• 26Jul

    Bahrain, one of the first countries to deregulate its telecom sector, will also be the first country in the Middle East to be covered 100 per cent by the state-of-the-art wireless network WiMax to be deployed in the Kingdom by the US giant Motorola for Mena Telecom.

    Mena Telecom, a subsidiary of Kuwait Finance House (KFH), signed a major agreement with Motorola Inc to plan, deploy and manage a nationwide 802.16e-based mobile WiMax and IP Multimedia Subsystem (IMS) network in the Bahrain.

    Abdulhakeem Al Khayyat, chairman of Mena Telecom and general manager of KFH, who signed the agreement with Motorola’s vice-president Middle East & Africa Networks and Enterprise Ali Amer, told a Press conference that the Kingdom’s attractive telecom sector would help to elevate the standard of services and also to attract foreign investments.
    Read more…

  • 17Jun

    The Bahrain Internet Society will be hosting Fahad Al-Shirawi, the managing director of 2Connect at the BIS’ premises in Umm Al-Hassam tomorrow evening (18 June) from 1900 - 2100 to talk about his company’s offering Internet for free in Bahrain.

    The BIS’ telephone number is 1782 2099 and their email is club@ic.org.bh for more information and directions.

  • 12Jun

    Bahrain-based telecommunications firm 2Connect is to offer free Internet access to residential customers as it starts the roll-out of a wireless service it hopes will soon cover the entire country.

    The company has already launched the service in Riffa, with A’Ali and Juffair to follow within days, says managing director Fahad Al Shirawi.

    “We are going to deliver free Internet access to everyone in Bahrain - to anybody that wants it. We will obviously start area by area and we will take it form there and cover the whole country,” he said.

    Mr Al Shirawi said 2Connect was offering a 256kbps speed with a 2GB threshold for free, in the hope that some customers who want a better service will later pay the firm to upgrade to another package.

    “Obviously I am not going to give unlimited Internet access free of charge - what I am going to do is offer Batelco’s BD10 package free of charge. A BD120 a year saving for a family that can’t afford it is a lot of money,” he said.

    Mr Al Shirawi said the only “minor catch” for a customer would be that they would have to buy their own modem, but after that there is no further cost and users simply log-in each day using details provided by the firm.

    He also stressed that the service would not be like other free Internet services that depend on frequent ‘pop-up’ advertisements for revenue - with just a single advertisement for 2Connect when a customer logs in and then uninterrupted browsing.

    “It is not going to be one of those annoying multi pop-up advertisements, none of that is going to be there,” said Mr Al Shirawi.

    How quickly the service advances from its initial launch districts to cover the whole of the country will depend on demand, he added.

    “The quicker people sign up, the quicker we will expand the network,” said Mr Al Shirawi.

    He admitted the firm stood to make a loss on the project and revealed it would be exclusive to Bahrain and not be repeated in other regional markets in which the firm is active.

    “This is a gift to Bahrain - we will offer attractive Internet connectivity to other parts of the region but at the end of the day we are not a charity, we are a business. We want to make money so we can’t really give it free to everybody,” he said.

    Mr Al Shirawi also called for other telecom companies in Bahrain to follow 2Connect’s lead and offer free Internet to residential customers.

    “I would like to see all my competitors do the same and give free Internet to the users,” he said.

    “At the end of the day competition should make money from other avenues of business - from the person’s phone-line, from other value-added services that they use such as IPTV and the like. There are so many channels out there that are still not even broadcast here.

    “There are so many ways to make money, there is no need to charge for everything.”
    GDN - 12 June, ‘07

  • 12Jun

    Batelco new ADSL package details

    BATELCO is slashing Internet charges for business customers by up to 50 per cent, it was revealed yesterday. The new tariffs, aimed to accelerate Bahrain’s e-competitiveness, are expected to come into force within a month, subject to Telecommunications Regulatory Authoritys (TRA) approval, said Batelco chief executive Peter Kaliaropoulos.

    “Batelco is confident that the TRA, following careful consideration of our submission, will approve the tariffs that we have proposed, without conditions,” he told a Press conference at the company’s headquarters in Hamala.

    “Businesses, ministries, educational institutions and charities will receive a significant benefit through 50pc lower Internet tariffs.

    “Customers will benefit, competition will be stimulated and Bahrain’s economy and competitiveness will also ultimately improve.”

    Batelco is ensuring that Bahrain accelerates its efforts to create a knowledge-based, information-technology driven e-commerce society, unrivalled in the region, by introducing new broadband services and significantly lower prices, said Mr Kaliaropoulos.

    “Information and communication technology (ICT) and e-services can complement the kingdom’s financial sector in accelerating Bahrain’s future economic growth,” he noted.

    “To enable businesses and ministries to embrace the advantages of electronically delivered services, the availability and cost of high speed broadband connectivity is crucial.

    “Batelco has, therefore, introduced new managed data services and reduced its prices for business broadband by 50pc.”

    This will create the most competitive rates for high speed dedicated Internet access across the GCC, said Mr Kaliaropoulos.

    “Online delivery of services and information by ministries and businesses, not only creates a sustainable, knowledge-driven economy but also creates high value jobs and encourages innovation in creating and delivering content via portals and fixed and wireless devices,” he said.

