also be responsible for the granting of any new license and setting up the conditions and responsibilities of any new entrant, reported Arab Advisors Group’s analyst, Hala Baqain. “With the Bahraini communications market approaching a period of competition and liberalization, a strong regulator that is attuned to its roles and responsibilities is surely needed in the market. Proper competition requires a regulatory body that will spot any anti-competitive practices or unwarranted cross subsidies and act against them.” Baqain added. Multiple national fixed, ILD, VSAT, paging and radio trunking licenses will be granted after January 1, 2004. “The highlight of the liberalization of the Cellular segment in Bahrain involves the possibility of granting one or more Mobile Virtual Network Operators (MVNO) licenses.” Baqain noted. The law stipulates competition-enabling issues that are quite progressive and new to the Gulf region. Such issues include number portability, which is entitled to all users of voice services, fixed and cellular. The term Number Portability” means the ability of users of telecommunications services to retain, at the same location, existing telecommunications numbers without impairment of quality, reliability, or convenience when switching from one telecommunications carrier to another. Another privilege that is granted to users is the freedom to chose the service provider, this will entitle a subscriber to one network to chose a service from another network that it has an interconnection agreement with. The Arab Advisors Group’s team of analysts in the region has already produced more than 135 reports on the Arab World’s communications markets. To date, Arab Advisors Group has served more than 60 global and regional companies by providing research analysis and forecasts of Arab communications markets to these clients. Batelco and Omantel sign services MoU (From menareport.com, November 11, 2002) - Batelco and Omantel are teaming up to explore opportunities to provide specialist services to business customers. A Memorandum of Understanding (MoU) has been signed by the two companies to signal the start of a process that could lead to a joint enterprise. The move strengthens Batelco's commitment to serving multinational corporations in the Gulf in meeting their regional and global data-carrying needs. Batelco offers in the Gulf is its long-standing partnership with global-network operator Cable & Wireless, allowing to provide a global reach to business customers with international operations. The Batelco - Omantel initiative will revolve around international leased-line managed data services, virtual private networks (VPN) and Internet applications to facilitate e-commerce. Opportunities to collaborate on the delivery of other services may be explored at a later date. Omantel is the only provider of info-communications in the Sultanate. Batelco is currently the sole provider in Bahrain but is preparing for competition as the Kingdom's info communications market will be liberalized in a matter of months. Bahrain’s small telecom market may sustain another operator (From menareport.com, September 7, 2002) - Bahrain maybe underestimated for its small land area and population however its telecommunications market hosts one of the most profitable and successful operators in the region. The Bahraini communications market and its monopoly operator Batelco are capable of sustaining effective competition in cellular service, asserts a newly released report from the Arab Advisors Group. Bahrain’s communications market is rewarding, in yearend 2001 its total revenues exceeded $450 million. Voice services, GSM (Global System for Mobiles) and fixed, remain the mainstay services, as they constituted 68 percent of the Batelco’s total revenues in 2001. The Bahrain Communications Projections 2002 report shows that the signals from Bahrain are all positive for liberalization. The healthy state of the savvy and profitable Batelco means that the government will not fear for the operator from competition. Though, new entrants may have a lot to fear from Batelco should a fair regulatory regime be absent from Bahrain. Given the higher than regional average rates for Internet, datacomm and GSM services, and the limited options for customers, the Arab Advisors Group believes that these three segments may be the first to be liberalized in Bahrain. “The demand for the PSTN (Public Switched Telephone Network) services has leveled off. Batelco was able to serve the entire country by providing an integrated network that offers a wide portfolio of services. Bahrain will have marginal additions to the number of PSTN subscribers parallel to the growth of the natural households as well as businesses’ growing needs,” analyst Hala Baqain noted. The report shows that Bahraini GSM subscriber base is still growing. The number of mobile users who are between the ages of 14 and 21 has risen rapidly in the last two years, mainly due to