Annual Report 2008 - TRA - Telecommunication Regulatory Authority

We regulate 

We help 

2008 ANNUAL REPORT 

We protect

H. H. Shaikh Khalifa Bin Salman Al Khalifa 

The Prime Minister 

H. M. King Hamad Bin Isa Al Khalifa 

The King of Bahrain 

H. H. Shaikh Salman Bin Hamad Al Khalifa 

The Crown Prince & Deputy Supreme 

Commander of the BDF

OUR VISION 

To develop the Kingdom of Bahrain as the 

region’s most modern communications hub 

and to facilitate the development of the 

telecommunications market. 

OUR MISSION 

To protect the interests of subscribers and 

users of telecommunications services as well as 

maintain effective and fair competition between 

established service providers and new entrants to 

the telecommunications market of the 

Kingdom of Bahrain.

CONTENTS 

Board of Directors 2 

The Telecommunications Regulatory Authority (TRA) 3 

Chairman’s Statement 4 

General Director’s Statement 6 

Highlights of 2008 10 

Working for Consumers 12 

The New Advisory Bodies 13 

The Consumer Advisory Group 13 

The Business Users Advisory Group 14 

Network Security 14 

International Roaming Tariffs 14 

Retail Tariffs 14 

Quality of Services 15 

Registration of Prepaid Mobile Subscriber Details 15 

Consumer Complaints 15 

Building a Competitive Market 16 

The Second National Telecommunications Plan 17 

Strategic and Retail Market Review 17 

Third Mobile Licence 18 

Local Loop Unbundling 19 

Competition Guidelines 19 

Number Portability 19 

National Numbering Plan 20 

Spectrum Issues 20 

Interconnection - the Wholesale Offer 21 

Telecommunications Infrastructure 22 

Enforcement Actions 23 

Licensing 24 

Licence Fees 24 

Mergers and Acquisitions 24 

Market Indicators and Statistics 25 

Forging Links 28 

International 29 

Local 30 

Inside TRA 32 

Statement of Accounts 34 

Annexes 38

2 

TRA Annual Report 2008 

Board of Directors 

02 

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, following a proposal from the Council of Ministers of the Kingdom of Bahrain. 

At the end of 2008 the Board was as follows: 

Dr. Mohammed Ahmed Al Amer 

Chairman 

Shaikh Hamad bin 

Mohammed bin Hamad 

Al Khalifa 

Dr. Taqi Abdul Rasool Al Zeera Colonel Riyadh Eid Abdulla Mr. Tariq Abdul Jalil Al Saffar

The Telecommunications Regulatory Authority (TRA) 

TRA Annual Report 2008 3 

03 

AUTHORITY 

THE TELE- 

COMMUNICATIONS 

REGULATORY 

(TRA) 

TRA was set up in October 2002 by Legislative Decree No. 48 under the Telecommunications Law. TRA is an independent 

body overseen by the Board of Directors. The General Director of TRA is responsible for the day-to-day operation 

of the authority. The General Director is appointed by His Majesty the King, Hamad bin Isa 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. In December 2006, Mr. Alan Horne was selected as TRA General Director, 

and was formally appointed in March 2007 by His Majesty the King, Hamad bin Isa Al Khalifa. 

The duties of TRA include protecting the interests of subscribers and users of telecommunications services 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. 

BOARD OF DIRECTORS 

General Director 

Deputy 

General Director 

Communications & 

Consumer Affairs 

Director 

Technical & Operations 

Director 

Legal Affairs 

Director 

Market & Competition 

Director 

Finance & Administration 

Director 

Consumer Affairs 

Manager 

Licensing & 

Operations Manager 

Technical 

Advisor 

Telecommunication 

Access & Infrastructure 

Manager 

ICT 

Manager 

Market & Competition 

Manager 

Chief Economist

4 


Chairman’s Statement 

04 

CHAIRMAN’S 

STATEMENT 

Welcome to the sixth 

annual report of TRA - the 

Telecommunications Regulatory 

Authority of the Kingdom 

of Bahrain. During 2008 

we began to put in place 

measures that will equip us 

to meet our objectives and 

face the challenges ahead as 

the telecommunications landscape changes rapidly on both a 

national and global scale.

Chairman’s Statement 


TRA can be proud of what it has achieved since the seeds of liberalisation were sown in 2002, and I would like 

to thank Dr. Mohammed bin Jassim Al Ghatam and the previous Board Members for their active participation in 

shaping the Kingdom’s telecommunications market. However, we still have more to do in realising our vision of 

Bahrain as the region’s most modern communications hub and in reaching our potential in comparison to the most 

advanced markets in the world. 

When the new Board met for the first time in June, I spoke on behalf of all the Members when I said that we were 

pleased and honoured to be entrusted with leading TRA in the coming four years. This will be a critical time as our 

competitive telecommunications market matures and delivers real benefits for users, for operators and for our 

economy in the Kingdom. 

The second National Telecommunications Plan published at the beginning of the year set out the Government’s 

high level objectives for the next three years. TRA must continue to remove barriers to competition, including those 

in building competing infrastructure. We must encourage inward investment and use scarce resources, such as 

spectrum and access to land, with maximum economic efficiency. We need to work with both residential and business 

customers in developing the regulatory framework, addressing their concerns and meeting their expectations. We 

will promote the use of broadband and internet services, and ensure that the regulatory framework keeps pace with 

converging and new technologies. 

The activities and progress outlined in this report reflect our commitment to meeting the Plan’s objectives. We are 

well on the way to implementing the measures resulting from the comprehensive study of the market carried out 

in 2007 – the Strategic and Retail Market Review – which fully support the Government’s aims. TRA is working with 

more partners than ever before to deliver greater benefits for customers and for our country. 

There is no doubt that, with the downturn in the global economy, 2009 will be a difficult year for attracting further 

investment into our communications market. However, I am certain that TRA will continue to make progress. When 

members of the Kingdom of Bahrain’s excellence programme, which aims to promote a culture of excellence in 

performance across the public and private sectors, visited in November they recognised that TRA always pursues 

high standards of performance and adopts international best practice. This approach equips TRA and its staff to 

tackle the future with confidence. 

Dr. Mohammed Ahmed Al Amer

6 


General Director’s Statement 

06 

GENERAL 

DIRECTOR’S 

STATEMENT 

The theme of our work at TRA 

this year has been putting in 

place the right measures to 

boost competition in a maturing 

market so we can realise the 

maximum benefits for both 

consumers and the economy 

over the years ahead. Following 

the comprehensive Strategic 

and Retail Market Review 

completed in 2008 and the publication of the Government’s 

National Telecommunications Plan in 2008, we have a clear 

roadmap for the future and we are in good shape to tackle the 

challenges that face us.



First I would like to take this opportunity of thanking the Chairman, Dr. Mohammed Ahmed Al Amer, and the Board for 

their support and active interest in the work of TRA. I know that they share my optimism for the telecommunications 

market in the Kingdom and its potential in the long term, despite the current global economic situation. 

The outcome of the Strategic and Retail Market Review - a major piece of work for TRA last year - resulted in nine 

measures to further enhance the competitive environment, encourage investment in alternative services and improve 

the user experience. These ranged from offering a third mobile licence and introducing number portability to 

enhancing data collection and issuing competition guidelines. Excellent progress was made on a number of these 

measures during 2008. 

Some of the measures, such as reforming and relaxing tariff regulation, call for a more mature relationship both 

between TRA and licensed operators, and between the operators themselves. We are drawing up competition 

guidelines that will pave the way for the transition to this more devolved approach. In particular, as the regulator, we 

need to be confident that Batelco and any other operator dominant in a market will act fairly to its wholesale as well 

as retail customers. They must abide by the spirit of any rules, not just the rules themselves. 

