MANAMA, 21 August 2007 — Bahrain’s telecom sector is booming as penetration of mobile reaches 100 percent, with 11 percent of users possessing more than one mobile connection. Around 50 percent calls are made using mobile phones, with less than 10 percent of international calls being made from Internet shops, mainly by Indians, the kingdom’s Telecommunication Regulatory Authority (TRA) said.
However, there is a huge room for improving all services vis-à-vis introducing more competition in all categories of telecom services in the kingdom, TRA added.
A consumer survey conducted AC Nielsen, a consultant commissioned by the TRA, provided a comprehensive view of residential and business consumers in the Kingdom.
Alan Horne, general director of TRA, said: “It is clear from this survey that competition has developed in the mobile and international calls markets, particularly to destinations such as India. However there is still a need to increase the consumers’ awareness of the different alternative providers and for the advancement of new innovative services which can assist in business growth.”
“TRA supports all licensees in their educational and public awareness activities to improve the take up of services. TRA has also to address its own profile among consumers and explain how it can support consumers in overcoming any issues they may have with suppliers. TRA has to remove the remaining barriers to allow competition across the broad range of telecommunications markets and support this vital sector to grow. A wider choice of telecommunication services and enabling consumers to easily switch providers will support the further development in terms of quality of service, innovation as well as competitive prices,” the TRA chief noted.
Horne also gave an overview of the findings of a consumer survey of the usage of telecommunications services in Bahrain.
The consumer survey was conducted as an input into a strategic market review which TRA plan to release by the end of August for consultation on proposed retail market definitions and remedies to promote competition in those markets in which competition has not yet developed.
The survey showed that the adoption of mobile telephony by residential consumers is high, with mobile penetration at virtually 100 percent of households, and 11 percent of individual having more than one phone or SIM card. At the same time, fixed telephony remains important; with approximately two-thirds of surveyed households having a fixed line, and 52 percent having Internet connection.
The survey revealed that 93 percent of businesses consider retaining the old number when changing providers important or very important. For business consumers, the survey showed that 100 percent of businesses used a fixed line, 64 percent used mobile services, and 67 percent had Internet access. The findings indicated that the data market is yet to fully develop, showing that only 9 percent of businesses surveyed used data services, 8 percent used e-applications and only 5 percent used information and communications technology solutions.
As far as Internet is concerned, the survey showed that consumer’s acquisition of Internet services is slow and Internet charges are still considered expensive. More importantly, the present speeds and prices will discourage the growth of more sophisticated uses of the Internet.
The survey showed that most consumers are satisfied with the quality and reliability of the telecom services they use, but are also considerably critical of the prices they have to pay, particularly for international calls.
The overall results of the survey showed that consumers in Bahrain are still learning about the capabilities of telecommunications, and they have little awareness of the various service choices available.
The consumer survey is the first of its kind to be conducted in Bahrain, and was undertaken by the independent international consultants Nielsen. It showed the usage patterns and awareness of telecom services provided in Bahrain. The survey compiled important information and statistics on the usage of fixed and mobile telecom services, covering a representative sample of 1,052 residential consumers and 159 business consumers. The complete and detailed results of the documents of the survey can be found on TRA website (www.tra.org.bh).