TRA Bahrain issues a decision that will encourage investment in international connectivity and promote Bahrain as a data hub

Mobilk - In an effort to further promote investment in telecommunications in the Kingdom of Bahrain, the Telecommunications Regulatory Authority today issued a decision on pricing and other terms for Batelco’s international connectivity services. The determination aims to ensure an efficient international connectivity market, as well as encouraging and enabling telecoms companies to invest in international cable routes that land in Bahrain.

The Authority undertook a market review of international connectivity, given its significance for international digital services and because of the concerns raised by licensees. The review highlighted, among other things, the high prices that licensed operators pay for international connectivity services in Bahrain compared to other countries. 

The review also found that Batelco controls access to three out of four submarine cables landing in Bahrain. As a result of the review, the TRA has imposed new regulatory measures on Batelco including price regulation that will enable Bahrain to compete more effectively with neighboring states, by making it more appealing to users of services that rely on international connectivity. The measures also aim to promote higher levels of telecoms investment in the Kingdom of Bahrain. 

Commenting on the decision, Mr. Philip Marnick General Director of TRA Bahrain stated: “Bahrains goal  to enhance its position as a digital and data service hub is reliant on the availability of a broad range of good quality international connectivity options at fair prices. The Authority believes that this price regulation will permit Batelco to make a reasonable return on existing investments while allowing both them and other operators  to invest in new international connectivity services in the future. It will also enable other licensees and businesses to benefit from significant savings when buying international connectivity or other services that rely on it.”

Adding to the statement, the General Director assures “Good International connectivity is key to ensuring Bahrain meets its strategic telecommunications objectives.  Network resilience and the availability of alternate routes, are more important than ever. The Authority believes that these price terms will eliminate any potential barriers to service entry and will allow telecoms and data service providers to provide their consumers with resilient services at competitive prices”