This is essential because other licensed operators need to purchase wholesale services and obtain access to customers 

on other networks in order to run their telecommunications business. As regulation becomes lighter touch, the 

behaviour of the dominant operator can greatly affect competition in the market, the consumer experience and 

the economy. In the early years of a competitive market the role of the regulator is, through prescriptive rules and 

appropriate intervention, to ensure that new entrants have fair access to the market and the dominant operator allows 

that access. As the market matures the role is more about facilitating the market forces, being the catalyst for progress 

and acting as the well-informed, demanding consumer. Our key task is to ensure that there is a sustainable supply of 

a wide range of innovative services - and effective competition is the driving force for this. Our benchmark for success 

is the experience of consumers here compared to the leading international markets for telecommunications. 

In 2008 we were able to work constructively with Batelco on a new combined Reference Access and Interconnection 

Offer, setting out the terms and conditions for wholesale services offered by Batelco to other licensed operators. This 

is the cornerstone for ensuring effective competition. The Offer included many reductions in the prices of wholesale 

services, in particular for leased lines and broadband services. Prices for national leased line circuits were reduced by 

35 per cent and for international circuits by 25 per cent. The new broadband charges are over 20 per cent lower in the 

residential market and 30 per cent lower in the business market. 

During our presidency of the Arab Regulators’ Network (AREGNET), which ended in June 2008, TRA - Bahrain, in 

cooperation with other regulatory authorities in the Arab region, commissioned a report benchmarking retail prices in 

the region against international standards. Users in Bahrain are certainly enjoying competitive prices in comparison 

to elsewhere in the region. On an international basis mobile rates compared well, but both leased line and broadband 

services were still high. A consequence in Bahrain is that the vast majority of the Kingdom’s broadband users subscribe 

to relatively low-speed services. This is of great concern because of the extraordinary development of innovative and 

exciting high-speed broadband services currently taking place around the world.

8 



The facilitation of competition, including reduction in wholesale prices of broadband services, should benefit 

consumers and help to increase the take-up of higher speed services. Customers in the Kingdom must not miss out 

because of unwarranted cost barriers, nor any other types of barrier. The National Telecommunications Plan sets 

out clearly our objective of increasing the use of internet and broadband services at internationally competitive 

prices. The lag in broadband access and cutting-edge keenly-priced services can also deter inward investment and our 

potential to attract new businesses to the Kingdom. 

As a general rule, incumbent operators need to act responsibly towards new entrants and internet service providers in 

order to ensure that a country offers diverse choices, high bandwidth and low cost international connectivity. These 

are major contributors to the country’s overall economic competitiveness. 

The new Numbering Plan, for example, has already opened up ranges of numbers for services that could be delivered 

by any technologies without the need to fit these services into traditional descriptions of ‘fixed’ or ‘mobile’ technologies. 

This will enable a progressive introduction of converged services. For instance, a mobile customer could move into 

an office or home location while making a call and seamlessly be transferred to the fixed line there at a lower tariff. 

Regulation should never stand in the way of innovation but act as a gateway enabling customers’ access to world-class 

services while ensuring the integrity of those services. 

Although the benchmarking project showed mobile prices within national boundaries were competitive, a particular 

concern for the Kingdom’s customers is what they are charged when travelling overseas - mobile roaming charges. 

I was pleased that at the final meeting of AREGNET while TRA - Bahrain held the Chair, we were able to agree a way 

forward and a recommendation on reducing these charges for travellers in the region. This recommendation was 

subsequently supported by the Arab League. TRA also introduced a requirement that operators inform customers 

about charges for using their mobile phone in other countries so they are aware of costs in advance. 

We currently have two well-established operators in the mobile market - Batelco and Zain. The outcome of the review 

suggested that the time was right to introduce a third mobile operator. Despite the worsening global economic 

climate there was a high level of interest throughout the process. We were looking for an operator that would 

bring a combination of international and local expertise. In the end only one bidder passed all the criteria - Saudi 

Telecommunications Company (STC). However, with operations in Saudi Arabia and six other countries and with over 

60 million subscribers who have access to the latest mobile technologies, STC was always a strong contender and we 

look forward to them coming to market rapidly. 

This is good news for consumers. In fact there was much focus on consumer issues, particularly generated by the two 

very active user advisory groups set up at the beginning of the year. These met almost monthly and provided a strong 

voice for residential and business customers in the Kingdom. They expressed consumers’ concerns both to TRA and 

direct to the operators. We have made significant progress on issues raised, such as number portability - enabling 

customers to keep their number when changing operator - and quality of service with operators now required to 

publish their figures. I would like to thank Sheikha Haya bint Rashed Al Khalifa, Chair of the Consumer Advisory 

Group, and Mr. Ahmed bin Hindi, Chair of the Business Users Advisory Group, and all the members for their keen 

interest in telecommunications, active participation and commitment throughout the year.



Resources such as spectrum and land use are scarce and need to be used carefully. The emphasis must be on 

enabling investment to be brought into the sector and on encouraging new and innovative services. This too was 

a topic during the year. Responsibility for giving operators fair access to public lands to deploy telecommunication 

infrastructure moved to TRA’s newly opened unit, the Telecommunications Technical Office. We took action on sharing 

telecommunications masts and other wireless infrastructure and also on migrating frequencies so that we could 

make more efficient use of the spectrum. AREGNET too held an interesting discussion on reducing the environmental 

impact of telecommunications, a strongly related subject. 

I have highlighted some of our work during the year - I hope you will read the Report to find out about the rest. But we 

could have achieved nothing without the dedication of our highly talented staff in TRA. I would like to thank them for 

their hard work and support during an interesting year for the Kingdom of Bahrain’s telecommunications regulator. 

We have always adopted standards of international best practice and I was delighted when at the end of the year a 

Government delegation recognised that we strive for excellence in everything we do. 

