annual report 2009 - TRA - Telecommunication Regulatory Authority

SETTING THINGS STRAIGHT
ANNUAL REPORT 2009

- P.O. Box 10353
Manama
Kingdom of Bahrain
- Tel: +973 17 520000
- Consumer line: 800 88888
- Fax: +973 17 532125
- E-mail: contact@tra.org.bh
- Website: www.tra.org.bh

His Royal Highness Prince
Khalifa Bin Salman Al Khalifa
The Prime Minister
His Majesty King Hamad Bin Isa Al Khalifa
The King of The Kingdom of Bahrain
His Royal Highness Prince Salman Bin
Hamad Al Khalifa
The Crown Prince and Deputy
Supreme Commander

CONTENTS
Our Vision, Our Mission 1
Board of Directors 2
The Telecommunications
Regulatory Authority (TRA) 4
Chairman and Acting General
Director’s Statement 6
Deputy General
Director’s Statement 10
TRA Highlights During 2009 14
Working for Consumers 16
Advisory Groups 16
Consumer protection 17
Retail tariffs 17
International roaming tariffs 18
Batelco’s directory enquiries 18
Quality of service 18
Number portability 19
Numbering plan 20
Registration of prepaid mobile
subscriber details 21
Bulk Short Message Services (SMS) 21
Telecommunications masts –
radiation and visual impact 21
Crackdown on illegal activities 23
Consumer complaints 23
Building a Competitive
Market 24
Bahrain’s Economic Vision 2030 24
The internet ‘ecosystem’ 25
Batelco’s broadband tariffs 25
Action against Batelco on
international services 25
Local Loop Unbundling 26
Batelco’s other wholesale tariffs 27
Regulating retail tariffs 27
Cost of capital 27
Defining markets and market
power 28
Telecommunications infrastructure
in new properties 28
Third mobile licence 28
Other new licences 29
Future use of spectrum 29
Action on illegal activities 30
Lawful access regulation 30
Equipment approval regime 30
Call shops reseller agreement 30
TRA consultations procedures 31
Mergers and acquisitions 31
Market Indicators and Statistics 32
Forging Links 34
International events 34
Other international links 36
Internal links 37
Inside TRA 38
Senior TRA staff 39
Training 39
Awards 40
Statement of Accounts 42
Annexes 46

Our Vision, Our Mission
TRA Annual Report 2009
Page 1
OUR VISION
A communications environment which enriches the social and commercial
fabric of the Kingdom of Bahrain.
OUR MISSION
To develop a competition-led market for the provision of innovative
communications services, available to all, which:
- Encourages sustainable, economically efficient investment
- Respects the interests of consumers
- Fosters ecologically friendly initiatives and
- Supports the social and commercial welfare of the Kingdom of
Bahrain
To continue to build as an exemplar regulator within the region through
thought leadership and to be the employer of choice by:
- Investing in our people to develop a professional, passionate team
- Transparency and fairness in our operations and
- Adherence to quality assurance.

BOARD OF DIRECTORS
The Board of the Telecommunications Regulatory Authority (TRA) is appointed by His Majesty the
King, Hamad bin Isa bin Salman Al Khalifa, under Royal Decree No. 47 of 2008 based on a proposal
from the Council of Ministers of the Kingdom of Bahrain.
At the end of 2009 the Board was as follows:

Board of Directors
TRA Annual Report 2009
Page 3
Dr. Mohammed Ahmed Al Amer
Chairman
Shaikh Hamad bin Mohammed bin Hamad
Al Khalifa
Board Member
Dr. Taqi Abdul Rasool Al Zeera
Board Member
Brigadier Riyadh Eid Abdulla
Board Member
Mr. Tariq Abdul Jalil Al Saffar
Board Member

THE TELECOMMUNICATIONS
REGULATORY AUTHORITY (TRA)
The Telecommunications Law of October 2002, promulgated by legislative Decree No. 48 established
TRA.
The General Director appointed by His Majesty King Hamad bin Isa bin Salman Al Khalifa, based on
the recommendation of the Board of Directors of TRA and the proposal of the Council of Ministers,
and following the approval thereof by the Council of Ministers is responsible for the day-to-day
operations of TRA.
The duties of TRA include protecting the interests of subscribers and users of telecommunications
services, and promoting and maintaining effective and fair competition between established operators
and new entrants to the telecommunications market in the Kingdom of Bahrain. TRA carries out its
duties and exercises its powers in a fair, transparent and non-discriminatory manner.

The Telecommunications Regulatory Authority (TRA)
TRA Annual Report 2009
Page 5
BOARD OF DIRECTORS
General Director
Deputy
General Director
Communications &
Consumer Affairs
Director
Consumer Affairs
Manager
Communications
Manager
Technical & Operations
Director
Licensing &
Operations Manager
Spectrum Advisor
Technical Advisor
Telecommunications
Access & Infrastructure
Manager
Specialist ICT
Security Advisor
ICT Manager
Legal Affairs
Director
Senior Lawyer
Senior Lawyer
Senior Lawyer
Market & Competition
Director
Market & Competition
Manager
Finance &
Administration
Director
Chief Economist
Organizational chart as of 2009

We continue to attract investment
and this brings innovative and
competitively priced services for
customers.
Dr. Mohammed Ahmed Al Amer

Chairman and Acting General Director’s Statement
TRA Annual Report 2009
Page 7
CHAIRMAN AND
ACTING GENERAL
DIRECTOR’S STATEMENT
Welcome to the seventh
annual report of TRA -
the Telecommunications
Regulatory Authority
of the Kingdom of
Bahrain. This has been
a year of building on
the clear strategy and
work plan set out in
2008 and working
towards Bahrain’s new
Economic Vision 2030.
Telecommunications has an important role in underpinning
the Kingdom’s Economic Vision. At TRA, we need to encourage
the development of world-leading services, especially via high
speed broadband, next generation networks and excellent
international connectivity. This is key to attracting inward
investment and creating an attractive environment both for
businesses to grow and for people to live in. While we are
making good progress and took several significant steps in
2009, there is still some way to go.
Operating in today’s global economy continues to be
challenging. However there are clear signs that our work in
developing the telecommunications market in the Kingdom
over the last seven years is paying dividends. We continue
to attract investment and this brings innovative and
competitively priced services for customers. Competition
continues to grow and I was delighted, in March, to hand
over the third mobile licence to Saudi Telecommunications
Company (STC). The introduction of third mobile operator
will increase the level of competition which in turn will lead
to innovation, grater efficiency in operations and enhance
consumer choice.
From the beginning of liberalization we aimed to adopt
international best practice and standards. Now we
benchmark our prices against those in the region and
OECD countries. While we are still able to identify gaps and
shortfalls, the trends are encouraging and for many types of

service we lead the region. During 2009
we began benchmarking the quality of
mobile services and put in place steps
to do the same for broadband services.
Both are critical to the future success
of the Kingdom. We must ensure that
the user experience in the Kingdom
continues to compare favourably with
any other country.
We are also making good progress in
developing our infrastructure. At the
beginning of 2010 we were rated top
in the region according to the United
Nation’s e-Government Readiness
Report, which uses an index of six key
factors such as the online population,
internet and mobile phone users.
Globally Bahrain had moved from 46th
position to 19th. This is good news for
TRA, customers, service providers and
the economy.
There is growing recognition of
our achievements in the wider
telecommunications world. For
example, I was delighted to open a major
telecommunications conference in our
own capital at the end of October. This
was the first time that the International
Telecommunications Society (ITS) event
had been held in our region.
The team at TRA deserves much praise
for what they have accomplished in
2009. We are widely recognised as
being the leading regulator in the
region, regulating the most open and
competitive market here. I would
like to thank the entire TRA team, on
behalf of TRA’s Board, for all the hard
work in leading forward both TRA and
telecommunications in the Kingdom
of Bahrain, on behalf of TRA’s Board,
for all his hard work in leading forward
both TRA and telecommunications in
the Kingdom of Bahrain. During his
tenure we have set out a clear strategy
and work plan for the period ahead, we
have tackled many remaining barriers
to competition and we have developed
the skills and expertise of our own
Bahraini talent to take on senior roles
within TRA and the ICT sector.
There are certainly major challenges
ahead - particularly in securely
underpinning the Economic Vision
2030. We are in good shape to meet
those challenges. Both the Board
and staff of TRA are looking forward
to a future period of growth and
development in the sector. We all
have high ambitions for the future of
telecommunications in the Kingdom of
Bahrain and I hope you will follow our
journey in the years to come.
Dr. Mohammed Ahmed Al Amer

Chairman and Acting General Director’s Statement
TRA Annual Report 2009
Page 9

At the beginning of the year TRA had established
a considerable reputation both domestically and
internationally as a forward looking Regulatory
Authority that had taken some of the steps necessary
to ensure the future competitive supply of the
Kingdoms telecommunications services. The plans
that TRA published in 2008 laid the foundation for
further regulatory reform and a period in which
the focus of TRA activities slowly shifted away from
designing the regulatory framework towards one
of implementation and in some areas monitoring
of compliance and enforcement.
Rob Middlehurst

Deputy General Director’s Statement
TRA Annual Report 2009
Page 11
DEPUTY GENERAL
DIRECTOR’S STATEMENT
The publication of the
Kingdom’s Economic
Vision 2030 in 2008
also served to focus
minds and activities
on identifying and
removing barriers
to the development
of world leading
c o m m u n i c a t i o n s
infrastructures and in
particular improving
the international
connectivity of the
Kingdom as well
as increasing the
speed, availability
and affordability of
broadband services.
However, before looking at the year in more detail I would
like to take this opportunity to recognising the vision of the
Minister responsible for the telecommunications sector,
HE Shaikh Ahmed bin Attiyatalla Al Khalifa, and to thank
Dr. Mohammed Ahmed Al Amer, Chairman of the Board of
TRA, and the Board members for their full support and active
interest in the activities and work of TRA. I would also like to
extend my thanks to Mr. Alan Horne, the previous General
Director of TRA for his vision, passion and enthusiasm for
the development of the telecommunications sector of the
Kingdom and legacy that he has created in the discipline,
strength and depth of the team that he established,
developed and nurtured during his time as General Director.
The role of the regulator is never going to be easy, it requires
treading a fine line between what would sometimes appear
to be the conflicting demands of consumers, an incumbent
operator and new service providers, whilst at the same time
taking into account the government’s public policy objectives
for the sector and beyond, and also keeping abreast of
advances in global telecommunications. The model that
we have developed is based on pragmatism, flexibility, and
transparency. Where necessary difficult decisions have had
to be taken in order to ensure the efficient working of the
market and to keep on track so that the Kingdom realises its
longer-term vision for the market and consumers.