the successful launch of the prepaid SimSim service in addition to the availability of cheaper handsets in the market. With this increase in the young generation users, the demand for personalized services such as downloading ringing tones and more sophisticated wireless Internet services will definitely increase. When implemented by Batelco, this will expand the revenue pie for Batelco and should be seriously considered by the future GSM competitor since competition will be based on competitive rates and the VAS offered. The Arab Advisors Group projects Bahrain’s GSM subscriber base to reach 625,000 in 2006, a penetration rate of 77 percent. Batelco fixes faulty service (from the gulf-daily-news.com, June 27, 2002) - BATELCO technicians worked flat-out over three days to trace and fix an SMS (short messaging service) fault, which was finally tracked down to the UK. The problem surfaced after some Batelco mobile customers reported that their SMS messages were not being received in the UK. A team of Batelco engineers worked about 200 man hours to rectify the fault, only to discover that it was buried deep in British Telecom's (BT) home system. SMS service to the UK was restored after Batelco engineers re-routed traffic away from the fault area. Senior manager, mobile operations David Wales said Batelco worked hard to fix the problem. "We realize how important SMS messaging is to our customers," he said. Bahrain's international mobile roaming with the UK was also affected but it was the interruption of SMS that set alarm bells ringing among customers. The next mobile sensation will be MMS or multi-media messaging service, which will allow users to send photos and other visuals to one another, said senior manager, mobile development Ismael Fikree. "MMS is looking quite exciting and should be available to Batelco customers later in the year," he said. "Interestingly, some mobile phone handsets come complete with a built-in camera so that users can, for example, take a holiday snap and send it to friends instantly anywhere in the world." Batelco launches high speed Web service for businesses (from the gulf-daily-news, May 20, 2002) - Batelco launched a high speed Internet service for business customers at the Regency Inter-Continental Hotel yesterday. Speednet, which is available over an ordinary phone line, provides Internet access at speeds up to 15 times faster than an ordinary dial up modem. Connection to the Internet is always up and running and large data files can now be downloaded in minutes. It will also allow customers to talk on the phone and use the Internet at the same time through a single phone line. Speed net relies on Asymmetrical Digital Subscriber Line (ADSL) technology, also known as broadband. Educational institutions will be able to use the service at a 50 per cent discount. Batelco is currently exploring the provision of Wireless-LAN (local area network) facilities at public places, such as Bahrain International Airport and hotel lobbies, so that laptop computer users would be able to plumb into an ADSL Internet connection by radio link, via a laptop accessory. Batelco has faced major challenges in making broadband available in Bahrain, said senior manager, informatics services Adel Daylami. The biggest issue has been the cost of fast, high-volume connectivity. About 70 per cent of all Internet traffic originating in Bahrain involves accessing data based in the US. Even Arabic-content websites tend to be hosted in the US. The cost to Batelco of the high bandwidth Internet connection with the US and Europe amounts to nearly BD3,000 daily. Another challenge was the relatively small market in relation to the high cost of infrastructure. Batelco will need to grow its Speednet customer-base significantly just to break even, said Mr Daylami. Bahrain Telecommunications Co. first quarter profits up 16% (May 1, 2002) MANAMA, Bahrain (AP) - Bahrain Telecommunication Co., or Batelco, said Wednesday its first quarter net profits for 2002 rose more than 16 percent to 14.9 million (dlrs 39.5 million) compared with the same period last year. Net profits in the 2001 first quarter were 12.8 million dinars (dlrs 33.9 million), the company said in a press release. The company attributed the growth to an increase in mobile telephone users following a reduction in rental and call rates last year. More than 330,000 people, about the Gulf state's population, use mobile phones, the company said. Batelco, which enjoys a monopoly in Bahrain, had budgeted dlrs 119 million in 1999 to upgrade its services. It has already invested dlrs 93 million on upgrading its telecommunications infrastructure.  