Alan Horne

10 


Highlights of 2008 

10 HIGHLIGHTS 

OF 2008 

January 

TRA sets up the new Consumer and Business User 

Advisory Groups 

February 

The Government of the Kingdom of Bahrain issues the 

second National Telecommunications Plan 

TRA proposes a package of measures to promote 

competition following the Strategic and Retail Market 

Review and issues a Draft Significant Market Power 

Determination 

Following reports of security attacks on networks, TRA 

reminds licensed operators to protect their customers 

The Consumer and Business User Advisory Groups meet 

licensed operators 

TRA publishes its first Telecommunications Services 

Indicators Report 

March 

TRA considers legal action against Batelco for 

advertising services not yet approved 

TRA issues draft guidelines on telecommunications 

infrastructure deployment 

TRA requires mobile operators to notify customers 

of roaming charges - mobile charges when they are 

travelling overseas 

TRA fines Batelco BD 100 thousand for not providing 

wholesale leased line services to 2Connect 

April 

The process of awarding a third mobile operator licence 

begins with TRA inviting expressions of interest and 

views from the telecoms industry 

The Arab Regulators’ Network (AREGNET) meets in 

Bahrain as TRA holds presidency. AREGNET agree 

recommendations on reducing international mobile 

roaming charges and discuss environmental issues and 

benchmarking 

The General Director of TRA speaks at the Middle East 

Network Operators Group (MENOG) meeting in Kuwait 

TRA hosts discussion between all key stakeholders to 

develop National Spectrum Planning and Allocation 

Policy 

The Consumer Advisory Group meets Batelco’s Chief 

Executive 

May 

Six companies express interest in the third mobile 

operator licence and TRA invites proposals for designing 

and managing the selection process 

Batelco fulfils its obligations in providing leased line 

services to 2Connect and other licensed operators 

TRA consults on quality of service draft regulation 

The General Director of TRA addresses the Strategic 

Telecommunications Summit in Abu Dhabi 

June 

TRA issues its Final Statement on the Strategic and 

Retail Market Review and its Final Determination of 

Significant Market Power 

TRA publishes an independent price benchmarking 

study of telecommunications services in Arab countries 

TRA hands over the presidency of AREGNET to Tunisia 

TRA invites proposals to develop competition guidelines 

and tariff notification guidelines 

TRA holds a workshop on the policies related to the 

deployment of telecommunications networks in new 

property developments and publishes a study on the 

issue 

New TRA Board meets for the first time 

TRA consults on a revised National Numbering Plan 

TRA appoints consultants to work on the number 

portability project 

TRA meets licensees to discuss Batelco’s wholesale 

service offerings

Highlights of 2008 


July 

New combined Reference Access and Interconnection 

Offer comes into effect, setting out reductions in the 

wholesale services offer by Batelco to other licensed 

operators 

TRA appoints consultancy firm to assist with awarding 

the third mobile network operator 

August 

TRA publishes a draft regulation to encourage sharing 

of telecommunications masts and other wireless 

infrastructure 

TRA makes first move to ‘unbundle’ Batelco’s local loop 

TRA consults on the migration of telecommunications 

frequencies 

September 

TRA’s General Director receives the Ambassador of 

Germany 

Revised National Numbering Plan is published 

TRA requires licensed operators to report on their 

quality of service 

TRA announces auction for third mobile licence 

To improve consumer safety, TRA requires mobile 

operators to register details of existing and new 

subscribers to prepaid mobile services 

The International Telecommunications Society decides 

that in 2009 its 20th European Conference will be 

organised in cooperation with TRA in Bahrain as the 

first European–Middle East–North African regional 

conference of the Society 

November 

TRA publishes draft Competition Guidelines 

Chairman and General Director of TRA meet and 

exchange views with Hong Kong’s regulator 

TRA considered a model for excellence in the Kingdom 

of Bahrain 

TRA issues a Draft Statement on the regulation 

of mobile termination and Draft Dominance 

Determination which declare Batelco and Zain 

dominant in mobile termination markets 

Licensed operators join TRA for end-of-year review 

TRA Board approves new tariffs of TRA, which include 

up to 20 per cent reductions in licence fees paid 

by telecommunications operators and provisions 

to encourage efficient use of telecommunications 

resources, e.g. spectrum and telephone numbers 

December 

TRA, as a coordinator of the Arab Regulators’ Working 

Group on Roaming, in cooperation with the GSM 

Association organises a workshop on the transparency 

of roaming prices for operators and regulators from the 

Arab region 

October 

The Businesses Users Advisory Group proposes setting 

up a telecommunications business users association for 

Bahrain and hosts a seminar to explore options 

TRA publishes draft regulation on number portability 

Four companies register for third mobile licence 

auction 

TRA invites tenders to auction for one licence using 

GSM 1800 Guard Band frequencies for advanced 

telecommunications services 

Consultancy firm appointed for implementation of 

Local Loop Unbundling (LLU) 

Second Telecommunications Services Indicators Report 

is published by TRA

12 


Working for Consumers 

12 

WORKING FOR 

CONSUMERS 

Telecommunications users have found a powerful 

voice to make their concerns heard in the two new 

Advisory Groups for residential and for business 

users. Working with TRA they have helped push 

forward number portability, the publication of 

quality of service measures and information about 

roaming charges. These are some of the issues that 

TRA has progressed in a year when the concerns of 

consumers were a high priority. 

Seminar on the Foundation of Bahrain Communications Users Associations



The new advisory bodies 

In January TRA set up two new bodies to represent the interests of the individual consumer and the business user 

of telecommunications. The Groups were established for a period of one year and began with a work plan for their 

period of office. Both Groups are independent of TRA and make recommendations to the regulator. Through these 

Groups business and residential users can contribute their views and experiences in order to help improve services 

and shape the future market. 

Both Groups met regularly throughout the year and took a very active role, submitting proposals and voicing the 

interests of business and residential telecommunications users. 

On 21 February TRA brought together the two new Advisory Groups with telecommunications operators Batelco, 

Mena Telecom and Zain. The aims were to: 

establish an open dialogue between the operators and the Groups 

ensure that the members of the Groups understood the services offered by the operators as well as the current 

state of the market 

enable the operators to understand and respond to the concerns of the two Groups. 

The February meeting was the first of a series. 

Each operator gave a presentation during which they answered specific questions that had been raised by the 

two Advisory Groups. The questions covered issues such as consumer protection, tariff transparency, complaints 

handling, number portability, developing solutions for businesses and meeting consumer needs. 

Issues highlighted as being of particular concern to consumers were access to services for people with disabilities, 

the high price of broadband services compared to other countries, disconnection procedures for the late payment of 

bills, the availability of mobile coverage and compensation for disruption of internet services. 

This last point arose because customers had been experiencing a number of disruptions to service in the Gulf region, 

thought to be due to damaged undersea optical fibre cabling. On 11 February TRA had encouraged Batelco to 

compensate both wholesale and retail customers fairly for such disruptions and also to review plans for minimising 

the disruptions. 

The Consumer Advisory Group 

This Group was chaired by Sheikha Haya bint Rashed Al Khalifa who is well known in the Kingdom for her public service 

work. The membership of the Group included representatives of consumers with particular telecommunications 

needs such as disabled people, low-income households and elderly people. 

The Advisory Group met monthly during the year and commented on the outcomes of the Strategic Review. They 

welcomed the proposed measures particularly warmly, especially the introduction of a third mobile operator and 

number portability (see Building a Competitive Market). 

Sheikha Haya bint Rashed Al Khalifa speaking in one of the Consumer Advisory Group meeting

14 



Batelco’s Chief Executive, Mr. Peter Kaliaropoulos, attended the April meeting. Members were able to discuss with 

him directly issues of concern to consumers, including electronic billing, subsidised and special packages for low 

income and special needs users, the speed of internet services and the cost of prepaid call services. 

At their meeting in July the Group discussed the Telecommunications Consumers Protection Guidelines which TRA 

proposed implementing in the Kingdom, the issue of signal levels from mobile base stations, and the draft regulation 

on quality of service (see below). 

The Business Users Advisory Group 

Mr. Ahmed bin Hindi had been an active member of the predecessor business body in 2007 and was appointed to 

chair this new Advisory Group. The Group provides input reflecting the views of business users ranging from small 

companies to multinational organisations, and from industrial to service sectors. 

During the year the members also met regularly and discussed issues including quality of service, the outcomes of 

the Strategic and Retail Market Review and how they might raise awareness of their work. They also requested that 

TRA remind service providers to notify consumers of any change to their service tariff well in advance and suggested 

that TRA monitor this. 

Association for Telecommunications Business Users 

At their July meeting the Business Users Advisory Group put forward the idea of forming an independent association 

of business users of telecommunications services. This is a model used successfully in the United Kingdom 

through organisations such as the Communications Management Association (CMA) which plays an effective role in 

representing its members’ interests in the communications sector. The Group invited Mr. David Harrington, Leader 

of the Regulatory Affairs Forum of the CMA, to advise on the foundation of a similar association in the Kingdom of 

Bahrain. 

On 13 October the Business Users Advisory Group and TRA hosted a seminar for business leaders across all sectors 

on the benefits of modern communications and the advantages an association would bring to businesses in the 

Kingdom. Mr. Harrington gave a presentation on CMA’s experience. 

Network security 

At the beginning of the year TRA became aware of reports that there had been attempts to interrupt specific services 

on telecommunications networks in the Kingdom. On 13 February TRA reminded operators of their obligations 

to ensure the protection of customers. Any such incidents should be reported to the security authorities of the 

Kingdom of Bahrain. 

International roaming tariffs 

Mobile phone customers travelling outside the Kingdom of Bahrain had been concerned because they did not know 

in advance how much they would be charged for calls and text messages (SMS) overseas - known as international 

roaming tariffs. At the end of March TRA began a consultation on a proposal to require mobile operators in the 

Kingdom to notify their customers by SMS of these tariffs in the country they are visiting. The same service via 

spoken message would be available for blind or partially-sighted customers on request. 

