MANAMA, 30 October 2007 — Bahrain Telecommunications Co. (Batelco) plans to invest nearly $4 billion to expand overseas through buying telecom operators rather than bidding for licenses.
“There are not many licenses being offered in the Middle East,” said Chief Executive Officer Peter Kaliaropoulos. “If you want to grow you have no option but to acquire existing operations.” “We are planning big acquisitions worth $2 to $4 billion to buy companies of the size of Batelco,” Kaliaropoulos said.
Domestically, Batelco announced its plans to invest $16 million to expand its broadband network offering voice, and data services to the whole country by August 2008. The expansion will include adding the towns of Al-Jazaer, Al-Wadi, Awali and Sakhir, to its broadband network. The total of cost the project will amount to $57 million.
“International roaming agreements with 338 operators worldwide have been established to support customers in Bahrain whilst abroad. Great offers for Bahrain’s consumers and business customers were announced recently when prices for IDD calls to GCC states were slashed to only 100 fils per minute, reduced from 160 fils peak and 140 fils off-peak,” Kaliaropoulos said.
Batelco made a record $207 million net profit for the first nine months of this year. However, the growth was entirely on the back of its overseas operations, with zero growth in the home market, said the company.
Kaliaropoulos said the company will continue its expansion drive through targeted acquisitions of other operators and licenses. He said that Umniah, Batelco’s Jordanian subsidiary, now had 1 million subscribers while its Sabafon business had grown to be the largest GSM mobile operator in Yemen, with more than 550 base stations across the country.
Batelco is under increasing pressure from Bahrain’s telecom watchdog to allow competitors to use its infrastructure in providing services.