Batelco is 20 percent owned by UK Cable & Wireless and 36 percent owned by the government. The remaining shares are listed on the Bahrain Stock Exchange. Mobile phone call costs cut (from the gulf-daily-news.com, December 26, 2001) - Mobile telephone customers in Bahrain will save an average BD2 to BD6 per month in their call charges, besides other reductions, with effect from next month, it was announced yesterday. The monthly rental charges will be reduced by up to 40 percent and call charges by up to 16pc to 26pc, starting on January 1, Batelco officials told a Press conference at the Regency Inter-Continental Hotel. Chief executive Andrew Hearn said the company would experience a significant drop in its revenue when the new reduced tariffs come into effect in the new year. "The reduction in mobile costs, in line with several rounds of cuts in IDD and data services tariffs over the past year, is an illustration of how Batelco has and will continue to pass on the benefits that it receives on to the customer," he told the conference, which was called to provide details of the recent announcement made by Transportation Minister and Batelco chairman Shaikh Ali bin Khalifa Al Khalifa on the new MobilePlus tariffs. General manager - products and services Ali Janahi said the number of MobilePlus customers in Bahrain had increased 10-fold to around 300,000 since it was first launched in 1995. "Approximately 46 percent of Bahrain's population are MobilePlus customers. In terms of penetration, Bahrain has the fourth highest percentage of mobile users in the Middle East, after the UAE, Kuwait and Lebanon," he revealed. "Batelco recently announced a BD9.7 million contract agreement with Ericsson to further expand the GSM network to 400,000 lines, over the coming six months. "Since 1995, Batelco has invested BD55m alone on the upgrade and maintenance of the mobile network." Out of the total 300,000 customers, Mr Janahi said about 220,000 are users of the prepaid SimSim services. He said this year alone Batelco has launched four new value-added services for the SimSim service. They are Mobile VoiceMail, credit card refill of SimSim accounts through the Customer Call Centre and the introduction of BD3 and BD5 credit vouchers. Batelco has also launched a new refill method for SimSim customers, through the National Bank of Bahrain's "national phone banking service". Mr Janahi said many more improvements and additional services were being planned for the future, such as roaming for SimSim customers and introducing Speednet to business customers. Senior manager - voice products and services management Hamza Ali, who made a presentation on the new tariffs, said the reductions would cover registration, per minute rates, monthly rental charges, SMS (short message service) tariffs, mobile voicemail access, "Internet Over Mobile" service as well as a number of miscellaneous services. "Mobile postpaid registration will be slashed by 43pc, from BD35 to BD20, and monthly rental charges by up to 40pc," he said. Package There are different reduction levels for high usage, regular and low usage customers.The monthly rental tariff of regular package customers, who constitute more than 80pc of the total users, will drop from BD10 to BD6. Depending on a customer's mobile package, post paid peak call charges will be reduced by 26pc and by up to 13pc on off-peak rates. For example, a regular user who now pays 45 fils per minute during peak time will now pay 38fils, and the off-peak rate will reduce from 32fils to 28fils. SimSim call charges will be reduced by 26pc. For the first time, off-peak rates of 47pc of the current per minute charge will also be introduced, bringing the peak rate to 70 fils per minute and the off-peak rate to 50 fils per minute. The current rate is a flat 95 fils per minute. The off-peak time for all mobile services is from 10.30pm to 8am. Mr Ali said a SimSim customer, who now calls for 105 minutes with a BD10 voucher, would now be able to call for 143 minutes during peak hours and 200 minutes during off-peak hours. There will be an adjustment to the January bill for the advance rental paid this month. Batelco and C&W offer niche service (from the gulfnews.com, October 24, 2001) - Bahrain Telecommunications Co (Batelco) in alliance with Cable & Wireless launched a global ATM (for asynchronous transfer mode) service targeted at multinationals. The service, said to be a first of its kind in the Mideast, will allow clients to access and transmit all types of data, including e-mail, streaming video, three-dimension images, and large file downloads at very high speeds. The Batelco service can provide connectivity from a single platform to 33 areas in over 22 countries. "Batelco's sophisticated Global ATM service enhances business efficiency and competitive positioning for companies in the banking and finance, oil and gas, media, electronics and IT sectors by enabling the transmission of data applications of up to 155 Mbps, thereby eliminating barriers of distance and location," said Ali Janahi, general manager for product and services at the Bahrain company. The countries that can be covered include the US, the UK, France, Germany, Italy, Japan, Hong Kong, South Korea, Russia and Australia, among others. "Corporate users can increase