With this information, customers could then choose their foreign operator or decide whether buying a local SIM card 

at their destination would be a better option. The services covered would be the cost of calling or sending an SMS 

to the Kingdom of Bahrain and the cost of receiving a call or SMS when abroad. In addition, information about the 

mobile operator’s helpline and website would be supplied. 

This proposal was in line with the recommendations of the Arab Council of Ministers for Telecommunications and 

Information. The meeting of AREGNET in April also discussed international roaming charges (see Forging Links). 

Retail tariffs 

Until 2008 there was no comprehensive price comparison of main retail prices for Arab countries. TRA - Bahrain 

commissioned a benchmarking study to fill this gap from independent consulting firm Teligen. The study compared 

baskets of services for both business and residential customers with different usage profiles - low, medium and 

high - and benchmarked these against results for countries of the Organisation for Economic Cooperation and 

Development (OECD).



For the region as a whole, fixed telephony services, leased line tariffs, and especially broadband rates were high 

compared to OECD countries. However mobile tariffs compared well by international standards, with prices for low 

and medium usage being particularly economical. 

For the Kingdom of Bahrain specifically, mobile rates compare well, even with other countries in the region. Fixed 

voice tariffs also compare very favourably (however, Batelco’s current tariff structure is out of line with underlying 

costs). By international standards, rates for both leased line and broadband services are high, especially for higherspeed 

broadband services. This has implications for Bahrain’s ability to be competitive in the knowledge economy. 

Measures resulting from the Strategic and Retail Market Review (see Building a Competitive Market) address some 

of these issues. 

Table 1: Shows the number of Tariff Proposals submitted by Batelco 

No. of Tariff Proposal requests 

Type of services submitted by Batelco* Approved Rejected Withdrawn 

International calls 8 3 2 3 

National fixed 2 2 0 0 

Fixed and mobile 2 2 0 0 

Fax 1 1 0 0 

Paging 2 2 0 0 

Internet 17 14 2 1 

Mobile 12 10 0 2 

Total 44 34 4 6 

*In addition TRA has received about 30 temporary mobile promotions 

Quality of services 

An issue of great importance to telecommunications users is the quality of service they receive. In May TRA issued a 

draft regulation for consultation which would require licensed operators to measure and report on quality for fixed, 

mobile, internet and directory enquiry (DQ) services. Indicators included the number and type of complaints, the 

time taken to resolve them and how quickly DQ and fault-reporting calls were answered. This information enables 

consumers to compare performance between operators and will help TRA to set targets where needed. 

Following the consultation TRA issued a regulation in September making the publication of the performance 

measures mandatory. The two Advisory Groups welcomed the move. 

Registration of prepaid mobile subscriber details 

In a move to support public safety and deter attempts to misuse telecommunications networks, TRA required mobile 

operators to register details of existing and new subscribers to prepaid mobile services. In the case of new subscribers, 

the operators needed to register verifiable subscriber data before activating a prepaid mobile SIM card. 

The decision was issued for consultation in July. Operators were required to submit their proposed plans and 

processes to fulfil this obligation by 1 August and to start registering subscribers on 1 September. 

TRA encouraged consumers to take an active part so that the mobile operators would hold details of all subscribers 

by early 2009. 

Towards the end of the year it became clear that there was a significant number of unregistered subscribers. As a 

result TRA decided to extend the registration period till 31 March 2009, allowing more time for operators to complete 

the registration process. 

Consumer complaints 

During the year, TRA received a total of 22 complaints from consumers. These related to matters they were not able 

to resolve with their service providers. This compares with 17 in 2007. TRA was able to resolve most of these cases 

within the year.

16 TRA Annual Report 2008 Building a Competitive Market 

16 

BUILDING A 

COMPETITIVE 

MARKET 

As competition continued to grow, the new National 

Telecommunications Plan set the high level 

objectives for telecommunications in the Kingdom 

over the next three years, while the outcomes 

from the Strategic and Retail Market Review set 

the milestones for the year. The prospect of a third 

mobile operator gave a boost to competition in the 

mobile market. 

TRA faced a challenge in adapting the regulatory 

environment to support the development of 

innovative services that use emerging and converging 

technologies. These services bring considerable 

benefits for both consumers and the market. There 

was also progress in removing some long-standing 

barriers to effective competition, such as the lack of 

number portability. Working with the industry TRA 

developed a better way ahead on other issues, such 

as building telecommunications infrastructure.

Building a Competitive Market 


The second National Telecommunications Plan 

When the Kingdom of Bahrain began liberalising its telecommunications in 2003 the process was guided by the 

first National Telecommunications Plan. This set out the Government’s high level objectives of implementing 

liberalisation, establishing the licensing regime, the requirement for universal service and the role of TRA. 

Since then there has been considerable progress in liberalisation and developing a competitive market. In February 

2008 the Government published the second National Telecommunications Plan making clear its policy objectives 

for the next period. In particular, the Plan emphasised the developing role of telecommunications as a major force 

in the Kingdom’s economy. 

The Plan reinforced the role of TRA as an independent regulator and required TRA, along with other authorities 

where necessary, to: 

Involve the user, both residential and business, in developing regulatory policy and address users’ concerns 

Continue to develop a competitive market in both infrastructure and services by reducing barriers to entry and 

using scarce resources, such as spectrum and access to land, efficiently 

Promote private sector investment in the market 

Increase the use of internet and broadband technologies, at internationally competitive prices 

Modify the regulatory regime to support emerging national and international developments. 

Towards the end of February HE Sheikh Ahmed bin Attiyatallh Al Khalifa, Minister of Cabinet Affairs and Minister 

responsible for the telecommunications sector, met with TRA’s Chairman Dr. Mohammed bin Jassim Al Ghatam, General 

Director Mr. Alan Horne and the management team at TRA’s office. The meeting focused on TRA’s plan of action for 

delivering the Government’s policy and aims as outlined in the second National Telecommunications Plan. 

Strategic and Retail Market Review 

In 2007 TRA commenced a major review of many different aspects of telecommunications in the Kingdom of Bahrain 

in order to inform and develop its plans for the future. As a result of this review, TRA announced in February 2008 a 

HE Sheikh Ahmed bin Attiyatallh Al Khalifa meets TRA on the second National Telecommunications Plan


package of nine regulatory measures it intended to implement that would further promote competition and deliver 

significant benefits to consumers. Comments were invited and the final proposals were published on 3 June. 

Eight of these measures were put in place, or the implementation process was started, during 2008. These were: 

A third mobile operator licence 

Removal of certain tariff approval processes 

Data collection, including consumer surveys and price benchmarking 

Local Loop Unbundling 

Carrier selection and improved Carrier Pre-Selection (CPS) 

Competition guidelines 

Number portability (fixed and mobile) 

Reform of retail tariff regulation 

The final one - the removal of mobility restrictions for National Fixed Wireless Services (NFWS) licences – is scheduled 

for 2010. 

At the same time as the final proposals were published in June, TRA issued its final determination detailing the retail 

markets in which Batelco was deemed to have significant market power. These included fixed line and leased line 

services. 

Third mobile licence 

Two operators, Batelco and Zain, currently compete in the Kingdom’s mobile market. The introduction of a third 

operator would stimulate not only price competition and better value for money but also the drive for innovative 

mobile services. There are clear benefits to users but also to operators, because their improved range of services will 

help them compete more effectively in other international markets. 

In early April TRA invited expressions of interest as well as opinions on issues such as preferred spectrum range and 

bandwidth, infrastructure sharing, national roaming and an exclusivity period. Six companies had expressed an 

interest in the licence by the closing date in May. 

In July, following a tender which attracted 15 high quality proposals, TRA appointed Telecommunications Management 

Group (TMG) Inc of Arlington, Virginia, USA, to design and manage a competitive process for the award of the third 

mobile network operator licence. 