Our approach in liberalising the
market – to provide real choice for
consumers and to enforce the rights
and obligations of all licensees – is
now starting to bear fruit. When the
third mobile operator, STC (which
operates under the brand name
VIVA), begins offering services in
2010, consumers will be able to
choose from three or more operators
for all main telecommunications
services. Bahrain is the first country
to have two national WiMAX
networks. We have three national
broadband infrastructure providers
and ten competing providers of retail
broadband services.
This is excellent news for consumers
and our international benchmarking
studies show that in many parts of the
market we compare with the best on
both prices and choice. However there
are significant areas where the picture
was less healthy as 2009 began. In
particular, two were causing concern –
leased lines and broadband, especially
high speed broadband.
Leased lines are an important
service for larger business customers.
Competitive prices in both domestic
and international leased lines help
to attract businesses to locate in
the Kingdom and their subsequent
growth. Batelco’s new wholesale
prices agreed in September
contained notable cost reductions
including more than 20 per cent for
international leased lines to some
regions and up to 40 per cent for
domestic leased lines.
Both business and domestic
customers have a strong interest in the
development of broadband services.
The competitive availability of high
speed services and international
connectivity are key factors in the
success of Bahrain’s economic future.
At the beginning of 2009 the picture
for broadband services was mixed
and required a number of regulatory
moves to ensure fair competition
and future growth. There were three
main issues.
First, Batelco had no cost-based
wholesale products for higher
speed services, so providers with
no access infrastructure could not
compete. In addition the operator’s
retail prices for these services were
excessive compared to international
markets. At lower speeds Batelco’s
retail prices were below a level that
enabled other operators to compete,
given the relatively high level of its
wholesale prices. In May TRA issued
a final order to resolve this, ensuring
that Batelco’s wholesale charges
were fair, reasonable and nondiscriminatory
– and so paving the
way for giving consumers real choice
at competitive rates.
Second, on the international front,
Batelco rejected a competitor’s
application for the necessary access
services to connect to the only
international cable in which Batelco
does not have a direct interest but
which does, nevertheless, come
ashore in its premises. In November
TRA issued a final order requiring
Batelco to allow MENA Telecom to
connect to the Falcon submarine
cable. TRA fined Batelco for not
complying with the provision of
its Reference Offer. The Order also
included a variable element in the
fine to provide incentives for Batelco
to comply with the Order and provide
swift access to the landing station.
The third issue was that Batelco only
offered managed access services over
the copper local loop – the final
part of the network between the
exchange and customers’ premises
– thereby limiting the ability of its
competitors to provide innovative
broadband access products and
services. Batelco, as the incumbent
monopoly operator, has built the
local loop over many years and it is
both impractical and uneconomic for
other operators to build a full fixed
access copper network on which it
could compete with Batelco. The
offer of these services is known as
Local Loop Unbundling (LLU) and
was a measure initially contemplated
within the Telecommunications Law
and more recently set out in the
Strategic and Retail Market Review.
In September TRA issued a final
order requiring Batelco to offer a LLU
service to the industry on fair and
non-discriminatory terms.
Customers in new premises have the
opportunity of taking services direct
from competing operators, including
high speed broadband services. Midway
through the year we proposed
an innovative regulatory strategy

Deputy General Director’s Statement
TRA Annual Report 2009
Page 13
for new developments comprising a
contribution from developers towards
building the telecommunications
infrastructure combined with an open
access policy for operators, all within
the current regulatory framework.
Another issue that came to the fore
during the year concerned wireless
network infrastructure. There were
two aspects to this – the potential
danger of signal levels and the
environmental issues caused by
erecting telecommunications masts.
These issues led to Municipality
Councils not issuing permits for
operators to construct the networks
required under the terms of their
licences.
TRA organised a seminar with
leading international experts. It was
demonstrated that signal levels in
Bahrain were well below a level that
had been extensively tested for any
adverse effects on human health and
none were found. TRA undertook
to continue measuring signal levels
at a number of sites on a regular
basis. We also reached agreement
with the Municipality Councils
and developed guidelines to give
assurance both on signal levels and
on that telecommunications masts
would be built to blend in with the
surrounding environment.
As with the licensed operators
providing services within the
Kingdom of Bahrain, for TRA the
user experience is paramount.
Consequently we put a great deal
of emphasis on quality of service
with a requirement for operators to
regularly produce measurements on
a range of indicators. We have now
extended this to give a ‘customer
eye’ view of both mobile services
and broadband.
In contrast to the market developing
and enhancement activities that TRA
has undertaken during the year we
have also cracked down on a number
of illegal activities including the
illegal use of frequencies that were
interfering with legitimate services.
Whilst we still have a number
of challenges ahead – such as
the implementation of Number
Portability, where subscribers can
choose to keep their number when
moving to another provider we have
achieved much. Most of the Strategic
and Retail Market Review outcomes
have been delivered or are well
underway, and the market trends are
encouraging – for example, customer
numbers, revenues, employment and
the sector’s economic contribution
are all rising. Broadband prices
for businesses halved in 2009 and
subscriber numbers are rising fast.
The mobile penetration rate went
from 130 per cent in 2008 to 120
per cent of the population in 2009
as a consequence of disconnecting
unregistered prepaid mobile SIMs
and the compliance by Batelco with
the ITU active prepaid subscribers’
definition, however still people feel
able to have more than one phone or
mobile device.
The positive contribution of TRA in
regulating the telecommunications
sector in the Kingdom has been
increasingly recognised and praised
during the year, both at home and
abroad. In various international
forums our clear strategy, transparent
and evidence-based approach, as
well as an in-depth consideration
of adherence to international
best practice have led to us being
seen as the leading regulator in
the region, supporting the leading
telecommunications market. Within
Bahrain, TRA’s new corporate identity
and awareness campaign have
helped improve the general public’s
understanding of our role.
I look forward to the challenges
that 2010 will bring and seeing the
communications markets of the
Kingdom of Bahrain continue to
flourish as the extent of competition
within all parts of the markets
increasingly gather pace.
Rob Middlehurst

TRA HIGHLIGHTS
DURING 2009
January
- Saudi Telecommunications Company
(STC) is the successful bidder for the
third mobile licence in the Kingdom
of Bahrain
February
- TRA relaunches the auction process
for one licence using GSM 1800 MHz
Guard Band frequencies for advanced
telecommunications services
- TRA consults on a draft security
regulation to streamline access under
section 78 of the Telecommunications
Law
March
- STC receives the third mobile licence,
bringing the auction process to a
close
- A workshop helps to clarify issues
raised about the draft security
regulation
- TRA consults on a proposed new
telecommunications equipment
approval regime
- TRA General Director calls for fair
pricing in broadband services and
greater availability of higher speed
services. TRA issues a draft order to
ensure Batelco complies
- TRA cracks down on illegal
telecommunications activities using
its search and inspection powers
- TRA consults on the appropriate
approach for the implementation of
Local Loop Unbundling
- TRA sets out how it will support
Bahrain’s Economic Vision 2030
- TRA launches its new corporate
identity
- The extended registration period
for prepaid mobiles ends and all
unregistered prepaid mobiles are
disconnected
- TRA hosts a workshop for the
AREGNET Benchmarking Working
Group
April
- TRA seeks a consultancy firm to
develop a policy for universal service
and access to telecommunications
services required by residents and
businesses as well as to draw up a
national broadband strategy
- A draft Memorandum of
Understanding for Arab countries
to protect users from high mobile
roaming tariffs when travelling
abroad is published for consultation
– a result of joint work by the Arab
Regulators Network (AREGNET)
- TRA General Director addresses
the Bahrain British Business
Forum (BBBF) on a range of
telecommunications issues affecting
businesses
- TRA invites consultancy firms to
submit proposals to design, build
and operate a broadband quality of
service testing platform
May
- The Telecommunications and Media
Forum of the International Institute
of Communications (IIC) holds its first
meeting in the Middle East region
at TRA’s invitation. The theme is
convergent communications: Building
Digital Broadband for the Future:
Market and Policy Implications.
- TRA consults on changing the
regulations on issuing SMS messages
about notification of international
roaming tariffs
- Bahrain Broadband WLL is the
successful bidder for the GSM 1800
Guard Band Frequency Licence
- At a seminar organised by TRA world
leading experts confirm there is
no evidence of risk to health from
signals emitted from mobile masts
- TRA holds a workshop for
telecommunications companies on
the new National Numbering Plan
- TRA consults on guidance for the
deployment of telecommunications
networks in new property
developments
June
- TRA proposes a new framework for
regulating retail tariffs of operators
with significant market power in line
with its Strategic and Retail Market
Review of 2008
- TRA publishes its report on
telecommunications market
indicators including the number of
subscribers, penetration rates, call
usage, employment and revenues
- Results of the 2009 benchmarking
study comparing prices of
telecommunications services in Arab
countries are released
- TRA holds a workshop for
stakeholders on the deployment of
telecommunications networks in
new property developments
- TRA issues a draft of the proposed
guidelines for consumer protection
to assist both consumers and licensed
operators in understanding their rights
and obligations when buying or selling
telecommunications services

TRA Highlights During 2009
TRA Annual Report 2009
Page 15
- TRA takes part in three Middle
East and North Africa (MENA) area
conferences – one on WiMAX held
in Dubai, one on Telecoms Law and
Regulation in the Middle East held in
Dubai and the last one on national
security and the protection of
telecommunications infrastructure
held in Abu Dhabi
July
- Basil Al Arrayed is appointed
Communications and Consumer
Affairs Director for TRA
- TRA issues for consultation its draft
regulation on protecting consumers
from unsolicited messages sent in
bulk
- A national TRA campaign – ‘I love my
number’ – encourages consumers and
businesses to register their interest
in keeping their telephone number
when changing service provider
- Epitiro wins the contract to design,
build and operate a broadband
quality of service testing platform
- TRA issues a draft determination for
consultation on the cost of capital
applicable to Batelco and Zain
- TRA conducts a nationwide search for
radio communications equipment
being operated without a frequency
licence – this interferes with licensed
equipment
August
- TRA discusses the benefits of wireless
technologies with Municipality
Councils
- TRA identifies unlicensed radio
spectrum users operating in parts of
the 5 GHz band reserved for official
use
- TRA consults on repealing
the Determination on the
Methodology for the Definition of
Telecommunications Markets and
Determination on the Methodology
for Determining Market Power
- TRA locates and stops spectrum users
violating the terms of their frequency
licences
- The Ambassador of the United States
of America visits TRA’s offices
September
- TRA discusses wireless infrastructure
issues to find the best way forward
for both the environment and
consumers
- Nick Truman, is appointed as TRA’s
specialist ICT security advisor
- TRA initiates legal enforcement action
against Batelco for refusal to provide
direct access to international circuits
provided by Flag
- TRA publishes a final order
requiring Batelco to allow other
licensed operators to provide
alternative broadband and fixed
services through unbundling the
local loop
- TRA approves Batelco’s wholesale
price reductions
October
- TRA tells mobile operators about
quality of service checks
- TRA and internet service providers
support the Ministry of Culture
and Information to stop copyright
infringement and pornography
broadcast via Dreamboxes
- Renesys’ study provides detailed
snapshot of Bahrain’s internet
‘ecosystem’
- A panel of service providers and
consumers’ representatives addresses
consumers’ concerns and listens to
views
- TRA opens the 20th European Regional
International Telecommunications
Society (ITS) Conference in Bahrain –
the first to be held in the region
- TRA publishes regulation on sharing
of wireless network facilities
- TRA launches the “TRA art”
competition aimed to educate
students aged 12 – 23 on the role of
TRA and what telecommunications
can contribute to improving
living standards, protecting the
environment and enhancing
education
November
- TRA issues its third quarter report
on signal levels transmitted from
telecommunications masts. This
indicates signals are well within
internationally permitted levels
- TRA issues a determination setting
the cost of capital for Batelco’s and
Zain’s regulated telecommunications
services at 9.5 per cent
- TRA orders Batelco to meet its
obligations to other licensed
operators over access to Flag and
fines Batelco for failing to do so
- General Director Alan Horne steps
down after three years in the post
- TRA issues its Lawful Access
Regulation
December
- TRA agrees to Batelco removing the
prerecorded message that informs
customers of the cost of using 181
and 188 directory enquiry services
and reminds customers that the
costs still apply

WORKING FOR
CONSUMERS
C o n s u m e r i s s u e s
continued to be a
priority for TRA during
2009. There was
progress on protecting
consumers, stimulating
more choice through
greater competition
and ensuring that they
have more information
to exercise that choice.
The award of the
third mobile licence
to STC (see Building a
Competitive Market)
was more good news
for consumers, giving
the choice of at least
three service providers
for all main types of
telecommunications
service.
During the year TRA launched “I love my number” campaign,
an initiative to help build awareness and gauge demand
for Number Portability (the capability to retain telephone
number when changing service provider).
In March TRA launched its new corporate identity. This was a
more modern image in line with the leading edge ICT services
that TRA is aiming to promote. The identity was designed
to raise awareness of TRA’s role in supporting the effective
use of these services by business and government as well as
individual consumers. Following a campaign using the new
identity awareness of TRA and its role rose from 13.5 per
cent to 36 per cent.
Advisory Groups
Two independent bodies – the Consumer Advisory Group
and the Business Users Association – represent the interests
of residential and business users of telecommunications
services in Bahrain respectively. The Business Users
Association was set up by the Business Users Advisory Group
using a model that has proved successful in giving business
customers an effective voice in other international markets.
The group looked particularly at the UK where a similar
body, the Communications Management Association (CMA),
plays a key role in representing its members’ interests in the
communications sector.
At a meeting on 21 October members of the two groups,
other consumer representatives and interested consumers
were able to discuss issues and raise their concerns directly
with some of the licensed operators. A wide range of topics
were covered including consumer rights, customer services,
the ethics of product advertisements, billing and invoicing.
On the panel, consumers were represented by Sheikha Haya
bint Rashed Al Khalifa, Chair of the Consumer Advisory
Group and its Vice Chair, Mr. Abdulbasit Al Mahmood. The
Business Users Association was represented by Mr. Ahmed bin
Hindi, Head of the founding committee as well as Mr. Raed
AlSamahiji and Mr. Faisal Abdulla, both founding members.
Representatives from the following licensed operators
attended: Batelco, Zain, Lightspeed Communications, MENA
Telecom, Nuetel Communications and Kalaam Telecom.