their business status and the level of services they provide, as well as considerable positions of strength on a global scale," he added. Tariffs for the service include a once-off installation cost and monthly charges, which cover the provision of a port, and a PVC based on requirements for access port speed and bandwidth. Batelco in GSM network expansion (from the itp.net, October 24, 2001) - HE Shaikh Mohammed bin Khalifa Al Khalifa, Ministry of Transport Under-Secretary and Batelco Board Director, has signed a BD 9,783,000 contract with Ericsson Radio Systems for further expansion of the country’s GSM network capacity. There are currently around 283,000 mobile customers in Bahrain, a market penetration level of 41%. The latest upgrade will allow network capacity to increase to 400,000 users “The mobile market is primary area of focus for Batelco,” said Andrew Hearn, chief executive, Batelco. “In the relatively short period that mobile telephony has been available in Bahrain, its rapid spread and development is evidence of the importance the company attaches to this state-of-the-art technology and its deployment in Bahrain for the benefit of all our customers.” The upgrade uses unstructured supplementary service data (USSD) technology, which will allow Batelco to introduce new services, such as SimSim roaming, voucher refill, balance enquiry and balance notification. The project includes the installation of two new gateway switching centres for mobiles and a base station controller, followed by the addition of 15 new radio base stations. This is expected to improve performance in Manama, Muharraq, Isa Town and Riffa. An upgrade to the GSM network software will allow for the introduction of future services based on GPRS and 3G technologies. Batelco cuts tariff on key communication services (from the dailygulfnews.com, October 1, 2001) MANAMA -Batelco yesterday announced tariff reductions on four of its major data communications services. The reductions vary with each service, but on average will total around 18.5 percent. "The tariff review is part of our ongoing initiative to deliver value for money services, and in line with directives from the country's leadership," explained Batelco acting chief executive Anthony Hart. Mr Hart said the new reductions, which come amidst celebrations marking Batelco's 20th anniversary, were a token of appreciation to loyal customers throughout Bahrain. He said Batelco, by virtue of its strategic alliance with its global partner, Cable and Wireless, was uniquely placed to offer a comprehensive, cost effective range of world-class managed data services so vital to large corporations. Mr Hart noted that Batelco's data communications services provide global end-to-end connectivity, one-stop shopping, and high speed, high volume data transmission critical to business transactions today. "In this regard, a number of major upgrade projects, aimed at enhancing the this network to provide faster, easier access and transmission speeds, are nearing completion," he continued. Mr Hart emphasised Batelco's commitment to its role as a facilitator and enabler of business in the region. "The provision of a world class service at competitive rates is important in attracting and developing Bahrain as a base for international business," he added. New and existing users of these services, specifically the International Private Leased Circuit (IPLC), Managed Data Services (MDS), Global Managed Data Services( GMDS), and the International Managed Private Line will benefit from the tariff reductions. International Private Leased Circuit (IPLC), which connects national and international organizations with an exclusive direct link (end-to-end connectivity), and handles voice, data, video and facsimile transmissions or a combination of the formats, will be subject to an average 14 pc tariff reduction. The International Managed Private Line (IMPL) service, which is similar but has the added advantages of diversity and network management, will benefit from an average reduction of 17pc. Also benefiting from this review, with average tariff reductions of nine pc and 34 pc respectively, are Managed Data Services (MDS), which facilitate end-to-end connectivity through Bahrain's digital data network, and Global Managed Data Services, which allow international connectivity and networking using frame relay technology. Mr Hart said Batelco believed the provision of cost effective, technologically innovative data communications facilities services was crucial to the success and sustained growth of both the business community and the national economy of Bahrain. "These latest reductions should impact positively on existing business operations conducted out of Bahrain," he added. "We hope they will serve as an enticement to encourage new customers to relocate and make use of the wide range of services on offer." Bahrain Telecom cuts intl call charges  MANAMA (Reuters) - Bahrain Telecommunications Co (Batelco) said on Saturday it would cut charges of international direct dialing (IDD) by up to 32 percent from September 1.  "IDD tariffs for both peak and off-peak periods are to be slashed by between 2 and 33 per cent, a Batelco statement said. "This percentage variation is attributable to the difference in the cost of providing the service from one country to another."  Batelco said IDD tariffs in Bahrain were among the least expensive in the region. The move comes hot on the heals of a similar cut by the United Arab Emirates telecom firm Etisalat.  Bahrain's government holds a 39 percent stake in Batelco, the country's sole telecom firm, Cable and Wireless owns a 20 percent stake and the rest is traded on the bourse.  Crown Prince Sheikh Salman bin Hamad Al Khalifa has said his country plans to open the sector to international firms in 2001 to end Batelco's monopoly.  Batelco posted a net profit of 28.5 million dinars ($75.6 million) in the first half of 2001 compared with 27.7 million dinars in the same period in 2000. Batelco announce profit increase (from the itp.net, August 23, 2001) MANAMA - Bahrain’s telecom monopoly Batelco is celebrating after announcing a huge leap in net returns in the first half of this year. Revenue and profits were also both up on the first six months of 2000. “Compared with the same period last year, the total revenue has grown by 14 per cent and the net profit before appropriation by 3 per cent to $75.6 million,” said HE Shaikh Ali bin Khalifa Al Kalifa, chairman of Batelco and Bahrain’s minister of transport. “This represents a return on capital employed of 24 per cent on an annualised basis. “These results are not a product of circumstance or chance,” he said. “They arise from a clearly defined vision and the implementation of a disciplined strategy towards the achievement of the corporate and individual targets we set within the group. This kind of achievement takes effort, energy and investment, and I believe that Batelco’s determined initiatives in this regard are evidenced in these results.” The rise in profits will come as a relief to Batelco, which is currently facing the prospect of losing its monopoly as soon as next year. After having the market to itself for 20 years, it will be looking to defend itself against coming competition. Batelco has spent the last 12 months strengthening its position, expanding its GSM network to cover 320,000 subscribers (roughly half the population, the same level of penetration as Germany), and adding capacity for VoIP calls in the near future. Batelco eyes ventures as Bahrain opens up telecom (from the gulfnews.com, August 2, 2001) - Bahrain's sole telecom provider Batelco said yesterday it was seeking joint ventures with other Gulf companies to prepare it for future competition as the Gulf Arab state opens up the sector. "We have a full team of people working full time looking for business opportunities outside Bahrain, primarily in Gulf Arab states," Bahrain Telecommunications Co. Chief Executive Andrew Hearn told Reuters in an interview. "We have a large sum of money in the bank for opportunities. We have 80 million dinars ($212.2 million). If we found the right opportunities, it would be very tempting," he added. Batelco is 39 per cent owned by the Bahrain government and 20 per cent by Britain's Cable and Wireless. The rest is traded on Bahrain's stock market. Earlier this year, Bahrain announced plans to open up its telecom sector to foreign companies by the end of 2001, without giving details. Hearn said that Batelco would lose some of its market share and was preparing for that day. "I agree that there will be pain. We will lose market share and we will go through a rough patch, but we have already made preparations," he said. "We have no problems with competition. Bahrain has a successful monopoly providing telecom, and a better way of doing it would be to have a successful competitive environment." Batelco, which has one of the most advanced networks in the region, already has joint ventures in Kuwait, Egypt, Saudi Arabia and Jordan providing Internet services and data communications. "We moved into Saudi Arabia because there are massive opportunities to build and expand the business. There is not much opportunity to build and expand business in Bahrain," Hearn said. Saudi Arabia has a population of about 20 million people, compared with Bahrain's 660,000. Hearn said Swedish telecom company Ericsson would expand Batelco's mobile phone network at a cost of around nine million dinars ($24 million). The deal, which will be signed in two weeks, will increase Batelco's GSM network capacity to 400,000 from the current 320,000 to meet growing needs in the Gulf Arab state, he added. The project is due for completion by mid-2002. Hearn said Batelco had recently doubled its capital spending to 40 million dinars annually to upgrade its telecommunications network and make it a global player. In February, Batelco said it signed two deals with