Through the auction process TRA was looking for an operator with experience of managing a significant size of 

customer base, and one that would bring established agreements with content providers and mobile partners. 

Speed to market in the Kingdom was a priority for TRA. The third operator was also expected to share infrastructure, 

e.g. masts, with existing operators. 

In September the Board of Directors of TRA approved the recommended competitive award process - by auction - 

and the final tender documents. The process comprised a multi-stage qualification procedure and a final financial 

round for suitably qualified bidders. Transparency was a key feature throughout the process. By the deadline four 

companies had registered as prospective bidders in the auction. 

On 12 January 2009 TRA announced that it had received only one bid, from Saudi Telecommunications Company 

(STC). The bid had passed the initial administrative checks but the dedicated team at TRA then evaluated the technical 

and commercial aspects of the bid against the qualification criteria. On 22 January 2009 TRA announced that STC 

was the successful bidder with a bid of BD 86.687 million. STC operates in Saudi Arabia and six other countries. The 

company has over 60 million subscribers who have access to the latest mobile technologies. 

As part of their bid STC are committed to constructing, in the near future, a robust high-quality advanced mobile 

network offering quality services. The bid also contained a corporate social responsibility obligation under which 

1 per cent of revenue will be used, among other projects, to develop e-health, e-learning and sports facilities within 

the Kingdom. STC has also undertaken to establish a venture capital fund which will focus on the development 

of ICT.



TRA Awards the third mobile licence to Saudi Telecommunications Company (STC) 

Local Loop Unbundling 

This measure from the review was designed to give Batelco’s competitors access to services in the final part of Batelco’s 

fixed network - between local exchanges and the customer’s premises. This would enable competitors to provide a 

range of high speed broadband retail services to customers. The wholesale local loop services would be available to 

competing licensed operators as part of the existing package of services in Batelco’s Reference Offer (see below). 

In August TRA invited consultancy firms to submit proposals for achieving Local Loop Unbundling (LLU). On 3 November 

TRA announced that it had appointed TERA Consultants to work closely with TRA and the telecommunications 

industry in developing the approach to LLU, enabling competitive services in the local loop. This work was continuing 

at the end of the year. 

Competition guidelines 

The development of competition guidelines supported the move towards a more competitive environment, enabling 

regulation to better reflect market conditions and underpinning an open competitive market working on fair terms 

for both suppliers and consumers. 

The removal of tariff approval requirements for mobile and some international services and the entry of a third 

mobile network were expected to boost competition in the market. However, this was likely to bring an increase in 

the number of complaints about anticompetitive behaviour. The competition guidelines aimed to give clarity on 

what practices might be deemed anticompetitive and how TRA would deal with allegations of such practices. 

TRA published draft competition guidelines for public consultation on 5 November. These refreshed TRA’s approach to 

defining the market and assessing competition. In addition to giving guidance on anticompetitive practices, the draft 

also included a detailed template for lodging complaints. This consultation was ongoing at the end of the year. 

Number portability 

As surveys in 2007 revealed, many consumers were deterred from choosing to move to another operator by not being 

able to take their number with them. In the survey, for example, 93 per cent of business users said that keeping their 

number was important and over one third said this was the main reason why they would not change. 

As a first step towards removing this barrier, in March TRA announced a tender to appoint a consultant to identify the 

best and most cost-effective methodology for implementing number portability. Interested parties were invited to 

submit their bids by the end of March. TRA completed its evaluation of the bids in April and in June the consortium 

Mott MacDonald and Horrocks Technology began work on the project. 

Meanwhile TRA set up an industry working group on the implementation of number portability to ensure that local 

operators were fully engaged in the process. This met for the first time on 26 May.


On 19 October TRA issued a consultation document proposing that, through the establishment of a central database, 

all licensed operators would be required to allow customers to transfer their numbers to other operators. Number 

portability would be available to both mobile and fixed line customers. No operator would be allowed to engage in 

any direct activity to dissuade a customer from moving. 

There were two main aims of these proposals. First consumers would be empowered to exercise free choice to select 

any operator for their fixed or mobile service. And second it would encourage operators to improve their services in 

order to keep their customers. 

National Numbering Plan 

The way numbers are used and allocated to operators can either support or be a barrier to innovative and competitive 

telecommunications services. The National Numbering Plan therefore needs to keep pace with technological change, 

the evolution of new services and increasing competition. 

In June TRA issued a revised Plan for public comment. Following this consultation and a series of workshops with 

the industry, the updated National Numbering Plan was released and from 18 September TRA began accepting 

applications for new number ranges. 

Among other changes, the Plan opened up new number ranges in a technologically neutral manner for operators 

offering services over fixed and mobile networks, and for services using technologies such as Voice over Internet 

Protocols (VoIP). The new number ranges, in effect, are for use by operators offering any service over any technology. 

The Plan was designed to be forward looking, to accommodate not only existing, but also future technologies, and 

to provide a migration path to the fully converged telecommunications environment that lies ahead. 

TRA also ensured that numbers continued to give consumers an indication, by looking at the first two digits, of 

the level of charge they are likely to incur - for example freephone, national call rates or premium charges for 

information type services. 

Emergency service short codes were also extended to support new Government initiatives on routing emergency 

calls direct to specialist agencies such as the Coastguard. The revised Plan also introduced a new series of short 

codes, at varying rates, for calls to information services, taxi companies, restaurants and similar operations. 

Spectrum issues 

National Spectrum Planning and Allocation Policy 

In April TRA brought together organisations concerned with the planning and allocation of radio frequency 

spectrum in the Kingdom. Representatives attended from the Ministry of the Interior, the Bahrain Defence Force, 

Civil Aviation Affairs, Bahrain TV Corporation and the General Organisation of Seaports. The aim was to extend the 

National Spectrum Planning and Allocation Policy beyond telecommunications spectrum usage only and so ensure 

the efficient use of radio frequency, with reduced risk of interference between user groups including from nearby 

countries. TRA had recognised the need to balance the requirements of the different user groups in the policy and 

to support the development of security, social, economic and safety activities in the Kingdom. 

Earlier in the year consultants InterConnect Communication (ICC) had been appointed to develop the policy and, 

at the meeting in April, they presented an assessment of the current situation and their recommendations for the 

future. 

In October, the Minister responsible for the telecommunications sector issued a resolution to establish a permanent 

Spectrum Strategy and Coordination Committee (SSCC). The committee aims to facilitate the coordination of 

spectrum requirements and to support the development and maintenance of the National Frequency Plan for all 

radio spectrum resources in the Kingdom. 

SSCC is chaired by Sheikh Salman bin Mohammed Al Khalifa, Director General of Information Technology at the 

Central Informatics Organisation. The other nine members represent the different sectors that are major users of 

spectrum:



TRA hosts a meeting with all user groups of Radio Spectrum 

TRA (represented by Mr. Mohammed Tayeb Mahmood) 

Directorate of Wireless Licensing, Frequency and Monitoring 

National Security Agency 

Bahrain Defence Force 

Ministry of the Interior 

National Guard 

General Organisation of Seaports 

Civil Aviation Affairs 

Radio and Television Corporation 

Frequency migration 

There are times when TRA needs to move or migrate licence holders from or within the frequency band they have 

been allocated in order to use the spectrum more efficiently. This is permitted under the generic telecommunications 

frequency licence or its equivalent. TRA consulted on a Frequency Migration Regulation in August setting out the 

principles and clarifying how the process works in practice. 

Interconnection - the wholesale offer 

Reference Access and Interconnection Offer 

From 1 July a new combined Reference Access and Interconnection Offer came into effect. The Reference Offer sets 

out the basic wholesale offer by Batelco to other licensed operators in the Kingdom. It enables the other operators 

to provide services to end users on Batelco’s network as well as allowing their own 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. 