    “Fixed and wireless broadband technologies introduced by Batelco and now, extremely competitive Internet access services, are crucial components for regional leadership in e-services.”

    Batelco understands the needs of its customers for faster, cheaper and reliable broadband services, said Batelco director business marketing & international operations Adel Daylami.

    “We are offering new and upgraded deals for business customers under the theme Business Benefits with tariff reductions, new services and better service,” he noted.

    To ensure business and educational establishments benefit from the most competitive prices in the region, Batelco has reduced the rates of its Inet Dedicated Access Service (IDAS) by up to 50pc.

    Batelco is also keeping the needs of small businesses in mind with a competitively priced Broadband Business package, which provides Internet access for single-users.

    Rental for this package will be reduced from BD40 to only BD20 per month.

    Mr Kaliaropoulos said Batelco had submitted revised tariffs with the TRA .

    Batelco has invested BD40 million over the past two years to strengthen its broadband infrastructure, he said.

    This includes BD20m towards the new generation network, BD15m towards strengthening the international cable capacity, BD3m for the new data centre and BD2m towards the Internet platform.

    Currently, there are 50,000 broadband residential customers, and 4,500 business customers.

    Since the introduction of a BD10 monthly Internet service package for residential customers in October last year, there has been a substantial increase in the number of people using the Internet in the country. “We expect 20pc of the market share to go to other companies entering the market,” said Mr Kaliaropoulos.

    Mr Kaliaropoulos said Batelco was close to reaching an agreement with the TRA on charges for new licensees accessing its network.

    GDN - 12 June, ‘07
    Al-Waqt - 12 June, ‘07
    Mahmood’s opinion: Batelco feeling the heat!

  • 06Jun

    The complaints recently made by Batelco’s chief executive are outrageous and nothing more than a disingenuous effort to bully the telecom regulator and exploit the consumer.

    In the past five years, Batelco has earned a total of BD377 million ($1 billion) and despite increasing competition the National Bank of Kuwait (NBK) estimated in a research report last month that the operator would earn BD545m ($1.5bn!) over the next five years.

    In the same report NBK calculates that a standard measure of revenue known as blended ARPU (Average Revenue Per User) shows that Batelco’s customers pay an average of more than $42 per month compared to $26 in Taiwan, $27 in Portugal and $33 in Greece.

    Batelco’s operating profit margins of around 38 per cent are almost double the average of its international peers and among the highest in the world.

    Such figures should not surprise Internet surfers that they are paying twice the price for half the speed offered to customers in Asia or the businessmen whose monthly roaming bills have become a considerable overhead.

    Veiled threats about possible job losses and higher prices to consumers are desperate and disgraceful.

    The company has done very well from its home market and now commands an enormous stock market value of more than $2.5bn built on our phone bills.

    The idea that it would be better for the company to invest overseas is laughable when it has a limited track record of operating internationally and only in highly-regulated markets.

    The company shows little appreciation for the fact that the local telecom regulator has yet to impose number portability or that competition is so light that it has not been required to offer the subsidised-handsets that are common in many countries.

    Batelco has only yielded its position under pressure and it is understandable that it does not welcome the idea of providing better services at lower prices.

    Batelco’s loyal customers have paid plenty and it’s time for payback!

    Tarek Fadlallah


    Batelco Chief Executive Peter Kaliaropoulos said : “Batelco and many telecommunications companies around the world have made substantial profits over many years - this is a fact. These profits are then used to return dividends to shareholders, re-invest in infrastructure, new technologies and services, fund overseas expansion or acquisitions in related business such as content-related ventures and donation to numerous community and philanthropic causes.

    “We should all be proud that Bahrain has one of the best telecommunications networks in the world. This has happened through careful planning and significant re-investment of profits. Batelco, irrespective of regulatory conditions, will continue to invest heavily in Bahrain. In 2006 alone, Batelco invested, some $92m in Bahrain’s infrastructure.

    “Batelco will focus more in the future on delivering better services at lower prices to businesses and consumers in Bahrain. This will come about following completion of significant investment programmes in international cable systems, Kingdom-wide New Generation Network, IP-enabling technologies, new data centres, new internet platforms, new VSAT infrastructure, cabling of new industrial and housing estates and many other such programmes. Prices have come down for internet access - some of the lowest prices in the Middle East - lower IDD prices and lower business costs for voice and data. Prices will continue to be revised based on the completion of investment programmes and lower operating costs. Customers will continue to benefit, through lower prices and more choice from Batelco and other telcos in Bahrain.

    “The NBK report into Batelco’s ARPU is misleading. Batelco’s blended ARPU is a lot lower than what NBK has estimated … and compares very well with the ARPU’s of countries such as Taiwan, Portugal and Greece with a combined population of 45m consumers in their home markets which enable them to apportion network costs more efficiently than Batelco in Bahrain with approximately 800,000 people.

    “Batelco today has operations in six countries - all competitive markets - and is very much aware of consumers’ ongoing preference for better quality and lower prices. We have done so in the last three years and we are listening to our customers who continue to expect even lower prices - we will not disappoint them. We believe ultimately our customers’ ongoing loyalty will help us build a stronger and profitable company all Bahrainis are proud of!”

    Appeared in the Letters page in the GDN on 6 June 2007

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