Ericsson worth 3.7 million dinars to expand and upgrade the network. Batelco made a 28.5 million dinar net profit in the first six months of 2001 compared with 27.7 million dinars in the same period last year. Batelco signs one-stop-shop deal with Deutsche Telekom (from the itp.net, July 30, 2001) MANAMA - Batelco is extending its relationship with German-telcom giant, Deutsche Telekom. Bahrain’s PTT and the German carrier company have signed a bilateral agreement that extends the ‘one-stop-shopping’ (OSS) relationship between the two countries. The service is designed for both existing and new customers of Batelco’s International Private Leased Circuits (IPLC), and enables them to use Batelco or Deutsche Telekom as a single point of contact for international connections between the two countries. Customers will use a single, centralized billing and look to either Batelco or Deutsche Telekom as a single point of support. Typically, IPLC customers are multinational corporations, which communicate by using any or a combination of, voice, data, video or facsimile traffic, over a dedicated and direct link between its various offices. “The value-added service for Batelco's new and existing IPLC customers provides a host of 'one-stop-shopping' benefits: a single point of contact; a single end ordering; and a single end billing,” said Adel Al-Moallim, OSS product manager, with Batelco. “In essence, Batelco arranges the provision of an IPLC on behalf of the customer and provides full international connectivity to and from Germany, without the customer ever having to deal with anyone other than a dedicated Batelco or Deutche Telekom representative,” he added. Ericsson to expand Bahrain mobile network (July 5, 2001) MANAMA (Reuters) - Bahrain Telecommunications Co (Batelco) said on Wednesday it would sign a contract with Swedish telecom firm Ericsson in July to expand Bahrain's mobile phone network to meet growing demand.  "The plan is to increase the current network capacity to face the increasing demand on mobile lines," said Batelco's Corporate Public Relations Manager Ali Sahwan.  He said the project would be executed in phases over about 18 months, but gave no further details.  In February, Batelco, the only telecommunications services provider in the Gulf Arab state, said it signed two deals with Ericsson worth 3.7 million dinars ($9.8 million) to expand and upgrade the network. The expansion program, which was to increase Batelco's GSM capacity to 320,000 from 230,000, was due to be implemented by June.  Sahwan said demand for mobile phone lines in Bahrain rose 65 percent in 2000. The company estimates that 33 percent of the country's 666,000 population use mobile phones.  Batelco is 39 percent owned by the Bahraini government and 20 percent by Britain’s Cable and Wireless. The rest is traded on the Bahrain stock exchange.  Crown Prince Sheikh Hamad bin Isa Al Khalifa said earlier this year that Bahrain planned to open the telecommunications sector to foreign companies to end Batelco's monopoly.  Saudi press reported on Tuesday that Ericsson had won 60 percent of a $600 million contract to expand Saudi Arabia's mobile phone network by 1.1 million lines by the end of 2002. Lucent Technologies won the remaining 40 percent. Bahrain telecom grants free birthday calls (July 2, 2001) MANAMA (AFP) - Bahrain Telecommunications Co. (Batelco) on Monday granted every one of its 130,000 residential customers 26 dollars worth of free calls to celebrate its 20th birthday.  The 3.4-million-dollar splurge was a "symbolic gesture of appreciation towards our residential fixed-line customers", said Batelco chairman Sheikh Ali bin Khalifa Al Khalifa, quoted by newspapers.  Sheikh Ali said Batelco will also give its 2,100 employees, 95 percent of whom are Bahraini, a 100-dinar (260-dollar) bonus on their July pay packets.  "Later this year, we will be announcing further tariff reductions on international direct dial calls which will benefit the business sector and various customer sectors," added Sheikh Ali, who is also transport minister.  The Bahraini government has a 39 percent stake in Batelco, with Britain's Cable and Wireless holding 20 percent and the remaining 41 percent publicly traded.  