MANAMA, 6 July 2007 — The public sector being a major purchaser of telecommunication service needs to select the service provider through a process of tenders or open bidding, a senior official at the Telecommunication Regulatory Authority (TRA) said yesterday.
Alan Horne, who discussed the TRA plans at media briefing, said that it was in greater national interest to introduce a system based on fair competition at all levels as part of the national strategy. “We feel that government being the major purchaser of the telecommunication service should rely on a process of tenders etc. by looking into two specified areas, firstly, the expression of ideas and solutions from all telecom players, and secondly, who can deliver better service. These are two key areas and through an open and transparent system it should be decided who would get the business.” He said that the Kingdom would be moving toward generic or unified licenses for the telecom sector as part of strategy bringing the national telecom sector in line with the global trends.
“Batleco alone holds about 11 types of licenses and the generic form will enable the licensee to use multiple services making it much easier to deliver services.” Alan, who was joined by his top management team, also clarified that the TRA has no plan to increase the license fees and would continue to maintain 1 percent of gross turnover of licensees. He said that above one percent income from auction of licenses, etc. was reverted back to the Ministry of Finance. “There are no immediate plans to enhance the fee at this stage ... and will continue the one percent fee regime.” He said that the TRA mandate and working was based on an absolute transparency.
Talking about the Batelco and the TRA outstanding issues, he said both were looking eye to eye on all major issues. “The Telecommunications Regulatory Authority has approved today Batelco’s proposed 50 percent reduction of 256 kbps internet broadband tariff for business users, as well as the proposed promotional 50 percent tariff reduction for higher rates. In order to ensure that implementation of the proposals do not hinder competition in the telecommunications sector, TRA requested that the wholesale access price, which other operators pay to Batelco for 256 kbps product is reduced in order to allow sufficient possibility for operators’ to cover their retail costs, and therefore enable other operators to provide competitive internet services.”
TRA also requested that all advertising and promotional materials of the promotional 50 percent reduction offer for broadband business users, should carry clear information on the offer conditions and its time period.
TRA also made clear that offers should not lock customers in one-year contracts.
He added: “TRA welcomes Batelco’s move to lower prices of broadband telecommunications services. We are happy that efforts to liberalize telecommunications market are delivering the results, by offering more affordable telecommunications services to the customers. However, we consider this reduction to be just a step in the right direction and TRA will continue making efforts aimed at bringing prices of telecommunications services, important for citizens and businesses of the Kingdom, down to internationally acceptable levels. We believe that a reduction in broadband tariffs will encourage the small business enterprises to take up higher speed internet services, which will better support their businesses, and in turn support economic growth.”