Working for Consumers
TRA Annual Report 2009
Page 17
During the meeting TRA encouraged consumers to take
up their complaints directly with their operator. With
increasing competition, operators are keen to resolve
any issues rather than see their customers leave for
another operator.
Consumer protection
In June TRA published a set of draft guidelines for
consultation on a range of consumer protection issues.
The guidelines were intended to clarify consumers’ rights
and expectations. Issues covered included:
- Information about tariffs charged, availability
and provision of service and quality of services –
collecting, retaining and disseminating information
to consumers
- Privacy and confidentiality issues
- Handling and resolving complaints and disputes
- How TRA expected licensed operators to respect and
protect consumers’ rights as well as provide high
quality services
- Consumer connections to other consumers
- Telemarketing, premium rate and value-added
services
- Emergency services
- Health and safety issues
The guidelines aimed to encourage best practice among
operators, increase awareness of consumer rights and
improve consumer access to information so people could
make informed choices for their telecommunications
services. As a result they would promote effective and
fair competition among new and established licensed
operators. Once the guidelines were adopted TRA would
consider other regulatory measures to further enhance
the protection of consumer rights.
Retail tariffs
In 2008 TRA commissioned, on behalf of the Arab
Regulators Network (AREGNET), the first comprehensive
price comparison of main retail prices for Arab countries.
This was repeated in 2009. The benchmarking study, from
independent consulting firm Teligen, compared baskets of
services for both business and residential customers with
different usage profiles – low, medium and high – and
benchmarked these against results for OECD countries.
Fixed voice, mobile, broadband and leased line services
were all covered.
For the region as a whole there was a wide spread of
rates with some below OECD averages but generally they
were higher. Mobile tariffs compared well although rates
were dropping faster in OECD countries. Leased line
and broadband prices were still high but the gap was
narrowing.
For the Kingdom of Bahrain alone, fixed voice tariffs
continued to compare well with Arab and OECD
countries although the results highlighted the problem
of prices of services being out of line with costs. TRA
began moves to address this issue (see Building a
Competitive Market). Mobile tariffs continued to
compare very well with both Arab and OECD countries
and the entry of the third operator is expected to lead
to further improvement.
Consumer and business users in a public meeting with the industry

However there was no improvement over the 2008 results
in leased line prices and broadband prices still did not
compare well with the European average. The price of
residential medium speed broadband (1–4 Mbit/s) was
four times greater than the European average. Again TRA
took action during the year to improve this situation (see
Building a Competitive Market).
International roaming tariffs
There was progress on protecting consumers from high
mobile roaming tariffs charged when people travel
among Arab countries. This was a joint initiative within
the Arab Regulators Network (AREGNET) supported by the
Arab League and the Gulf Cooperation Council. In April
TRA published for consultation a draft Memorandum
of Understanding (MoU) for Arab Countries prepared
by an AREGNET working group led by TRA. The MoU
is a stepping stone in setting out a framework to take
forward the recommendations that emerged from the
joint initiative.
In May TRA consulted on some changes to the regulations,
introduced in 2008, on the notification to consumers of
international roaming tariffs. The aim of the changes was
to reduce the number of SMSs consumers received when
travelling. In effect the amendments proposed:
- The message would be sent in the consumer’s chosen
language only (the choice must be English or Arabic
at least)
- Where the country visited had more than four
operators with which the service provider had
an arrangement, the message would inform the
consumer about the maximum tariff
- Blind or partially-sighted customers should be able
to obtain the same information, free of charge, by
voice means
- Service providers would not be obliged to provide a
helpline service where not technically feasible but
consumers must be given information on how to
access the service by some other means
Batelco’s directory enquiries
At the very end of the year, TRA reminded consumers that
Batelco had removed the pre-recorded message on its 181
and 188 directory enquiry services. The message informed
customers of the cost of using these services. TRA’s approval
to this depended on Batelco informing customers of the
charges through other means – published terms and
conditions, their shops and website.
Quality of service
A regulation published in September 2008 made the
collection and reporting of performance measures
mandatory for all licensed operators. This enables
consumers to directly compare the results for different
operators. In June TRA announced it had collected quality
of service measurements from all licensed operators for
the first quarter of 2009. While generally there was a
high level of consistency, there were exceptions which
required further investigation.
Comparative indicators for a number of categories were
collected. These included service provision, reported
faults, service restoration, billing accuracy, complaints
and network measurements.
A workshop on Mobile Quality of service

Working for Consumers
TRA Annual Report 2009
Page 19
Epitiro performing Broadband quality of service check
Mobile quality of service
In October TRA informed the three mobile licensees –
Batelco, Zain and STC – of its plans to perform quality
checks and benchmark the quality of mobile services.
TRA aimed to use the results to work with the operators
to improve quality of service over time. A specialist
consulting firm Directique was hired to carry out the
measurements. As the fieldwork took place in November,
before STC launched its service, only Zain and Batelco
were included for 2009.
The approach was to use SIM cards and handsets
available in any Batelco and Zain shop so the real
end user experience could be measured. Tests were
conducted inside buildings, in the open air and in
moving vehicles. The quality of voice, SMS, MMS, data
transfer, email and web browsing were all measured.
Measurement indicates that on the whole Mobile Quality
of Service in the Kingdom compares relatively well with
international standards, though there is always room for
improvements.
Broadband quality of service
At the end of April TRA invited consultancy firms
to submit proposals to design, build and operate a
broadband quality of service test platform. The aim
was to perform continuous measurements of key
performance indicators including download speed,
upload speed, latency, packet loss and jitter. Users
would be provided with aggregated results.
TRA was looking for the most appropriate test
methodology to ensure reliability of the results, fairness
and non-discrimination between internet service
providers. TRA aims to publish the results of such test
in due time to help consumers in making a choice. The
performance measurements would also assist TRA in
validating broadband quality of service data provided by
internet service providers.
In July Epitiro, an industry expert in broadband
measurement and benchmarking, was appointed to
carry out the work. Epitiro’s broadband performance
analysis would deliver the required up-to-the-minute
benchmarking reports on key service quality performance
indicators for different providers. This will ensure that TRA
can monitor quality of service in real time, the final report
will be published in mid 2010.
Number portability
Consumers’ reluctance to change number when
choosing a new service provider can be a significant
barrier to effective competition. In July TRA launched
a national awareness campaign – ‘I love my number’.
Both residential and business consumers were invited to
register their interest in keeping their mobile or landline
telephone number when changing service provider.
Consumers could register on TRA’s website, email or call
TRA’s consumer affairs line.
The campaign was part of the consultation process in
implementing number portability. TRA was proposing
that subscribers would only need to approach their new
service provider to activate the service. The previous
provider would not have an opportunity at that stage to
win back the consumer. This would encourage service

providers to offer competitive packages and a high
standard of customer service in order to retain their
subscribers.
Numbering plan
A workshop for telecommunications companies held
in May highlighted the benefits to consumers of the
new National Numbering Plan. Of particular interest to
businesses are the special numbers enabling them to
offer their customers ‘freephone’ services by dialling an
eight-digit number starting with ‘80’ or by paying extra
for a five-digit number starting with ‘82’.
Premium rate services – where the consumer pays for the
information or service through the telephone charge, for
example, as used by some TV programmes – can also be
eight or five digits long, depending on charge, and start
with ‘9’.
Numbers beginning with ‘6’ or ‘7’ and comprising
eight digits are ‘universal numbers’. These can be used
for either fixed or mobile services. TRA is also keen to
introduce a standard set of three-digit service codes. The
table below summarises all these numbers:
First digit(s): Used for: Length of number:
100 Local operator assisted calls 3 digits
121 Fault report 3 digits
140 Speaking clock (English) 3 digits
141 Speaking clock (Arabic) 3 digits
151 International operator assisted calls 3 digits
181 National directory enquiries 3 digits
188 National directory enquiries (optional) 3 digits
191 International operator services 3 digits
196 Customer care 3 digits
13 Fixed line services 8 digits
16 Fixed line services 8 digits
17 Fixed line services 8 digits
3 Mobile services 8 digits
6 Universal – fixed, wireless or mobile services 8 digits
7 Universal – fixed, wireless or mobile services 8 digits
80 Freephone – no charge to caller 8 digits
81 Freephone – no charge to caller (Type B short code) 5 digits
84 Cost shared between callers 8 digits
85 Cost shared between callers (Type B short code) 5 digits
87 Caller pays for the call 8 digits
88 Caller pays for the call (Type B short code) 5 digits
90 Low band – cost between BD 0.05 and
BD 3 per minute
8 digits
91 Low band – cost between BD 0.05 and
BD 3 per minute (Type B short code)
5 digits
94 Medium band – cost between BD 0.05 and
BD 3 per minute (Type B short code)
5 digits
95 Medium band – cost from BD 1 per minute 8 digits
97 High band, unlimited 8 digits
98 Caller pays for call (Type B short code) 5 digits
112 or 999 Common international emergency – no charge 3 digits
199 Traffic accident police – no charge 3 digits
990 Casualty Bureau – no charge 3 digits
992 Criminal Investigation (CID) – no charge 3 digits
994 Coast Guard (CGD) – no charge 3 digits

Working for Consumers
TRA Annual Report 2009
Page 21
Registration of prepaid mobile subscriber details
At the very end of 2008 TRA extended by three months
the period allowed for mobile operators to register
the details of existing subscribers to prepaid mobile
services. The purpose of this move, which is in line with
international practice, was to establish a database of users
and subscribers. The relevant authorities can then use
this to improve security for the benefit of both consumers
and the network operators. TRA encouraged operators
to promote self-registration by subscribers using a TRAapproved
system. The initiative was widely publicised.
By 1 April all unregistered prepaid mobiles had
been disconnected. Over three quarters of a million
registrations were made during the six-month period,
leaving around five per cent of the total mobile base
having to be disconnected. Disconnected subscribers
were required to visit their operator outlets or customer
service centres to reconnect, provided their SIM cards
had not expired.
Bulk Short Message Services (SMS)
After an extensive consultation process, TRA concluded
that consumers were more concerned about receiving
unsolicited promotional communications via bulk SMS
than either through telemarketing or fax broadcasting.
In July a draft order, issued for consultation, proposed
the following measures:
- To restrict when they can be sent (between 9:00 and
20:00) and the number (two per day)
- To require the source to be identified
- For the licensed operator to give a clear, simple and
free of charge opt out method – and to make sure
consumers are aware of it
- For the message to specify any cost associated with
responding
- For licensed operators to make bulk messengers
aware of the regulation
- The draft order made exception for certain important
public announcements by excluding from these
requirements such issues as network failure and
public security
Telecommunications masts – radiation and
visual impact
Throughout the year stories have continued to circulate,
particularly in the media, alleging adverse health effects
from electromagnetic radiation radiating from the
antennae used in all wireless communications. The main
early users of wireless communications were the military,
radio and TV broadcasting. Mobile telephone networks
heralded a significant increase in the number of base
stations and more recent technologies such as WiFi,
WiMAX and Bluetooth have again led to an increase.
In response to these concerns TRA organised a seminar
in May. In the audience were representatives from the
Municipalities, Bahrain Defence Force (BDF), Ministry
of Interior, TRA, telecommunications companies and
the Public Commission for the Protection of Marine
Resources, Environment and Wildlife.
Three eminent experts and TRA presented evidence from
around the world and the position in the Kingdom of
Bahrain. The experts were:
- Professor Michael Repacholi from the University of
Rome and also Honorary President of the International
Commission on Non-Ionizing Radiation Protection set
up by the United Nations, its recommendations are
approved by the World Health Organization (WHO)
- Dr. Professor Waheeb Al Nasser, Professor of Physics
at the University of Bahrain and President of both
the Arabic Section of the World Association for Solar
Energy (Germany), and the World Energy Organization
of the Middle East
- Mr. Mirza Khalaf, Head of the Pollution Control section
at the Public Commission for the Protection of Marine
Resources, Environment and Wildlife in Bahrain
In summary, more than US$300 million spent on
research and 10 thousand published papers over 30
years have revealed no credible evidence that signal
levels from telecommunications masts adhering to
internationally agreed standards pose any risk to human
health. The WHO states: “Considering the very low
exposure levels and research results collected to date,
there is no convincing scientific evidence that the weak
radio frequency signals from base stations and wireless
networks cause adverse health effects”.
Professor Repacholi commented that the limit for radio
frequency signal levels adopted by the World Health
Organisation had been set 50 times lower than a level
at which, after extensive research, there is no evidence
of any danger to human health.
Dr. Professor Waheeb Al Nasser told the meeting that
Bahrain was the first country in the region to issue a
standard for radiation emitted from electromagnetic
fields which is in line with the International Commission
on Non-Ionizing Radio Protection (ICNIRP) standard and
WHO recommendations. This is set out in Ministerial
Order 4 of 2009. All the measurements conducted so