The approved charges in the new Offer included many price reductions. This should stimulate other operators 

to take up more wholesale services and pass on cost savings to their customers. The largest reductions came in 

broadband services and leased lines. 

The new broadband charges are over 20 per cent lower in the residential market and 30 per cent lower in the 

business market. This should strengthen competition and increase the take-up of higher speed services. The charges 

paid by other licensed operators for national leased line circuits were reduced by 35 per cent, and by 25 per cent for 

international leased line circuits.


The call termination rates - the fee Batelco charges to other operators for delivering calls from their networks to 

Batelco customers - were reduced by 5 per cent over fixed networks and 14 per cent over mobile networks. 

Before the new Offer came into effect, TRA invited all licensed operators to a meeting in order to discuss the Offer 

and its newly approved charges. 

Dominance in mobile termination services 

A significant part of the final cost a customer pays for a call derives from the wholesale tariff that one operator 

charges another for delivering the call to a customer on its network - the termination service. On mobile networks 

this covers voice calls, Short Messaging Services (SMS) and Multimedia Messaging Services (MMS). On 26 November 

TRA issued a draft regulation declaring both Batelco and Zain dominant in the mobile termination market. The 

effect of this is that both Zain and Batelco’s termination rates would be regulated. 

While Batelco’s termination rates had been regulated since 2003 and have decreased, Zain’s have not been regulated 

and are subject only to commercial agreements. With the expected entry into the market of a third operator and 

Zain gaining considerable market share, TRA considered that the two established operators should now be treated 

similarly. The move would provide added certainty for existing licensed operators as well as for the third mobile 

operator. The consultation was ongoing at the end of the year. 

Telecommunications infrastructure 

One of the key requirements for fair and sustainable competition in the telecommunications market is effective 

access to public and private properties in order to deploy telecommunications infrastructure. Since the liberalisation 

of fixed line services in 2004, new market entrants had faced obstacles in installing alternative cable networks on 

the ground. 

New properties 

In January TRA began a project to identify and develop an appropriate regulatory policy for deploying networks 

in new property developments. These could be buildings, compounds or industrial parks – for example in the 

Islands. TRA’s objectives were to analyse the problems that operators had encountered and to look for models for 

delivering state-of-the-art telecommunications infrastructure and services to the people who live and work in these 

developments while at the same time safeguarding consumer choice. 

More than 60 people, comprising property developers, investors and telecommunications operators, attended a 

meeting held by TRA on this issue in June. The purpose was to present views on the appropriate and effective 

regulatory approach that would achieve TRA’s aims and facilitate investment. 

TRA hosts a meeting on telecommunications infrastructure in new properties developments



At the meeting Juconomy Consulting, appointed by TRA to review this issue, presented their findings. TRA then 

suggested that developers take a more active role and invest in infrastructure. TRA undertook to develop a policy 

that would support developers and operators in providing services to customers that meet international best 

practice. Resolution of this issue will contribute to TRA’s vision of the Kingdom becoming the region’s most modern 

communications hub. 

All public and private property 

In March, TRA published, for consultation, draft guidelines for the design, deployment, operation and protection of 

telecommunications network infrastructure on public and private property. The second National Telecommunications 

Plan supported measures to remove barriers to infrastructure deployment so that all operators with appropriate 

licences could install their own physical network. 

Telecommunications Technical Office 

During the year TRA set up a Telecommunications Technical Office (TTO) to work, on behalf of the telecommunications 

sector, with the Central Planning Unit of the Ministry of Works on infrastructure issues. The TTO has responsibility for 

a range of processes, from obtaining permits and providing information about an area to advising on the guidelines 

and dealing with emergency cases. 

Sharing masts and other wireless facilities 

Sharing telecommunications masts and associated wireless network facilities results in more efficient investment 

in wireless infrastructure, reduced operational costs which can then be passed on to customers, and a sounder 

environmental approach. TRA published a draft regulation in August to oblige any licensee that owns, leases or 

manages wireless telecommunications network facilities to negotiate and enter into a sharing agreement with any 

other licensed operator requesting this. 

Enforcement actions 

Advertising an unapproved service 

In early March, Batelco advertised a new ‘Broadband Plus’ service as “coming soon, subject to TRA approval” at a 

time when TRA was in the process of considering Batelco’s proposal and its compliance with the Telecommunications 

Law. This was misleading to potential customers and TRA asked Batelco to withdraw all adverts or it would consider 

taking legal action against Batelco. 

Under the terms of its licences Batelco is required to submit all tariffs for approval prior to launch. Batelco’s action 

was against the spirit of the procedure and, while TRA encourages innovative services, it must also protect the 

interests of consumers as well as the competitive environment. Both were concerns in this case. 

Batelco first submitted its proposal for this package to TRA in December 2007 but failed to provide sufficient 

information to answer questions over the potential anti-competitive nature of the proposal. The operator resubmitted 

its tariff at the very end of February. TRA then had 30 days to assess the tariff and it was during this 

period that Batelco began advertising. 

With the proposal to remove certain tariff approval requirements in future, this was a cause for concern. 

Dealing with wholesale customers 

TRA took action against Batelco at the end of March for not providing wholesale leased line services to 2Connect 

which holds licences for fixed, value added, internet and international services in the Kingdom. Batelco had breached 

the terms of its Reference Offer of services to other licensed operators. 

TRA issued an order and fined Batelco BD 100 thousand - a sum reduced from the BD 500 thousand originally 

proposed because Batelco undertook to fulfil its obligations in a relatively short time frame. Batelco paid the fine 

and supplied the leased lines to 2Connect as well as supplying leased lines requested by other licensed operators.


Licensing 

New Value Added Services licence 

Under the Telecommunications Law Value Added Services (VAS) licensees could not obtain telephone numbers or 

codes directly from TRA. In March TRA began consulting on whether to issue a new licence to allow this before it 

addressed the issue through the unified licence expected towards the end of the year. The new licence would enable 

VAS licensees to obtain specific numbers linked to their value added services and so promote further competition in 

the market for these services. 

Having considered responses to the consultation, TRA decided in early July that it would not go ahead with this 

individual VAS licence. TRA considered that the move might add too much unnecessary complexity to the licensing 

regime for a short term gain because TRA intended to go ahead with the unified licensing regime in the near future. 

The disadvantages outweighed the benefits of the move. 

GSM 1800 guard band frequency licence 

In October TRA invited tenders for the auction of one frequency licence in the GSM 1800 guard band. These 

frequencies can be used for important niche services needing wireless connection, such as home delivery services, 

telemetry for fleets of vehicles, public utilities and wireless security. These types of applications can use innovative 

internet protocol (IP) based technologies. 

Neither of the two bids received in December complied with the tender requirements and TRA relaunched the 

auction in February 2009. 

New licences and revocations 

A total of 15 new licences were issued during 2008. The full list of licensees is given in Annex A. TRA also maintains 

a register of information as specified in section 52a of the Telecommunications Law. 

Following a due period of notice Swiftel International Company WLL’s International Services Licence (ISL) and Value 

Added Services licence (VAS) were revoked voluntarily with effect from 5 June. 

Licence fees 

TRA’s Board of Directors approved a revised schedule of fees for 2009 at the end of November. These are fees paid to 

TRA by licensed operators and users of spectrum. The new fees have been set to help smaller telecommunications 

operators during the prevailing difficult economic period. They also encourage larger operators to use 

telecommunications resources efficiently, in particular the significant bandwidth of spectrum and the blocks of 

telephone numbers that have been allocated to them. 

Mergers and acquisitions 

TRA reviewed and decided not to oppose two transactions under the mergers and acquisitions procedures: 

Bahrain Broadband Company WLL redistributed shares amongst existing shareholders and Kleos Offshore sal 

A change of ownership of Etisalcom Bahrain WLL.