Bahrain's crown prince, Sheikh Salman bin Hamad Al Khalifa, vowed in February that the government would break Batelco's monopoly of the telecommunications sector. Bahrain prepares to open up telecoms (from itp.net, April 28, 2001) - Bahrain’s economy is continuing to open up to the outside world, with two major developments in the last month. First, the government announced that, when the telecom sector is finally deregulated, overseas firms will be allowed to bid for a stake in operating companies. Describing the legislation that will open up telecoms, Transport Ministry undersecretary Sheikh Mohammed bin Khalifa Al Khalifa, said that it will “provide the required legal basis and the guidelines for foreign companies that are interested in entering the Bahrain market.” At the same time, the Shura Council approved a draft law creating a ‘master plan’, which provides guidelines for the privatization of government services. It has now been submitted for cabinet approval, which, as CommsMEA went to press, was expected to be granted shortly. As part of the plan, a Supreme Privatisation Council will be bet up, chaired by Prime Minister Sheikh Khalifa bin Salman Al Khalifa. It will oversee the planned sell-offs of many government services. Council members will include the ministers of finance and national economy, commerce, oil and industry, and labour and social affairs. They will be joined by five representatives of private industry, described as “experts in privatisation.” The council’s main task will to formulate privatisation plans and set a timetable for the proposed sales. Under the proposed law, members of the Shura Council, their employees and members of their families will be banned from running companies that take over government services. Meanwhile, anyone working for the newly-privatized companies will be guaranteed their jobs for at least three years with the same benefits they receive at the government. Three-day Arab forum to explore telecoms issues (from the bahraintribune.com, March 23, 2001) - The three-day Arab Telecoms Forum 2001 will be held from March 27 to 29 at Le Royal Meridien Hotel. Held under the patronage of the Minister of Transportation, Shaikh Ali Bin Khalifa Al Khalifa, the event – the second of its kind – is being organised by the Bahrain Society of Engineers (BSE) and the Federation of Arab Engineers, in association with the Institution of Electrical Engineers (Bahrain centre). With the theme of “Arab Telecoms at the Crossroads”, the conference is expected to explore current and future issues in the field of telecommunications and information technology. Keynote speakers from the industry, professional institutions, product suppliers and research centres will address the issues. The speakers include Sam Bahour, Managing Director of Applied Information Management, Palestine, who will speak on “Development of the Palestinian Telecom Sector”; Ola Ramnebro of Ericsson centring on “Next-generation Networks”; Marwan Juma, Chief Executive of Batelco-Jordan, whose topic is “Internet Service Development in Jordan”; and Dr Salah Al Majdoub, University of Bahrain, who will make a presentation entitled “Towards an e-government in Bahrain”. “It’s always been the endeavour of the BSE to present the latest developments in industry and in the technological arena to professionals in the Arab world”, commented A. Majeed Al Gassab, Society’s Vice-President and Organising Committee’s Chairman. “The world of telecommunications is a rapidly changing one where telecommunications organisations have to be aware not only of technologies but also of the marketing skills needed to maximise the investment in these expensive hardware and software. In the Arab world, we’re users of technology which we’ve so far adapted very profitably to our culture. In order for this momentum to continue, we need such conferences to set the pace.” Sessions are divided according to topics to be addressed: telecoms, Internet regulations and policies; next-generation networks, Internet development; IT and data, e-Business, e-commerce, e-government; mobile-service applications and development; 3G mobile-service development and beyond; online and value-added services and, finally, network-solutions applications. An exhibition will run alongside the show to highlight changing technologies and their potential. For more information, contact the BSE (727 100) or e-mail mohandis@batelco.com.bh. Bahrain to end telecom monopoly (from Gulf News, February 6, 2001) Manama - Telecommunication services will no longer be a monopoly in Bahrain, and consumers are in for a better time, according to Crown Prince Sheikh Salman bin Hamad Al Khalifa, who is also Commander in Chief of the Bahrain Defence Force (BDF). He declared that the government will open the telecom market to all, including international companies, this year. "The main beneficiary will be the consumers," said Sheikh Salman, who is personally overseeing the opening up of telecom market and the transition together with Transportation Minister Sheikh Ali bin Khalifa Al Khalifa. "It is everyone's belief that the time has come to end this monopoly and open up the market to suit the need of the time," he said. At present Batelco is the sole telecom company. "This is a monopoly and we are against all monopolies as the island is opening up its market to pave the way for solid growth. In fact the decision to end this monopoly and open up the telecom market was taken after the National Action Charter was submitted on December 23. Now we are in the first week of February and this shows we are moving fast," Sheikh Salman said. back to the News Center

HOME	About HATIF | Quality Products | HATIF News | Contact Hatif | Site Map