far in Bahrain have revealed that signal levels from
telecommunications base stations are well below the
internationally accepted standard. He also explained
that the more masts used by any one operator the lower
the power levels required to reach mobile handsets and
the lower the power needed by the handsets themselves.
Therefore more masts decrease signal levels.
The General Director and the Licensing and Operations
Manager, Philip Harris, from TRA presented the results
from signal level measurements at 13 sites in Bahrain, all
showing levels significantly below the limit, and assured
the audience that, together with the Public Commission
for the Protection of Marine Resources, Environment and
Wildlife, TRA would continue to monitor signal levels.
Participants in the seminar agreed on a set of
recommendations including:
- TRA, in co-operation with the Public Commission for
the Protection of Marine Resources, Environment
and Wildlife, would continue to monitor signal levels
and publish results
- TRA, with the Municipalities and the Public
Commission for the Protection of Marine Resources,
Environment and Wildlife, would encourage operators
to use environment-friendly mast designs and to
benefit from the proposed mast sharing regulation
in order to minimise their impact
- The Municipalities would process the outstanding
orders for wireless base station installations
- An awareness campaign was needed to reassure the
general public and ensure they knew the facts about
signal levels
The regulation to encourage sharing of wireless
telecommunications network facilities was published in
October.
Later in the year, on request, TRA measured signal levels
from mobile antennae in Hamad Town and Jidhafs. In
both areas levels were very small and well below the
limit set.
In November TRA published its third quarter report on
the measurement of signal levels and again this indicated
that signals were well within the level permitted. The
results were consistent with other measurements
made by TRA, and now covered a total of 39 locations
in Bahrain. The highest signal level recorded was on a
rooftop adjacent to a mast and measured 0.18 per cent
of the internationally agreed level (more than 500 times
below the permitted level). Typically, in public places,
TRA measuring signal level in Hamad Town
the reading was 0.01 per cent. TRA will continue to
monitor signals.
The General Director also told the audience that
TRA was working with the Municipalities, the Public
Commission for the Protection of Marine Resources,
Environment and Wildlife and the licensed operators to
reduce the visual impact of masts so they blend in with
their surroundings.
Municipality Councils had concerns about the masts both
on environmental and on health and safety grounds. As
a result some operators had erected masts while their
applications for permits were still pending.
In August TRA met with representatives from the Southern
Governorate and Muharraq Municipality Councils to
discuss the wide range of services now offered through
wireless technologies and the increasing demand for
them from consumers. The representatives were updated
on work to ensure that masts would blend in with their
environment and reassured that signal levels were well
below safety limits. However some Councils were still
threatening to take action to remove masts erected
without permits.

Working for Consumers
TRA Annual Report 2009
Page 23
TRA attending Muharraq Municipality Council meeting on telecommunications masts
In early September TRA met with representatives from
Batelco, MENA Telecom, STC and Zain to discuss the issue.
A way forward on permits for erecting masts was reached
with Central and Muharraq Municipality Councils at the
end of September. Guidelines were being drawn up for
the deployment of new wireless telecommunications
networks. These would set out the engineering principles
and consent requirements, including the timeframe for
parties to respond so telecommunications operators
could meet their commitments on providing services to
consumers. While the guidelines were being developed
and agreed, no action would be taken against the
licensed operators.
The licensed operators worked closely with TRA on the
guidelines which were presented to the Municipalities
and other concerned planning authorities in November
for their views and comments.
Crackdown on illegal activities
TRA continued to take action on illegal
telecommunications activities. These can directly affect
consumers. During 2009 TRA uncovered and seized
illegal devices being used to offer the public unlicensed
international services. TRA also took action to stop
users operating radio communications services outside
permitted frequencies.
Consumers were encouraged to contact TRA and report
any suspected violations of the Telecommunications Law
and potentially illegal telecommunications activities.
Consumer complaints
During the year, TRA received a total of 76 complaints from
consumers. These related to matters they were not able to
resolve with their service providers. This compares with 22
complaints in 2008, an increase of 245 per cent.
TRA and the industry working on guidelines for installing new telecommunications masts

BUILDING A
COMPETITIVE MARKET
During 2009 TRA
continued to follow the
principles for developing
the market laid down
in the second National
Telecommunications
Plan and to put in place
the specific measures set
out in the Strategic and
Retail Market Review
of 2008. Bahrain’s
new Economic Vision
2030 gave an added
impetus to developing
high speed broadband
services and related
regulatory activity.
Despite a difficult year in many parts of the global economy,
the Kingdom’s telecommunications market continued
to attract new investment. STC winning the third mobile
licence and Bahrain Broadband WLL the GSM 1800 licence
were highlights.
TRA needed to take firm regulatory action during the year to
ensure fair competition, to protect the interests of consumers
and to stop illegal activities.
Bahrain’s Economic Vision 2030
The Kingdom of Bahrain’s Economic Vision 2030, and
the National Economic strategy 2009 - 2014 published in
early 2009 by the Bahrain Economic Development Board,
contained important policies and strategies relating to TRA
in supporting Bahrain’s future economic growth through
world leading telecommunications services.
At the end of March the General Director set out how TRA was
responding to the vision. TRA’s actions, for example, were
leading to more market entrants, competitive ubiquitous
broadband services and greater awareness of services and
rights among businesses and individual customers. The
development, availability and use of electronic highways
would support economic growth in an environmentally
friendly way.
In April TRA and the Minister responsible for the
telecommunications sector, HE Shaikh Ahmed bin Attiyatalla
Al Khalifa, invited consultancy firms to submit proposals
for developing a policy that ensured all residents and
businesses had access to competitive, affordable, up-todate
telecommunications services – in particular high speed
broadband services. The universal service and access policy
should ensure the sustainability of the telecommunications
sector and continue to encourage inward investment.

Building a Competitive Market
TRA Annual Report 2009
Page 25
The internet ‘ecosystem’
In October TRA published a study by Renesys giving a
comprehensive overview of the evolving relationships
between the Kingdom’s internet service providers (ISPs)
and the international telecommunications carriers
serving Bahrain and the region. The study provided
a snapshot of the internet ‘ecosystem’ in August 2009,
identifying key strengths and potential weaknesses.
Some of the key findings were:
- Bahrain is one of the most connected countries in the
region with a growing number of internet-connected
organisations
- Although internet access is periodically threatened
by disruption to international network cables, it
appears more consistently stable than in other parts
of the region
- Bahrain’s business customers lack alternatives to
diversify and expand their e-business initiatives – in
part due to capacity constraints
- The Kingdom is falling behind in the creation of
domestic internet content with the result that
domestic traffic volumes are low and there are
significant imbalances with the United States and
Europe where most popular content is hosted
- There is growing diversification in Bahrain’s
internet ecosystem and significant progress toward
the development of a diverse, resilient set of
relationships among emerging ISPs, their regional
partners, and the key international providers who
serve the region
The report concluded that some work remained but
all the ingredients were in place to support Bahrain’s
growth as a regional centre over the next decade. The
results were presented at the Europe–Middle East–North
Africa Regional ITS Conference at the end of October (see
Forging links).
Batelco’s broadband tariffs
The availability of competitive higher speed broadband
services, at an appropriate price for sustainable
competition, remained a key priority for TRA in order to
support the Kingdom’s Economic Vision 2030. In March
the General Director expressed concern that Batelco
had no cost-based wholesale products for higher speed
services (above 2Mbit/s) to enable service providers with
no access infrastructure to compete. The operator’s
proposed retail prices for these higher speed services
were excessive compared to international markets.
In addition, where competition existed in the lower
speeds (below 2Mbit/s) Batelco’s proposed retail prices
were below a sustainable level for competitors in the
market, taking account of Batelco’s wholesale charges to
other operators.
Fixed broadband services, using such technologies as
ADSL (asymmetric digital subscriber line – enabling both
voice and data transmission), are delivered over the same
lines as fixed telephony services. In Bahrain Batelco owns
these lines – the access network – and has been found
to be dominant in the associated wholesale markets (see
also Local Loop Unbundling below). In order to allow
competition to develop and provide greater consumer
choice Batelco is obliged to provide wholesale services
over its access network to other licensed operators
enabling the provision of competing broadband services
to end users. The charges for these wholesale services
offered by Batelco must be approved by TRA and, by law,
must be fair, reasonable, non-discriminatory and based
on forward looking incremental costs.
On 31 March TRA issued a draft order requiring Batelco
to reduce its charges to other licensed operators for
wholesale broadband services below 2 Mbit/s and to
launch higher speed wholesale services. This paved
the way for the development of fair and sustainable
competition, giving consumers choice at competitive
rates. Batelco had 30 days to respond to the draft order.
The final order was issued on 24 May.
Action against Batelco on international services
In September TRA issued a draft order requiring Batelco to
meet its obligations under the Reference Offer to provide
the services necessary to enable other licensed operators
direct access to the Flag international landing station in
order to offer customers better value international and
internet services. This had been identified as a priority
issue for some time but Batelco had not taken action to
resolve it.
Flag (Reliance Globalcom) is a licensed operator offering
international capacity on the Falcon submarine cable
system through its landing station which is situated in a
Batelco building. This is the only international capacity
available in Bahrain in which Batelco has no direct
interest. Under the terms of its Reference Offer, Batelco is
obliged to make available services and facilities, including
space in its building, to enable other licensed operators
to install, operate and maintain telecommunications

equipment. Batelco can reject applications on legal
grounds, but TRA did not consider its rejection was
justified in this case. Batelco had 30 days to respond to
the order.
On 24 November TRA ordered Batelco to meet its
obligations to enable MENA Telecom to purchase
international capacity and directly connect with Reliance
Globalcom at Batelco’s premises in Telegraph House. TRA
concluded that the reasons for Batelco’s rejection of MENA
Telecom’s request were not justified and Batelco’s action
was to the detriment of Bahraini citizens, businesses and
the economy. The opening up of international capacity
on a competitive basis would be a watershed in the
development of the sector – internet usage should grow,
prices decrease and speeds increase. This was a key part
of the 2030 Economic Vision.
Owing to the seriousness of the situation TRA imposed
a base fine of BD5,038,088 on Batelco. This would
increase by BD100,000 each calendar day that Batelco
did not comply with the due date in the order. It would
be reduced by a similar amount for each working day
that Batelco provided the services in advance of the
due date. Batelco had 30 working days to comply with
the order.
Local Loop Unbundling (LLU)
The final part of the fixed network, between the
exchange or service nodes and customers’ premises,
had been built up over many years by Batelco as the
incumbent operator protected from competition.
This normally comprises a pair of copper wires –
entirely suitable for modern broadband services. It is
uneconomic and impractical for competitors to replicate
the access copper network. This would result in wasteful
duplication of investment.
Once introduced, Local Loop Unbundling (LLU) will
enable other licensed operators to provide alternative
broadband and fixed services over Batelco’s fixed access
network. This was a measure proposed in the 2008
Strategic and Retail Market Review, in order to stimulate
competition in broadband services leading to lower
prices and innovative services. It would also support the
use of e-government and e-commerce services.
Following a public consultation, TRA issued on 14 September
a determination defining the wholesale physical network
infrastructure access market and the wholesale broadband
access market – and declaring Batelco dominant in both
these markets. This was followed, on 16 September, by
TRA publishing a final order requiring Batelco to offer a
LLU service to the industry on reasonable, fair and nondiscriminatory
terms.
The next step was to conduct field tests in two of Batelco’s
exchanges. These would enable all parties to understand
the issues around LLU and speed up implementation.
TRA announced that the following licensed operators
had qualified to participate in the LLU field tests:
- 2 Connect
- Kalaam Telecom
- Lightspeed Communications
- Northstar Communications
TRA workshop on local loop unbundling