Market Indicators and Statistics 

Table 2: Large number of market players and services offered in the Kingdom 

Other 

National International Leased data 

Operator Name Fixed Calls Mobile Internet line services 

2Connect 

Batelco 

BT Solutions Ltd 

Business Communication 

Networks 

Etisalcom 

Fakhro IT Services 

Fastelco ( TeleGulf) 

Kalaam Telecom 

Light Speed 

Mena Telecom 

Northstar 

Nuetel Communications 

Orbit 

Viacloud 

Zain (Bahrain) 

Total 8 14 2 11 6 5

26 TRA Annual Report 2008 Building a Competitive Market


TRA Annual Report 2008 27

28 


Forging Links 

28 

FORGING 

LINKS 

There is a growing number of groups being formed 

across the Arab region which bring together the 

region’s telecommunications interests and help boost 

its competitiveness on the world stage. TRA plays a 

full part in these. At home TRA has been working 

with other sectors and continues to host events with 

telecommunications operators and other groups 

interested in its activities. 

TRA handovers the Presidency of AREGNET to Tunisia

Forging Links 


AREGENET meets with the regional mobile operators on mobile roaming charges 

International 

AREGNET 

TRA - Bahrain continued to hold the Presidency of the Arab Regulators’ Network (AREGNET) until handing over to 

Tunisia in June. 

On 8 and 9 April the Kingdom hosted a meeting of AREGNET and high-level representatives of the telecommunications 

regulators in 15 Arab countries attended. The aim of these meetings is to share experiences and discuss the alignment 

of regulatory policies. 

On the first day AREGNET members met high-level representatives from 13 mobile operators in the Arab region 

together with the GSM Association. Discussion focussed on the regulation of international mobile roaming charges, 

an issue of great concern to the Kingdom’s overseas travellers. 

At the plenary session following this, the members decided that self-regulation by the operators would not be sufficient 

to tackle effectively the high tariffs paid by mobile customers when travelling in the region. They agreed to put 

forward a recommendation on the regulation of international mobile roaming tariffs for consideration at the Council 

of Arab Ministers of Telecommunications and Information Technology at their June meeting. The plenary session also 

included discussions on the unified licensing regime, consumer protection and benchmarking market data. 

The following day there was a workshop on the role of telecommunications services in protecting and improving 

the environment. At this session the Assembly was addressed by two eminent experts, Eng. Fareed Bushehri, from 

the United Nations Environmental Programme (UNEP) based in Bahrain, and Dr. Hossam Allam, Head of ICT for 

Development within the Centre for Environment and Development for the Arab Region and Europe (CEDARE). 

Later in the year, in its capacity as AREGNET Chair, TRA - Bahrain published a report benchmarking retail prices in the 

region against international standards (see Working for Consumers). 

Other activities 

On 17 April, TRA - Bahrain General Director Alan Horne gave the keynote speech at the Middle East Network 

Operators Group (MENOG) meeting held in Kuwait. He was speaking in his capacity as President of AREGNET and

30 


Forging Links 

talked about international services ranging from leased lines to high-speed internet connections. He also discussed 

how incumbent operators can hold back development, and how the role of the regulator can be seen as a catalyst 

in stimulating innovative services and economic growth. 

In June the General Director addressed the Strategic Telecoms Summit in Abu Dhabi. An audience of over 100 

delegates from telecommunications operators and industries, as well as representatives of the financial sector, heard 

about the challenges for the regulator arising from converging technologies, the future regulatory landscape and the 

realisation of real benefits for consumers. 

His Excellency Dr. Hubert Lang, the Ambassador of the Federal Republic of Germany, visited TRA in September. His 

meeting with TRA’s General Director focused on attracting inward investment to the Kingdom and making the most 

of investment opportunities in both countries. 

In September 2008 TRA finalised the agreement with the International Telecommunications Society (ITS) to host 

its 20th European Conference in Bahrain as the first European-Middle East-North African regional conference of 

the Society. This event will continue the long-standing series of ITS European Regional Conferences, which started 

in 1987. The conference will be held in October 2009. TRA will partner with the ITS, the University of Strathclyde 

(UK) and the University of Bahrain in organising this Conference. The ITS is an association of professionals in the 

information technology and communications sectors. 

In October TRA Director of Technical and Operations Mr. Mohammed Tayeb Mahmood represented the Kingdom 

of Bahrain at the Global Standards Symposium and the World Telecommunications Standardisation Assembly 2008 

held by the International Telecommunication Union (ITU) in Johannesburg, South Africa. 

In early November, TRA’s Chairman, Dr. Mohammed Ahmed Al Amer, and General Director, Mr. Alan Horne, met 

the Director General of Hong Kong’s telecommunications regulatory authority (OFTA), Mrs. Marion Lai Chan Chi- 

Kuen, at the International Institute of Communications (IIC) annual conference. Hong Kong has a very competitive 

telecommunications environment with well-developed high speed fixed and mobile services. At the end of the year 

talks were underway for TRA Bahrain to host the IIC’s Telecommunications and Media Forum in 2009, which will 

focus on regulating convergent technologies. 

In December 2008 TRA, as coordinator of the Arab Regulators’ Working Group on Roaming, in cooperation with 

the GSM Association, organised a workshop on the transparency of roaming prices. This workshop was attended by 

operators and regulators from the Arab region. 

Local 

TRA continued to work closely with telecommunications operators in the Kingdom as well as with other key 

stakeholders within the industry and in related sectors. In November TRA hosted an end-of-year review meeting 

with the operators. 

On 23 April the General Director discussed the issue of signal levels from mobile phones and mobile base stations 

with two students - Mariam Mansouri and Sara Al Rashed - from Muharraq Secondary Girls School, accompanied by 

teacher Mrs. Najah Hassan.

Forging Links 


TRA General Director meets with school students on signal levels from mobile base stations 

At the end of June TRA welcomed Ms. Johana Franz, a student of the British School in Bahrain, as a summer trainee. 

Ms. Franz gained valuable experience of the work environment and learnt about the telecommunications industry 

during her stay. 

During the summer TRA provided four months’ technical training for Mr. Ali Mirza Khalaf, a student from Glamorgan 

in the UK. Mr. Khalaf’s field training focused on spectrum management and licensing. 

Mr. Khalaf ending his technical training at TRA

32 


Inside TRA 

32 

INSIDE TRA 

This was a year of some change inside TRA but we 

continued to uphold high standards in developing 

staff and working together as a team. 

TRA members participate in Bahrain Marathon Relay

Inside TRA 


The new Board 

TRA’s newly appointed Board held its first meeting on 22 June. The Chairman Dr. Mohammed Ahmed Al Amer and 

Members thanked the previous Board for steering TRA through the first four years of liberalisation and taking an 

active role in helping TRA to shape the Kingdom’s emerging competitive market. 

TRA a model for excellence 

On 17 November HE Mr. Mohammed Bin Ebrahim Al Mutawa, Advisor for Cultural Affairs to HH the Prime Minister, 

visited TRA and discussed the Kingdom of Bahrain’s excellence programme with TRA’s Chairman and General 

Director. The aim of the programme is to promote a culture of excellence in performance across Government as well 

as in private bodies and institutions. Expected outcomes of the programme will be sustainable development within 

the Kingdom and increased competitiveness within the region. 

During the visit Mr. Mohammed Bu Hejji, the programme’s expert adviser, gave a presentation on the indicators 

for excellence in performance. He suggested that TRA would be a model for excellence in view of its policies that 

support advanced performance and pursue high-quality outputs. TRA has adopted international best practice in 

its procedures since it began. The excellence programme supports the 2030 economic vision for the Kingdom of 

Bahrain which is based on the principles of fairness, competition and sustainability. 

Senior TRA staff 

At the beginning of the year TRA had in place a number of new senior staff with the skills, expertise and experience 

to contribute to the effective regulation of the changing telecommunications market. A significant majority were 

from the Kingdom of Bahrain. 

