Telecom industry posts 6.5pc revenue growth

There were 1.6 million mobile phone subscribers in Bahrain by the end of 2010, it has emerged. Nearly 80 per cent of these were using pre-paid services, the Telecommunications regulatory Authority (TRA) has said in its 2010 annual report. This is an increase from 1,401,974 subscribers in 2009 and 300,829 in 2002, the report said, this was published here today at English daily '' the Gulf Daily News''. TRA chairman Dr Mohammed Ahmed Al Amer said mobile penetration also increased from 45pc in 2002 to 127pc last year, which is one of the highest in the world. The report says while there were only 15,000 broadband subscribers in 2002, the numbers rose to 200,000 last year. Dr Al Amer said the industry as a whole recorded a 6.5pc growth in revenue in 2010 and, coupled with falling prices for broadband services, contributed towards the positive growth trends, signalling the success of Bahrain telecommunications policy. "There was also an 11pc increase in mobile subscribers and a 27pc increase in broadband subscribers during the year," Dr Al Amer said. "The continued positive growth trends were supported by decreasing prices for broadband services accompanied by the launch of the third mobile operator and the introduction of faster broadband. "We have also continued on putting in place measures necessary to further boost competition and to maximise the potential benefits for consumers and the economy in the coming years." Dr Al Amer said the TRA's commitment to achieving an open access model and the transparency with which decisions are reached gives clear direction and confidence to both operators and investors. "Bahrain now has a highly competitive mobile market, comparable to the best in the world, delivering choice, lower prices and diversity of services for the consumer." He said there is increasing maturity in the competitive nature of certain markets such as mobile retail services and calls to certain international destinations required TRA to use the competition-based provisions of the Telecommunications Law for the first time during 2010 and to introduce new regulatory measures. "In February, we were able to introduce a framework based on a competition test for regulating retail tariffs - a first in the region and in other parts of the world and then in June, it was necessary to take swift and firm action to stop potentially unfair competition from damaging the international calling market and launch an investigation into potentially unfair competition." He said the TRA had been called on to stop illegal call shops, arbitrate and determine terms between operators and take a number of other enforcement actions throughout the year. He said the number portability and local loop unbundling will encourage more competition in the local market. "Users may have a considerable personal and business investment in their telephone number which results in a strong reluctance to lose it despite the attraction of a package of services from another provider that might suit their needs better." He said the local loop is the last link in any fixed network - from the local exchange to the customer's premises. "This is usually copper wires owned by the incumbent operator. However the cost to construct an alternative local loop infrastructure is considered by most operators to be prohibitive and consequently a barrier to entry." Dr Al Amer said the future looked promising for international and broadband services too. "Resolving the issues around access to the FLAG subsea cable landing station and the prospect of at least a further two international cables linking Bahrain by the end of 2011, in addition to the three already in place and our satellite stations, should provide significant opportunities for further broadband price reductions and speed increases." He said 2011 would see further substantial changes in the development of the telecommunications sector with a number of key milestones being achieved. "The last eight years have witnessed dramatic changes as liberalisation has occurred and consumers have experienced the advent of competition bringing world-leading modern services in many parts of the market. "Now we have begun to be able to step back, in certain markets intervening only where necessary, confident that telecommunications is enhancing life for residents as well as business and economic growth - and progress towards realising the objectives of Bahrain's Economic Vision 2030."