Building a Competitive Market
TRA Annual Report 2009
Page 27
Batelco’s other wholesale tariffs
The Reference Offer sets out the basic regulated
wholesale offer by Batelco to other licensed operators
in the Kingdom and enables them to provide services
to end users on Batelco’s network, allowing their
customers to communicate with Batelco’s – and vice
versa. The Reference Offer is therefore vital to effective
competition in a market with an incumbent operator.
Each year the prices in the Reference Offer for regulated
services are submitted for approval. In September TRA
approved the Reference Offer for interconnection and
access services offered by Batelco to other licensed
operators. There were reductions in charges for many of
the services, enabling other licensed operators to offer
more competitive retail prices.
Notable cost reductions included more than 20 per cent
for international leased lines to some regions and up to
40 per cent for domestic leased lines. These will benefit
business customers. The price reductions for internet
access services announced in May provided significant
benefits for residential customers through reduced
retail prices.
Regulating retail tariffs
One of the measures announced in 2008 as a result
of the Strategic and Retail Market Review was the
reform of retail tariff regulation. At the beginning of
June TRA issued proposals for public consultation to
take this forward. Where an operator has significant
market power, as Batelco does in certain markets,
their retail tariffs generally require TRA’s approval
prior to launch.
However with an increasingly competitive market, TRA
recognised that Batelco needs sufficient flexibility to
develop more innovative offers and price changes while,
at the same time, emerging competition and consumer
interests remain safeguarded. Under the proposals
Batelco would no longer require prior approval for
retail tariffs but must notify TRA in advance and certify
its compliance with specific rules designed to protect
competition and consumers.
TRA also considered that there was sufficient competition
in mobile services and for fixed calls to some international
destinations to remove the requirement for Batelco to
submit its tariffs for approval altogether.
At the same time TRA invited Batelco to submit a
proposal for how it intended to rebalance, progressively,
its fixed line services. The operator’s fixed line rental had
not changed for more than 17 years and was unlikely
to be in line with costs. Fixed line access to customers’
homes and businesses at subsidised prices may deter
investment in new infrastructure, e.g. for high-speed
broadband services. Prices out of alignment with costs
also distort the market for new entrants. This move was
in line with the Second National Telecommunications
Plan.
Any resulting increases in line rental or national
call charges were expected to be offset by two
developments:
- First, the introduction of elapsed time charging for
fixed line calls where customers only pay for the time
they use – Bahrain remains one of the few countries
that has retained unit charging, charging for a three
minute call even when the call sometimes takes a
few seconds
- Second, the wider benefits gained by access to
broadband and new innovative services as well
as expected future reductions in the price of such
services.
TRA also proposed to monitor the cost of a basket
of services for low, medium and high usage. It would
work with Batelco, other Government bodies and
the Consumer Advisory Group to take account of the
long-term interests of consumers in introducing these
measures and to mitigate any adverse impact on low
income families.
Cost of capital
In a draft determination published in July TRA proposed
setting the cost of capital for both Batelco and Zain at
9 per cent for regulated telecommunications services.
The cost of capital applied to Batelco had been set
at 12.2 per cent in 2005. This can be defined as the
rate of return required by investors for investing in
specific activities and reflects the underlying risk of the
investment.
At the beginning of November TRA issued a final
determination setting the rate at 9.5 per cent. TRA
considered the new rate an appropriate, fair and
reasonable rate of return that would encourage
efficient investment and would not lead to
unjustifiably high prices for consumers. It balanced
incentives to invest with regulatory stability and
consumers’ interests, taking account of the ongoing
economic uncertainty.

Defining markets and market power
In August TRA issued for consultation a draft
determination proposing to repeal two determinations
issued by TRA in 2003. These two determinations covered
the methodology for the definition of relevant markets
and for the analysis of market power therein. Both
issues are now covered in the competition guidelines,
therefore TRA considered it was appropriate to repeal
these determinations.
Telecommunications infrastructure in new properties
With the rapid growth in new property developments
in the Kingdom of Bahrain, both for business and
residential use, TRA considered it important to clarify
how the regulatory framework applied to the provision
of telecommunications infrastructure and services
to new property developments. Access to high speed
competitive broadband services is a key selling point in
today’s market.
TRA was determined that no new monopolies
emerged but recognised that telecommunications
operators would not necessarily be willing to invest
in infrastructure in new developments because of the
uncertainty of the return on their investment. TRA
aimed to encourage property developers to take a more
active role and install at least a basic infrastructure
of ducting so telecommunications networks could be
deployed rapidly by any licensed operator.
A consultation document published in May set out the
main elements of the proposed regulatory strategy:
- A contribution by developers towards deployment of
telecommunications infrastructure, together with
- An open access policy, ensuring competition and choice
for consumers in new developments, as well as
- Continued application of the existing regulatory
framework.
In June TRA held a workshop for a group of more than
40 representatives from telecommunications companies,
investors and property developers on the deployment
of telecommunications infrastructure in new property
developments.
Third mobile licence
The bid process for the third mobile operator – in addition
to Batelco and Zain – came to a close on 2 March when
Saudi Telecommunications Company (STC) received its
licence. TRA’s Chairman Dr. Mohammed Ahmed Al Amer
formally handed over the licence to HE Mr. Mohammed
bin Suleiman Al Jasser, the Chairman of STC. TRA had
announced that STC was the successful bidder, with a bid
of BD86,687,000, in January.
STC is the incumbent operator in the Kingdom of Saudi
Arabia and already operates in six other countries with
over 60 million subscribers who have access to the latest
mobile technologies. The company established STC
Bahrain BSC as the licensed operator in the Kingdom of
Bahrain. Under its licence STC must offer services within 12
months of the effective date of the licence and its network
must offer coverage to over 95 per cent of the population
at launch. The licence also includes commitments to
TRA workshop on the deployment of telecommunications infrastructure in new property developments

Building a Competitive Market
TRA Annual Report 2009
Page 29
TRA opening the financial bid of Bahrain Broadband WLL
reach agreement on shared infrastructure, to establish
a fund to drive technological innovation in the Kingdom
– for example in e-learning, e-health and e-commerce –
and to allocate 1 per cent of annual revenues to social
programmes.
Once STC begins offering services in 2010, consumers will
have the choice of three or more operators in all main
types of telecommunications services. The additional
operator will also give a strong boost to competition,
stimulate lower prices, and contribute towards better
value for money and innovative mobile services.
Other new licences
The auction process for one licence in the GSM 1800 MHz
frequency guard band was relaunched in February as
neither of the bids received at the end of 2008 complied
with the tender requirements. These frequencies can use
internet protocol (IP) based technologies for innovative
niche services needing wireless connection, such as
home delivery services, telemetry for fleets of vehicles,
public utilities and wireless security.
On 17 May TRA announced that Bahrain Broadband
WLL was the successful bidder with a bid of BD 50,000.
When combined with their investment in trialling the
technology, network investment and licence application
fees, this represents a total investment of BD2.4 million.
A total of 22 new licences, including this one, were issued
during 2009. The full list of licensees is in Annex A.
Future use of spectrum
At the end of the year TRA began consulting on current
and future requirements, use and management of radio
frequency spectrum. Wireless services are a key part of
TRA’s strategy to promote competition and innovation.
The revised National Frequency Plan (NFP), showing the
radio frequency bands available in the Kingdom for the
various radio communications services (as defined by
the International Telecommunication Union – ITU), was
published at the same time. This had been approved
by HE Shaikh Ahmed bin Ateyatullah Al Khalifa,
Minister of Cabinet Affairs, Minister responsible for
telecommunications. A frequency chart and a report on
developments in radio spectrum policy since 2006 were
also published.
One question in the consultation related to UHF
frequencies currently used for analogue television
transmission. Signals in these bands can travel over

significant distances and carry a large amount of
information. This makes them suitable for a wide range
of new services including:
- Ultra-fast mobile broadband
- Mobile television
- Digital television services, possibly in high definition
Other questions addressed spectrum rights and policy,
licensing issues, the migration of spectrum users and
appropriate next steps.
Spectrum planning must take account of technical
developments, market forces, social trends and
international developments – and the complex
interactions between these. There is also a long lead
time associated with the introduction of new services so
spectrum planning must take a long-term perspective.
The consultation closed in February 2010.
Action on illegal activities
TRA continued to protect both consumers and the
investment made by legitimate licensed operators. All
parties are encouraged to report to TRA any suspected
violations of the Telecommunications Law and any
potentially illegal operations.
During the year TRA used its search and inspection
powers under Article 77 of the Telecommunications Law
to crack down on illegal telecommunications activities.
In March TRA announced it had uncovered and seized
an unlicensed illegal service offering devices to the
public that were being used to support an international
calling service by individuals not licensed to provide
such a service. Consumers were then in danger of paying
unlicensed operators for unlicensed services.
Later in the year, in August, TRA took action to stop users
illegally operating a radio communications service in
parts of the 5 GHz frequency band reserved for official
users only. Members of the public can establish private
links using the 5.8 GHz band provided they comply
with regulations on its use and their equipment is
approved. The illegal users were causing interference
on legitimate services.
The team also found one user operating at over the
licensed transmit level. This user was unaware of their
violation and had relied on their equipment supplier to
set the levels.
Lawful access regulation
Under the Telecommunications Law (section 78) licensed
operators are required to provide the technical resources
needed for competent security authorities to access
their networks in meeting lawful access requirements.
In February TRA consulted on a draft regulation to
streamline the processes related to this and other
security matters such as access to communication logs.
This would require some changes to licensed operators’
core networks.
The competent authorities would have to follow a due
legal procedure and the regulation recognised TRA’s
obligation to protect consumer rights, their personal
information and privacy of services under section
3 of the Telecommunications Law. There was some
misunderstanding around this draft regulation and on
16 March TRA held a workshop to clarify matters.
The regulation was issued on 10 November.
Equipment approval regime
In March TRA began consulting on a new approval regime
for telecommunications equipment. This was in a draft
regulation that defined the roles and responsibilities of
both TRA and any individual or organisation wishing to
import telecommunications equipment into Bahrain.
The regulation, based on international standards,
aimed to make it quicker and easier for suppliers to
introduce new products into Bahrain for the benefit
of consumers. However, it also proposed a regime that
ensures the equipment is safe to use and does not harm
public telecommunications networks or cause radio
interference.
In a key new move, certain types of equipment – such
as standard mobile phones – displaying the CE mark
would not need prior approval by TRA. The CE mark is
awarded to equipment assessed against and complying
with essential European requirements.
TRA were preparing guidelines to help applicants with
the new regulation.
Call shops reseller agreement
In a move designed to lighten administrative burdens for
all parties, in November TRA produced a new procedure
for call shops. There are a large number of call shops in
Bahrain. Under the old procedure TRA had to review and

Building a Competitive Market
TRA Annual Report 2009
Page 31
approve all agreements between licensed operators and
call shop owners. It also had to ratify a copy of the MOIC
(Ministry of Industry and Commerce) form accompanying
the agreement.
Under the new procedure, the licensee providing services
through the call shop will:
- Apply to TRA by letter for prior written approval to
resell through call shops
- Negotiate terms with the call shop owner(s). TRA may
review the agreement at some point but will not be
part of the negotiations
- Submit a standard letter, signed by authorised
representatives from both the licensee and call shop,
to TRA together with any necessary MOIC form
The move did not affect existing call shop agreements.
TRA consultations procedures
In June TRA consulted on proposed changes to how it
consults with stakeholders. These updated the previous
arrangements set up in 2003 and covered four areas:
recognising the importance of the Arabic language,
making the form comments are submitted in more
flexible, amending the provisions on confidential
information and clarifying how TRA will report back on
consultations and views submitted.
TRA also aimed to reduce its carbon footprint by
publishing regulatory documents of wide interest – for
example the documents linked to the consultation on
spectrum use – on its website only.
Mergers and acquisitions
TRA did not oppose the following transactions under the
mergers and acquisitions procedures:
- Change in shareholders of Etisalcom Bahrain WLL
- Change of ownership of Orbit Communications
Company WLL

