Bahrain at the forefront of Arab countries in Liberalization of Telecommunications Sector Bahrain an Example of Liberalization in the Sector praised by World Bank

Mobilk - The World Bank has published a report on the status of broadband services and infrastructure across the Middle East and North Africa region.  The report, entitled “Broadband Networks in the Middle East and North Africa; Accelerating High-Speed Internet Access”, examines the competitive and regulatory environments in the MENA countries, and emphasizes the need to promote competitive markets in order to stimulate demand for value-added services and to drive future broadband development.

According to the report, Bahrain has been at the forefront of liberalization in the MENA region. Across the region, only Bahrain and Jordan have implemented a policy of full liberalization in telecommunications, and Bahrain is the only country in the region to have adopted a market structure and regulatory model similar to the European Union (EU). Bahrain is the only MENA country which has reached the mature stage in fixed and mobile broadband market development.

Regarding broadband prices, the report states that the price of broadband services plays a critical role in terms of broadband diffusion. According to the International Telecommunication Union (ITU), broadband penetration grows rapidly after the level of retail broadband price falls below 3–5 percent of average monthly income. Based on the report, Bahrain prices expressed as a percentage of GNI are below the threshold. 

In a quote, Chairman of the TRA, Dr. Mohammed Alamer stated that “These observations by the World Bank are consistent with the Authority’s recent market assessments which have refined the scope of the regulatory framework in Bahrain.  For example, in 2013, the Authority concluded its review of international capacity into Bahrain, and found that the wholesale market was competitive due to a number of competing submarine and cross-border cables.  In 2014, the Authority found the residential/SME broadband market to be competitive due to increasing competition between DSL, Wimax, and mobile broadband services, and as a result, the regulatory obligations that had been imposed on Batelco were removed.  This has provided greater flexibility to Batelco in terms of its retail and wholesale broadband services, which has resulted in significant enhancements to DSL broadband offers in Bahrain.” He continued on in saying “We are committed to continue in this mission to promote competitive and efficient markets through investing in our people to develop a professional, passionate team; transparency and fairness in operations; and adherence to quality assurance.”

A number of specific observations by the World Bank on the development of the broadband market in Bahrain are particularly noteworthy.  The World Bank acknowledges that Batelco has faced increasing infrastructure-based competition in the supply of fixed broadband services, as a result of Wimax-based competitors, resulting in a reduction in Batelco’s market share of fixed broadband subscriptions to less than 30%.  Mobile broadband has also grown strongly, with Bahrain having the highest mobile broadband penetration in the MENA region.

The report also refers to competition in the supply of international connectivity into Bahrain, both in terms of terrestrial and submarine cables.  According to the report, Bahrain enjoys competition in international submarine cable connectivity, and has the highest submarine cable design capacity per capita in the MENA region.

Commenting on the Report, TRA General Director Mr. Mohammed Bubashait said “We are delighted that international organizations such as the World Bank continue to recognize the steps that have been taken in Bahrain to stimulate competitive markets. It is an honor that the liberalization path and the model adopted by the Authority is being regarded by the World Bank as an example to be followed, which is what the Government’s vision aims at, among other things. We would like to express our deep thanks and appreciation to the Government for their significant attention to the sector which has a direct impact on the national economy. As part of the Authority’s mission is to continue to build as an exemplar regulator within the region, we are pleased to see the achievement of this mission.”