MANAMA, 26 November 2004 — Millions of Bahraini dinars have been pumped into the economy by opening up Bahrain’s telecommunications, a top telecommunications expert said.
“The step has created new jobs and provided a variety of choices and better services to the public,” said Telecommunications Regulatory Authority (TRA) general director, Andreas Avgousti. “Bahrain still has a long way to go in becoming a well-developed competitive market,” he said.
The Telecoms Law, passed in October 2002, initiated the liberalization of telecoms market in Bahrain. “Initially there were speculations that liberalization would have a negative impact on the telecoms industry and Bahrain’s economy,” he said.
“By setting up TRA as an independent regulator with clearly defined powers and responsibilities, the Bahraini government has changed a monopoly environment to a liberalized environment.” “By following an open door policy, being an impartial entity, TRA has been able to protect both the consumers and the competition.”
In Bahrain, the operators and the regulator are now working together in a professional and responsive manner. There were already positive signals from both the incumbent Batelco and the newcomer, MTC-Vodafone.
“Batelco’s profits have increased significantly. According to latest figures, the profits have increased by 10 percent over the same period last year to BD64.7 million. The liberalization has also increased the company’s efficiency.” “MTC-Vodafone’s market shares have risen to 13 percent,” he said.
Avgousti said that the liberalization had stimulated the economy with new investments and new jobs. “There has also been an increased activity in various commercial areas,” he said. “Advertising expenditure increased by 42 percent to $65.9 million. To become a well-developed competitive market, Bahrain should introduce more innovative services, said Avgousti. “There should also be targeted services addressing the specific needs of businesses and residential customers,” he said.
“Although the operators are adapting to the new regulatory environment, there are areas needing improvement. These include: working within deadlines, presenting accurate relevant information and evidence, improving the understanding of regulatory requirements and obligations, compliance and playing within the rules.”