Market Indicators and Statistics
No. of Tariff
proposal requests
submitted by
Type of services Batelco* Approved Rejected Withdrawn
International calls 10 5 4 1
Fixed and mobile (National) 1 1
Fax 1 1
Internet 12 4 8
Mobile 8 6 2
Total 32 17 14 1
*In addition TRA has received about 30 temporary mobile promotions
Telecom Sector Revenues
228 235
253
285
303
338
152
2003 2004 2005 2006 2007 2008 2009
Figure 1: 11.6% growth in revenues between 2008 and
2009.
Broadband Subscribers
Broadband Penetration
13%
10%
157
7%
110
2%
2%
4%
39
15 21
2004 15 2005 21 2006 2007 2008 2009
Figure 2: The number of broadband subscribers increased
by 43% between 2008 and 2009.
74

Building a Competitive Market
TRA Annual Report 2009
Page 33
Number of Fixed Telephone Lines
Penetration
26%
175
24%
186
23%
192
22%
20%
194 194
204
20%
220
238
20% 20%
2002 2003 2004 2005 2006 2007 2008 2009
Figure 3: The number of fixed lines grew by 8% between
2008 and 2009.
Mobile Subscribers
Mobile Penetration
130%
1,440,782 120%
1,401,974
107%
94% 1,115,979
79%
86%
45%
300,829
51%
390,253
649,764
767,103
907,433
2002 2003 2004 2005 2006 2007 2008 2009
Figure 4: At the end of 2009 there were about 1.4 million
mobile subscribers in the Kingdom of Bahrain.
Note: Mobile Subscribers dropped in 2009 as a consequence of disconnecting
unregistered prepaid mobile SIMs and the compliance by Batelco with the
ITU active prepaid subscribers’ definition.

FORGING LINKS
TRA continued to
build strong links
with organisations
and groups within
the Kingdom, within
the region and
within the global
telecommunications
market. This is an
important aspect of
the regulator’s work
in ensuring that
consumers, the industry
and investors are kept
up to date and that
the Kingdom becomes
recognised as a leading
telecommunications
market. During 2009
Bahrain hosted major
international events,
emphasising its
growing status in the
telecommunications
world.
International events
ICC Telecommunications and Media Forum
On 5 and 6 May the Telecommunications and Media Forum
of the International Institute of Communications (IIC) held
its first meeting in the Middle East region in Manama at
TRA’s invitation. The theme was convergent communications
– Building Digital Broadband for the Future: Market and
Policy Implications. Participants addressed a wide range of
issues on the subject, from the economic and social impact
of broadband to the role of regulation and public policy in
promoting national broadband development and use.
The IIC Telecommunications and Media Forum was founded
40 years ago and is an independent, non-governmental
global network for senior players in broadcasting,
telecommunications and electronic media. Its goal is to
provide a global framework for dialogue on the critical
forces shaping communications markets and their impact
on society, and to promote access to communications for all.
The Forum meets three times a year in different locations
including annually in Brussels and Washington DC.
Conference on national security and infrastructure
protection
On 22 and 23 June TRA’s ICT Operations Manager, Mr. Ahmed
Aldoseri, participated in a conference on national security
and the protection of telecommunications infrastructure –
both issues raised in Bahrain during the year. The conference
was held in Abu Dhabi and again the audience came from
the MENA region. Mr. Aldoseri addressed the need to adopt
international best practice in protecting infrastructure from
interruptions due to natural causes, accidents or deliberate
acts. He emphasised the need for co-operation in these
matters.

Forging Links
TRA Annual Report 2009
Page 35
TRA Chairman speaking at the ICC Telecommunications and Media Forum
TRA was in the process of developing a comprehensive
plan to address the risks associated with telecommunications
networks, including the possibility of a major disruption
to basic services.
WiMAX conference
TRA’s Technical and Operations Director, Mr. Mohammed
Mahmood, spoke at a conference on WiMAX held in Dubai
on 23 and 24 June. Participants were from the Middle
East and North Africa (MENA) region. Mr. Mahmood
spoke about the success of WiMAX services in Bahrain
aided by the provision of the necessary radio frequencies
through a clear national frequency management
plan together with an open and competitive licensing
process, and technology neutral licensing regime.
The participants were particularly impressed by TRA’s
strategy for providing WiMAX services in Bahrain and by
TRA’s transparent approach that provides clear direction
for both operators and investors in the Kingdom’s
telecommunications market.
Telecommunications Law and Regulations in the
Middle East 2009 Conference
TRA’s Chief Economist, Dr. Alexandre Serot, and TRA’s
Director of Legal Affairs, Mr. Eamon Holley, spoke at the
annual conference on Telecommunications Law and
Regulation in the Middle East which was held in Dubai on
14 and 15 October. Mr Holley spoke about infrastructure
sharing and how it can avoid unnecessary duplication
of infrastructure and help contain investment cost while
fostering competition. Dr Serot gave a presentation on
the balance between ex ante and ex post intervention
in the telecommunications sector. He highlighted the
need to open markets to competition, conduct regular
market reviews and periodically adjust regulation in a
transparent fashion and based on sound analysis.
ITS conference
On 26 October TRA opened the 20th European Regional
Conference of the International Telecommunications
Society (ITS) – the first time this event had been held in the
TRA Chairman speaking at the ITS conference

TRA workshop on price benchmarking
MENA region. The theme of the three-day conference was
Telecommunications in the Broader Society: Maximising
the benefits and reducing the risks. Participants were
top names from international operators, regulators and
academia.
TRA’s Chairman, Dr. Mohammed Ahmed Al Amer, opened
the conference with a keynote speech welcoming both
the delegates and the opportunity the conference
offered to ensure that Bahrain is at the forefront of
international best practice in regulating a competitive
market.
The aim of the conference was to discuss not only
issues within the telecommunications sector but also
the interaction between the sector and the wider socioeconomic
environment, ranging from international
trade to environmental impacts as well as addressing
the needs of low income or special needs consumers.
TRA presented the full Renesys study giving a snapshot
of the internet ‘ecosystem’ in the Kingdom (see Building
a Competitive Market).
Topics on the agenda included next generation
networks, mobile business models, economic and social
sustainability, internet regulation, infrastructure growth,
and competition and regulatory challenges.
Other international links
AREGNET
TRA continued to participate in meetings of the Arab
Regulators’ Network (AREGNET) having handed over
the Presidency to Tunisia in 2008. TRA took part in the
Tunisia update meeting held in May and the Plenary
organised by CITC, the Saudi regulator which currently
holds the Presidency of AREGNET. Progress on protecting
consumers from high mobile roaming tariffs in the region
has been made through this network (see Working for
Consumers). In addition TRA leads the work of AREGNET
on benchmarking and its two annual flagship studies,
one on retail price benchmarking and one on wholesale
and regulatory measures benchmarking.
US Ambassador visits TRA
In August HE Mr. Adam Ereli, the Ambassador of the
United States of America, visited TRA. His meeting with
the General Director focussed on inward investment and
the importance of diverse and reliable international
connectivity to Bahrain to support foreign investors
and content providers, including Google and Amazon.
Achieving high quality international telecommunications
services, including internet, combined with international
best prices were key factors. Training and the development
of Bahraini talents within the ICT and related sectors
were also discussed. Bahrain is working with the joint US
forces to establish a centre of excellence for command,
control, communications and computer (C4) systems
that will serve the region as whole.
The Ambassador commented that Bahrain was
well positioned to become a regional hub for
telecommunications services and ICT training. He
praised TRA’s role in creating a healthy environment for

Forging Links
TRA Annual Report 2009
Page 37
TRA – Industry end of year review meeting
businesses to operate in, and he undertook to encourage
American companies to establish operations in the
Kingdom.
Internal links
Bahrain British Business Forum
In April the General Director addressed the monthly
meeting of the Bahrain British Business Forum (BBBF).
In his presentation the General Director urged businesses
and public bodies to take advantage of liberalisation
and the choices now available in telecommunications
services. He recommended that they set out an
information management/ICT policy. More than 90
members attended this event.
Other links
Throughout the year, TRA continued to work closely with
the telecommunications operators in the Kingdom and
other key stakeholders, including consumer groups,
within the sector and also in related sectors – for example
new property developers and Councils (see Building
a Competitive Market and Working for Consumers). In
November TRA again hosted a successful end-of-year
review meeting with the operators. This has now become
an established date in the regulatory calendar.

INSIDE TRA
The world of telecommunications
changes
very fast. Our focus
this year has been on
training and developing
our staff to meet the
demands of today’s
regulatory landscape.
All TRA team members
have clear performance
targets supported by
regular training and
skill development programmes.
The team’s expertise has shown particularly in the moves
to stimulate long-term growth in broadband services and
the action taken on illegal activities. The team continues
to meet all the challenges together and deliver a high
standard of output for consumers, operators and the
economy of Bahrain.
At the end of the year we developed new vision and mission
statements (see the beginning of this Report). We also set out
our values:
- Inspiring: our imagination, clarity of thought and clear
leadership stimulates innovative thinking that meets the
needs of tomorrow
- Commitment: our drive and determination to achieve
excellence, our discipline in the execution of our duties,
our focus on the development of our team, and our
sense of responsibility instil passion for the development
of the Kingdom of Bahrain
- Respect: our respect for each other is ensured by listening,
collaborating and having consideration for each other,
the public and licensees we work for, the environment
and future generations
- Balanced: our evidence based approach to decision
making and our adaptability ensure that we remain
proportionate, consistent, fair and just
- Transparency: our open and inclusive approach to
regulation ensures that we are held responsible and our
actions and decisions are understood
TRA Team

Inside TRA
TRA Annual Report 2009
Page 39
Presentation skills and public speaking training
Senior TRA staff
At the end of November the General Director,
Mr. Alan Horne, stepped down after three years in the
post. In announcing his decision the General Director
highlighted, as the areas of highest achievement
during his tenure, the progress made on the improved
skills and competency of the TRA team together with
the clear work programme to protect consumers,
develop fair competition and remove barriers to new
entrants.
There were three senior appointments during the year.
In July Mr. Basil Al-Arrayed was appointed as the
Communications and Consumer Affairs Director.
Mr. Al-Arrayed joined with 12 years experience in Mass
Communications, Public Relations and Marketing, latterly
with the global marketing organisation JWT Advertising,
where he developed the strategic framework for throughthe-line
marketing of Zain in Bahrain.
In September Mr. Nick Truman was appointed as TRA’s
Specialist ICT Security Advisor. Mr. Truman’s previous
post was as Head of Internet Security for the UK’s
largest Internet Service Provider (ISP), British Telecom
(BT). In his new post he will lead the activities of TRA,
government and industry in developing internet safety
and security policies to support the Kingdom becoming
a world-class digital nation offering a high-class online
user experience.
In September Mr. David Court was appointed as TRA’s
Spectrum Advisor. In 1998 Mr. Court established
Connogue Limited, an Irish registered company, to
provide specialist telecommunications consultancy
services, in the field of radiocommunications, radio
based services and spectrum management.
An organogram showing the structure of TRA can be
found near the beginning of this Report.
In addition, TRA continued to extend its expertise in
various field such as Legal, Economics, Technical, ICT,
and Communications & Consumer Affairs. By the end of
2009 the total number of staff had increased to 43.
Training
Training and development of staff continued to be a
high priority in order to ensure that TRA could meet
international standards in the way it regulated. TRA is
developing its local team through a range of techniques
including coaching, education, external training courses
and in-house training sessions.
In the summer TRA conducted a series of training
programs to develop its staff’s knowledge and expertise.
These focussed particularly on presentation skills and
public speaking, handling the media and first aid. All
staff benefit from a common set of skills development
training which includes time management, project
management, presentational and public speaking skills,
Microsoft Office and English technical writing.

First Aid Training
In June TRA met with the Labour Fund – Tamkeen –
to discuss the development of professional training
initiatives covering ICT and regulatory issues. The aim
was to boost the skills of the Bahraini workforce in these
areas. Tamkeen already had a strong suite of training
programs in place for the ICT and IT sectors as well as
an innovative support system for small and mediumsized
enterprises (SMEs) in this sector. TRA signed a
Memorandum of Understanding with Tamkeen to
strengthen their partnership by exchanging views on
policies and mechanisms that will enhance the capabilities
of Bahrainis and make them the preferred choice for
employment in the telecommunications sector.
Awards
In recognition of the advancements in the regulatory
environment of the Kingdom of Bahrain, TRA has
been declared the winner of prestigious awards: Best
Regulator award for 2009 by Comms MEA Magazine in
Dubai, and the Most Progressive Regulator award for
2009 by the South Asia, Middle East, and North Africa
(SAMENA) Telecommunications Council at its annual
Conference in Istanbul.
Chosen among regulators from 25 countries, TRA
Bahrain won the two annual awards in recognition of
its achievements. Criteria included such aspects as use
Handling Media Training

Inside TRA
TRA Annual Report 2009
Page 41
TRA Chairman receiving Comms MEA Magazine Award
of a transparent consultation process in developing
regulations, frequency of publishing reports and
regulations, operators’ adaptation to rules and
regulations, consulting on and publishing regulatory
plans, conducting and publishing QoS surveys,
effectiveness of operator conflict resolution measures,
steps taken to remove barriers for the new players in the
market and frequency of website updating.
TRA Chairman receiving SAMENA Award

STATEMENT
OF ACCOUNTS
Independent Auditors’
Report to the Board
of Directors of
Telecommunications
Regulatory Authority
Report on the financial
statements
We have audited the accompanying
financial statements of
Telecommunications Regulatory
Authority (“the Authority”), which
comprise the statement of financial
position as at 31 December 2009, the
statement of comprehensive income,
the statement of accumulated
surplus, the statement of cash flows
for the year then ended, and the
notes to the financial statements
comprising a summary of significant
accounting policies and other
explanatory information. The
financial statements of the Authority
for the year ended 31 December 2008,
were audited by another auditor
whose report dated 19 July 2009,
expressed an unqualified opinion on
those statements.
Board of Directors’ responsibility
for the financial statements
The Board of Directors of the
Authority are responsible for the
preparation and fair presentation
of these financial statements in
accordance with International
Financial Reporting Standards. This
responsibility includes: designing,
implementing and maintaining
internal control relevant to the
preparation and fair presentation
of financial statements that are
free from material misstatements,
whether due to fraud or error;
selecting and applying appropriate
accounting policies; and making
accounting estimates that are
reasonable in the circumstances.
Auditor’s responsibility
Our responsibility is to express
an opinion on these financial
statements based on our audit. We
conducted our audit in accordance
with International Standards on
Auditing. Those standards require
that we comply with relevant ethical
requirements and plan and perform
the audit to obtain reasonable
assurance whether the financial
statements are free from material
misstatement.
An audit involves performing
procedures to obtain audit evidence
about the amounts and disclosures
in the financial statements. The
procedures selected depend on
our judgment, including the
assessment of the risks of material
misstatement of the financial
statements, whether due to fraud
or error. In making those risk
assessments, we consider internal
control relevant to the entity’s
preparation and fair presentation
of the financial statements in order
to design audit procedures that are
appropriate in the circumstances,
but not for the purpose of
expressing an opinion on the
effectiveness of the entity’s internal
control. An audit also includes
evaluating the appropriateness of
accounting principles used and
the reasonableness of accounting
estimates made by management,
as well as evaluating the overall
presentation of the financial
statements.
We believe that the audit evidence
we have obtained is sufficient and
appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial
statements present fairly, in all
material respects, the financial
position of the Authority as at 31
December 2009, and of its financial
performance and its cash flows for
the year then ended in accordance
with International Financial
Reporting Standards.
10th November 2010
Manama, Kingdom of Bahrain

Balance Sheet
TRA Annual Report 2009
Page 43
BALANCE SHEET
31 December 2009
2009 2008
BD
BD
ASSETS
Non-current assets
Plant and equipment 1,276,848 88,511
Current assets
Licence fees and other receivables 1,213,566 1,510,295
Cash and cash equivalents 19,091,084 13,447,811
20,304,650 14,958,106
TOTAL ASSETS 21,581,498 15,046,617
ACCUMULATED FUNDS AND LIABILITIES
Accumulated surplus 20,920,487 14,261,728
Reserve for commitments - 552,457
20,920,487 14,814,185
Non-current liabilities
Employees’ terminal benefits 25,536 23,730
Current liabilities
Trade and other payables 635,475 208,702
TOTAL EQUITY AND LIABILITIES 21,581,498 15,046,617
The financial statements were authorised for issue in accordance with a resolution of the Directors on 10 November 2010.
Dr. Mohammed Ahmed Al Amer
Chairman and Acting General Director
Mohammed Nasser Ali
Director - Finance and Administration

STATEMENTS OF INCOME AND
ACCUMULATED SURPLUS
Year ended 31 December 2009
STATEMENT OF INCOME
2009 2008
BD
BD
INCOME
Licence fees 21,048,030 13,506,011
Frequency and spectrum fees 2,686,204 2,069,723
Interest income 519,484 519,535
24,253,718 16,095,269
EXPENDITURE
Staff costs (1,701,938) (1,312,007)
Board of Directors’ remuneration (88,000) (93,999)
General and administrative expenses (444,922) (284,837)
Consultancy and legal fees (1,105,577) (570,546)
Publicity and promotions (773,469) (196,699)
Depreciation (52,174) (32,639)
Finance cost (3,048) (1,051)
(4,169,128) (2,491,778)
EXCESS OF INCOME OVER EXPENDITURE FOR THE YEAR
TRANSFERRED TO ACCUMULATED SURPLUS 20,084,590 13,603,491
STATEMENT OF ACCUMULATED SURPLUS
Accumulated Reserve for
surplus commitments Total
BD BD BD
Balance at 31 December 2007 54,856 1,210,694 1,265,550
Payment to the Ministry of Finance (54,856) - (54,856)
Surplus for the year 13,603,491 - 13,603,491
Net reversal from reserve 658,237 (658,237) -
Balance at 31 December 2008 14,261,728 552,457 14,814,185
Payment to the Ministry of Finance (13,978,288) - (13,978,288)
Surplus for the year 20,084,590 - 20,084,590
Net reversal from reserve 552,457 (552,457) -
Balance at 31 December 2009 20,920,487 - 20,920,487

Statement of Cash Flows
TRA Annual Report 2009
Page 45
STATEMENT OF CASH FLOWS
Year ended 31 December 2009
OPERATING ACTIVITIES
2009 2008
BD
BD
Excess of income over expenditure for the year 20,084,590 13,603,491
Adjustments for:
Depreciation 52,174 32,639
Finance Charges 3,048 1,051
Changes in operating assets and liabilities:
Licence fees and other receivables 296,729 (1,308,515)
Trade and other payables 426,773 (6,280,908)
Employees’ terminal benefits, net 1,806 -
Cash provided by operating activities 20,865,120 6,047,758
Finance costs paid (3,048) (1,051)
Net cash provided by operating activities 20,862,072 6,046,707
INVESTING ACTIVITIES
Purchase of plant and equipment (1,240,511) (95,057)
Payment made to Ministry of Finance (13,978,288) (54,856)
Net cash used in investing activities (15,218,799) (149,913)
NET INCREASE IN CASH AND CASH EQUIVALENTS 5,643,273 5,896,794
Cash and cash equivalents, beginning of year 13,447,811 7,551,017
CASH AND CASH EQUIVALENTS, END OF THE YEAR 19,091,084 13,447,811

ANNEXES
Annex A
Telecommunications Licences issued to operators as of 2009
CLASS LICENSE FOR INTERNET SERVICES
Licensed Company Name
Bahrain Telecommunications Company (BATELCO) B.S.C.
MTC-Vodafone Bahrain B.S.C. (closed)
Gateway Gulf Company B.S.C. (closed)
Tasameem Est for Information Technology
Arabian Network Information Services W.L.L.
2Connect W.L.L.
MENA Telecom W.L.L.
Northstar Technology Company W.L.L.
Business Communications Networks
Kalam Telecom Bahrain B.S.C. (closed)
Nuetel Communications S.P.C.
Etisalcom Bahrain Company W.L.L.
Central Informatics Organization (CIO)
Orbit Communications Company W.L.L.
Viacloud W.L.L.
Lightspeed Communications W.L.L.
Tele Gulf W.L.L.
Voice Stream S.P.C.
Elephant Talk Bahrain W.L.L.
Ascentech Technical Services
Kuwait Establishment General Trading & Contracting
Circletel Consultancies Company W.L.L.
Golden Star Telecommunications W.L.L..
Skyfi Networks W.L.L.
Bahrain Petroleum Company
Rawabi Telecommunications and Software Co. Ltd.
Golden Sands Electronica and Phone
ICOL Plus W.L.L.
Kulacom Communication S.P.C.
Zajil Information Technologies International
Life Communication B.S.C. (closed)
Saudi Telecommunications Company (STC) - Bahrain B.S.C.
Atyaf Telecommunications and Infrastructure Bahrain W.L.L.
Bahrain Broadband Co. W.L.L.
Rapid Telecommunications W.L.L.
CLASS LICENSE FOR VALUE ADDED SERVICES (VAS)
Licensed Company Name
Bahrain Telecommunications Company (BATELCO) B.S.C.
MTC-Vodafone Bahrain B.S.C. (closed)
Socite International De Telecommunications Aerona
Gateway Gulf Company B.S.C. (closed)
BT Solutions Ltd. (Bahrain Branch)
Arabian Network Information Services W.L.L.
Date of Issue
21-Jun-03
18-Aug-03
25-Sep-03
29-Sep-03
4-Apr-04
6-Sep-04
3-Nov-04
22-Mar-05
11-May-05
11-May-05
15-May-05
26-Jul-05
28-Aug-05
28-Aug-05
21-Sep-05
22-Sep-05
18-Jan-06
22-Jun-06
11-Jul-06
1-Nov-06
11-Feb-07
21-Mar-07
2-Apr-07
23-Jul-07
8-Aug-07
17-Oct-07
4-Nov-07
12-Nov-07
17-Jan-08
5-Mar-08
14-Sep-08
26-Jul-09
27-Jul-09
29-Jul-09
6-Sep-09
Date of Issue
21-Jun-03
18-Aug-03
31-Aug-03
25-Sep-03
20-Mar-04
4-Apr-04

Annex A (continued)
TRA Annual Report 2009
Page 47
Bahrain Call
Infonet
Star Telemedia
Rawabi Al Bahrain Co. W.L.L.
MENA Telecom W.L.L.
2Connect W.L.L.
Mobile Information Services
ICOL Plus W.L.L.
Etisalcom Bahrain Company W.L.L.
Northstar Technology Company W.L.L.
Kalam Telecom Bahrain B.S.C. (closed)
Fakhroo Information Technology Services W.L.L.
Lightspeed Communications W.L.L.
Kasiopia NetCom-KNC, (Bahrain)
Viacloud W.L.L.
Business Communications Networks
Nuetel Communications S.P.C.
Orbit Communications Company W.L.L.
Star Gate Telecommunication W.L.L.
Fusion Bahrain W.L.L.
Access Telecommunication W.L.L.
Tele Gulf W.L.L.
Bahrain Broadband Co. W.L.L.
Media Phone Plus General Trading
Smart Marketing Co.
Neema Graphics
Digi Connect Co. W.L.L.
Invita Company B.S.C. (closed)
Mobilink Co. W.L.L.
Cellucom W.L.L.
Swiftel International Co. W.L.L.
Red Moon Communications S.P.C.
Voice Stream S.P.C.
Ascentech Technical Services
Elephant Talk Bahrain W.L.L.
First International Network
Golden Star Telecommunications W.L.L.
OSS Telecommunication W.L.L..
Rawabi Telecommunications and Software Co. Ltd.
MENA Business Services (Foreign Branch)
Kulacom Communication S.P.C.
Al Ghazal Telecommunications Co. W.L.L.
Zajil Information Technologies International
Life Communication B.S.C. (closed)
Callforeign Middle East S.P.C.
Mobitel Communications W.L.L.
Saudi Telecommunications Company (STC) - Bahrain B.S.C.
Atyaf Telecommunications and Infrastructure Bahrain W.L.L.
Rapid Telecommunications W.L.L.
INDIVIDUAL LICENSE FOR INTERNATIONAL TELECOMMUNICATIONS FACILITIES
Licensed Company Name
Bahrain Telecommunications Company (BATELCO) B.S.C.
MTC-Vodafone Bahrain B.S.C. (closed)
MENA Telecom W.L.L.
Kasiopia NetCom-KNC, (Bahrain)
Viacloud W.L.L.
Northstar Technology Company W.L.L.
FLAG Telecom Group Limited-Bahrain (Branch Office)
Nuetel Communications S.P.C.
20-Jun-04
27-Jun-04
12-Jul-04
25-Oct-04
3-Nov-04
4-Dec-04
8-Feb-05
15-Feb-05
19-Mar-05
22-Mar-05
18-Apr-05
19-Apr-05
26-Apr-05
27-Apr-05
27-Apr-05
11-May-05
15-May-05
28-Aug-05
21-Sep-05
25-Sep-05
15-Oct-05
15-Oct-05
1-Nov-05
7-Jan-06
7-Jan-06
1-Feb-06
1-Feb-06
28-Feb-06
28-Feb-06
7-May-06
8-May-06
4-Jun-06
22-Jun-06
28-Jun-06
11-Jul-06
14-Jan-07
2-Apr-07
1-Jul-07
30-Oct-07
28-Nov-07
17-Jan-08
13-Feb-08
5-Mar-08
14-Sep-08
3-Feb-09
19-Mar-09
26-Jul-09
27-Jul-09
6-Sep-09
Date of Issue
21-Jun-03
9-May-04
3-Nov-04
27-Feb-05
27-Feb-05
22-Mar-05
20-Apr-05
15-May-05

Orbit Communications Company W.L.L.
Gateway Gulf Company B.S.C. (closed)
Etisalcom Bahrain Company W.L.L.
Kuwait Establishment General Trading & Contracting
Golden Star Telecommunications W.L.L.
OSS Telecommunication W.L.L.
Rawabi Telecommunications and Software Co. Ltd.
Saudi Telecommunications Company (STC) - Bahrain B.S.C.
Rapid Telecommunications W.L.L.
Mada Communication Company S.P.C.
Bahrain Internet Exchange
INDIVIDUAL LICENSE FOR INTERNATIONAL TELECOMMUNICATIONS SERVICES
Licensed Company Name
Bahrain Telecommunications Company (BATELCO) B.S.C.
MTC-Vodafone Bahrain B.S.C. (closed)
IMC Telecom W.L.L.
MENA Telecom W.L.L.
Digi Connect Co. W.L.L.
2Connect W.L.L.
Socite International De Telecommunications Aerona
Etisalcom Bahrain Company W.L.L.
Northstar Technology Company W.L.L.
Kalam Telecom Bahrain B.S.C. (closed)
Fakhroo Information Technology Services W.L.L.
Lightspeed Communications W.L.L.
Kasiopia NetCom-KNC, (Bahrain)
Viacloud W.L.L.
Business Communications Networks
Nuetel Communications S.P.C
Arabian Network Information Services W.L.L.
Voice Stream S.P.C.
BT Solutions Ltd (Bahrain Branch)
Orbit Communications Company W.L.L.
Star Gate Telecommunication W.L.L.
Fusion Bahrain W.L.L.
Access Telecommunication W.L.L.
Tele Gulf W.L.L.
Gateway Gulf Company B.S.C. (closed)
Allied Engineering Group W.L.L.
Bahrain Broadband Co. W.L.L.
EGN B.V. Equant Global Network (Foreign Branch)
Swiftel International Co. W.L.L.
Ascentech Technical Services
Elephant Talk Bahrain W.L.L.
First International Network
Kuwait Establishment General Trading & Contracting
Golden Star Telecommunications W.L.L.
OSS Telecommunication W.L.L.
Rawabi Telecommunications and Software Co. Ltd.
Al Zubara International Trading
Hawar Telecommunications Company W.L.L.
Kulacom Communication S.P.C.
Al Ghazal Telecommunications Co. W.L.L.
Zajil Information Technologies International
Life Communication B.S.C. (closed)
Callforeign Middle East S.P.C.
Rapid Telecommunications W.L.L.
Mada Communication Company S.P.C.
28-Aug-05
17-Oct-05
25-Aug-06
11-Feb-07
2-Apr-07
1-Jul-07
28-Jul-08
26-Jul-09
6-Sep-09
17-Sep-09
13-Dec-09
Date of Issue
21-Jun-03
1-Jul-04
29-Aug-04
3-Nov-04
3-Nov-04
4-Dec-04
13-Mar-05
19-Mar-05
22-Mar-05
18-Apr-05
26-Apr-05
26-Apr-05
27-Apr-05
27-Apr-05
11-May-05
15-May-05
5-Jun-05
18-Jun-05
23-Jul-05
28-Aug-05
21-Sep-05
25-Sep-05
15-Oct-05
15-Oct-05
17-Oct-05
24-Oct-05
1-Nov-05
15-Nov-05
8-May-06
5-Jul-06
11-Jul-06
14-Jan-07
11-Feb-07
2-Apr-07
1-Jul-07
30-Oct-07
25-Nov-07
9-Dec-07
17-Jan-08
13-Feb-08
5-Mar-08
14-Sep-08
3-Feb-09
6-Sep-09
17-Sep-09

Annex A (continued)
TRA Annual Report 2009
Page 49
INDIVIDUAL LICENSE FOR MOBILE TELECOMMUNICATIONS
Licensed Company Name
MTC-Vodafone Bahrain B.S.C. (closed)
Bahrain Telecommunications Company (BATELCO) B.S.C.
Saudi Telecommunications Company (STC) - Bahrain B.S.C.
INDIVIDUAL LICENSE FOR NATIONAL FIXED SERVICES
Licensed Company Name
Bahrain Telecommunications Company (BATELCO) B.S.C.
Lightspeed Communications W.L.L.
Nuetel Communications S.P.C.
2Connect W.L.L.
Kalam Telecom Bahrain B.S.C. (closed)
MENA Telecom W.L.L.
Etisalcom Bahrain Company W.L.L.
Elephant Talk Bahrain W.L.L.
Golden Star Telecommunications W.L.L.
Kulacom Communication S.P.C.
Rawabi Telecommunications and Software Co. Ltd.
Life Communication B.S.C. (closed)
Atyaf Telecommunications and Infrastructure Bahrain W.L.L.
Bahrain Broadband Co. W.L.L.
Rapid Telecommunications W.L.L.
INDIVIDUAL LICENSE FOR PAGING SERVICES
Licensed Company Name
Bahrain Telecommunications Company (BATELCO) B.S.C.
INDIVIDUAL LICENSE FOR PUBLIC ACCESS MOBILE RADIO SERVICES
Licensed Company Name
Bahrain Telecommunications Company (BATELCO) B.S.C.
INDIVIDUAL LICENSE FOR VERY SMALL APERTURE TERMINAL (VSAT)
Licensed Company Name
Bahrain Telecommunications Company (BATELCO) B.S.C.
Bahrain Car Racing Circuit (BCRC)
Gulf Aluminum Rolling Mill Co. B.S.C. (GARMCO)
MTC-Vodafone Bahrain B.S.C. (closed)
Bahrain Petroleum Company
Court of Crown Prince
Bahrain Training Institute
BNP Paribas
Awal Bank B.S.C. (closed)
Gulf International Bank B.S.C.
INTERNET EXCHANGE LICENSE
Licensed Company Name
Bahrain Internet Exchange
Gateway Gulf Company B.S.C. (closed)
Rapid Telecommunications W.L.L.
NATIONAL FIXED WIRELESS SERVICES LICENSE (NFWS)
Licensed Company Name
MENA Telecom W.L.L.
MTC-Vodafone Bahrain B.S.C. (closed)
Date of Issue
22-Apr-03
21-Jun-03
1-Mar-09
Date of Issue
21-Jun-03
26-Apr-05
15-May-05
1-Aug-05
14-Aug-05
23-Jan-06
15-May-06
11-Jul-06
2-Apr-07
17-Jan-08
28-Jul-08
14-Sep-08
27-Jul-09
29-Jul-09
6-Sep-09
Date of Issue
21-Jun-03
Date of Issue
21-Jun-03
Date of Issue
21-Jun-03
14-Mar-04
9-May-04
9-May-04
27-Oct-04
20-Jan-05
13-Mar-05
15-May-05
21-Oct-07
19-Mar-09
Date of Issue
14-Mar-04
13-May-07
6-Sep-09
Date of Issue
8-Jan-07
8-Jan-07

Annex B
CONSULTATIONS
Consultation
Consultation on the Regulation concerning the requirements of National Security
Consultation regarding the Draft Regulation on the Approval of Telecommunications Equipment
Consultation on Appropriate approach for the implementation of
Local Loop Unbundling (LLU) in the Kingdom of Bahrain
Consultation on Study on the Regulation of Wholesale Broadband Markets
Draft Access Order Relating to Unbundling Local Loop, Bitstream and Wholesale DSL
Dominance Designation in Wholesale Broadband Markets Draft Determination
Local Loop Unbundling Consultation
Consultation regarding the Arab Memorandum of Understanding on the
Regulation of the International Mobile Roaming
Public Consultation on Amending some provisions of the Regulation issued by
Decision No. 1 of 2008 on Notification of International Roaming Tariffs by SMS
and published in Official Gazette No. 2855.
Consultation regarding the Draft Position Paper on the Deployment of
Telecommunications Networks in New Property Developments
Rebalancing for Fixed Services and Price Monitoring Draft Statement
Consultation on Retail Tariff Notification Framework
Consultation on Consumer Protection Guidelines
Public Consultation on Amending some provisions of the Consultation Process
Regulation issued on 10 August 2003
Public Consultation on Regulation on Unsolicited Bulk Messages
Cost of Capital Draft Determination
Repeal of the Determination on the Methodology for the
Definition of Telecommunication Markets and Determination on
the Methodology for Determining Market Power Draft Determination
Public consultation to ascertain potential future demand for
Radio Spectrum Frequencies in the Kingdom of Bahrain
Consultation Report on Responses received in relation to the consultation
document on a draft regulation regarding Lawful Access
Annex C
Date of Issue
25-Feb-09
5-Mar-09
26-Mar-09
26-Mar-09
26-Mar-09
26-Mar-09
26-Mar-09
20-Apr-09
7-May-09
27-May-09
31-May-09
31-May-09
15-Jun-09
17-Jun-09
5-Jul-09
20-Jul-09
27-Aug-09
10-Dec-09
24-Dec-09
REGULATIONS, DETERMINATIONS AND DECISIONS
No. Regulations, Determinations and Decisions Date of Issue
Case No. 01/09
Decision on TRA case reference no. 1/09 – Etisalcom Bahrain W.L.L.
(Amendments to Shareholders)
31-Mar-09
Case No. 02/09 Decision on TRA case reference No. 02/09 –
Orbit Communications Company W.L.L. (change of ownership) 22-Jun-09
Case No. 03/09
TRA Case Reference No. 03/09 – Etisalcom Bahrain Company W.L.L.
(change of Shareholding
20-Jul-09
Dominance Determination
1 of 2009 Dominance Determination in Wholesale Broadband Markets 14-Sep-09
Regulation No. 2 of 2009 Wireless Telecommunications Network Facility Sharing Regulation 8-Oct-09
Cost of Capital Determination
3-Nov-09
Resolution No. (9)
of the year 2009 Regulation requiring Licensees to implement Lawful Access 12-Nov-09
Annex D
ORDERS
Order No. Orders Date of Issue
Order 1 of 2009
Order to Batelco relating its Charges of the Bitstream and
Wholesale DSL Services
24-May-09
Access Order 1 of 2009 Access Order Relating Local Loop Unbundling, Bitstream and
Wholesale DSL issued pursuant to the Access Regulation
14-Sep-09
Article 35 Order No. 1 of 2009 Order to Batelco on access to the Landing Station for the
FALCON submarine cable
24-Nov-09