Mr. Adel Al Showaikh was appointed as Manager of Telecommunications Access and Infrastructure bringing expert 

knowledge of access networks and the operating environment in the Kingdom. 

Mr. Mohammed Mahmood was promoted to Technical and Operations Manager a result of his dedication and 

achievements for TRA over the past three years. 

Mr. Ahmed Aldoseri was promoted to ICT Operations Manager in view of the increasing need for ICT expertise in the 

regulation of telecommunications. 

Mr. Adel Darwish was appointed as Manager of Market and Competition bringing rich telecommunications experience 

and knowledge to the role. 

Mr. Sayed Ashoor Radhi joined as Radiocommunications Operations Specialist contributing expert insight into 

frequency and radiocommunications issues. 

Mr. Eric Dunand and Mr. Philip Harris joined TRA’s Technical and Operations Directorate bringing considerable 

international experience in telecommunications, quality of service matters, spectrum management and licensing 

issues. 

As a result of these new recruitments the average number of staff increased to 28.3 employees during the year 2008, 

compared to 24.6 employees in 2007. 

An organogram showing the structure of TRA can be found near the beginning of this Report. 

Training 

Training and development of staff continued to be key in ensuring that TRA could meet international standards 

in the way it regulates. Most staff attended courses during the year and improved their knowledge of markets, 

technologies and business practices.

34 TRA Annual Report 2008 Statement of Accounts 

34 

STATEMENT 

OF ACCOUNTS 

Independent Auditors' Report to the Board of Directors of 

Telecommunications Regulatory Authority 

We have audited the accompanying financial statements of Telecommunications Regulatory Authority (Authority) which comprise 

the balance sheet as at 31 December 2008 and the statements of income, accumulated surplus and cash flows for the year then 

ended, and a summary of significant accounting policies and other explanatory notes. 

Board of Directors’ Responsibility for the Financial Statements 

The Board of Directors is 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 misstatement, 

whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are 

reasonable in the circumstances. 

Auditors’ 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 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 the auditors’ judgement, including the assessment of the risks of material misstatement of 

the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control 

relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are 

appropriate for 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 policies used and the reasonableness of accounting 

estimates made by the Board of Directors, 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 of 

31 December 2008 and its financial performance and its cash flows for the year then ended in accordance with International 

Financial Reporting Standards. 

19 July 2009 

Manama, Kingdom of Bahrain

Balance Sheet 


BALANCE SHEET 

31 December 2008 

2008 2007 

BD 

BD 

ASSETS 

Non-current asset 

Furniture and equipment 88,511 26,093 

Current assets 

Licence fees receivable 1,467,817 151,466 

Prepayments 35,402 44,995 

Accrued interest and other receivables 7,076 5,319 

Bank balances and cash 13,447,811 7,551,017 

14,958,106 7,752,797 

TOTAL ASSETS 15,046,617 7,778,890 

ACCUMULATED SURPLUS AND LIABILITIES 

Accumulated surplus 14,261,728 54,856 

Reserve for commitments 552,457 1,210,694 

14,814,185 1,265,550 

Current liabilities 

Accounts payable 168,097 1,057,870 

Accrued expenses 62,921 61,514 

Deferred income 1,414 5,393,956 

232,432 6,513,340 

TOTAL ACCUMULATED SURPLUS AND LIABILITIES 15,046,617 7,778,890 

The financial statements were authorised for issue in accordance with a resolution of the directors on 19 July 2009. 

Dr. Mohammed Ahmed Al Amer 

Chairman of the Board of Directors 

Geoffrey Alan Horne 

General Director

36 TRA Annual Report 2008 Statements of Income and Accumulated Surplus 

STATEMENTS OF INCOME AND 

ACCUMULATED SURPLUS 

Year ended 31 December 2008 

STATEMENT OF INCOME 


BD 

BD 

INCOME 

Licence fees 13,506,011 2,888,963 

Frequency and spectrum fees 2,069,723 - 

Interest income 519,535 - 

16,095,269 2,888,963 

EXPENSES 

General and administration 2,033,457 1,691,247 

Consultancy fees 115,800 152,648 

Publicity and promotions 196,699 120,572 

Directors remuneration and expenses 113,183 115,696 

Depreciation 32,639 28,300 

2,491,778 2,108,463 

SURPLUS FOR THE YEAR 13,603,491 780,500 

STATEMENT OF ACCUMULATED SURPLUS 

Accumulated Reserve for 

surplus commitments Total 

BD BD BD 

Balance at 1 January 2007 19,467 485,050 504,517 

Payment to the Ministry of Finance (19,467) - (19,467) 

Surplus for the year 780,500 - 780,500 

Net transfer to the reserve (725,644) 725,644 - 

Balance at 31 December 2007 54,856 1,210,694 1,265,550 

Payment to the Ministry of Finance (54,856) - (54,856) 

Net reversal from reserve 658,237 (658,237) - 

Surplus for the year 13,603,491 - 13,603,491 

Balance at 31 December 2008 14,261,728 552,457 14,814,185

Statement of Cash Flows 


STATEMENT OF CASH FLOWS 

Year ended 31 December 2008 


BD 

BD 

OPERATING ACTIVITIES 

Surplus for the year 13,603,491 780,500 

Adjustments for: 

Depreciation 32,639 28,300 

Operating surplus before working capital changes 13,636,130 808,800 

Licence fees receivable (1,316,351) (160,166) 

Prepayments 9,593 - 

Accrued interest and other receivables (1,757) - 

Accounts payable (889,773) 926,478 

Accrued expenses 1,407 (104,390) 

Deferred income (5,392,542) 278,781 

Net cash from operating activities 6,046,707 1,749,503 

INVESTING ACTIVITIES 

Purchase of furniture and equipment (95,057) (4,204) 

Payment made to Ministry of Finance (54,856) (19,467) 

Net cash used in investing activities (149,913) (23,671) 

INCREASE IN CASH AND CASH EQUIVALENTS 5,896,794 1,725,832 

Cash and cash equivalents at beginning of the year 7,551,017 5,825,185 

CASH AND CASH EQUIVALENTS AT THE END OF YEAR 13,447,811 7,551,017

38 TRA Annual Report 2008 Annex A 

38 

ANNEXES 

Annex A 

Telecommunications Licences issued to operators as of 2008 

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 Electronical and Phone 

ICOL Plus W.L.L. 

Kulacom Communication S.P.C. 

Zajil Information Technologies International 

Life Communication B.S.C. (closed) 

CLASS LICENSE FOR VALUE ADDED SERVICES (VAS) 




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 

Date of Issue 

21-Jun-03 

18-Aug-03

Annex A (continued) 


Socite International De Telecommunications Aerona 


BT Solutions Ltd (Bahrain Branch) 


Bahrain Call 

Infonet 

Star Telemedia 

Rawabi Al Bahrain Co. W.L.L. 



Mobile Information Services 

ICOL Plus W.L.L. 




Fakhroo Information Technology Services W.L.L. 


Kasiopia NetCom-KNC, (Bahrain) 





Star Gate Telecommunication W.L.L. 

Fusion Bahrain W.L.L. 

Access Telecommunication 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. 




First International Network 


OSS Telecommunication W.L.L. 


Mena Business Services (Foreign Branch) 


Al Ghazal Telecommunications Co. W.L.L. 



INDIVIDUAL LICENSE FOR INTERNATIONAL TELECOMMUNICATIONS FACILITIES 






31-Aug-03 

25-Sep-03 

20-Mar-04 

4-Apr-04 

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 

Date of Issue 

21-Jun-03 

9-May-04 

3-Nov-04 

27-Feb-05

40 





FLAG Telecom Group Limited-Bahrain (Branch Office) 









INDIVIDUAL LICENSE FOR INTERNATIONAL TELECOMMUNICATIONS SERVICES 




IMC Telecom W.L.L. 


Digi Connect Co. W.L.L. 

2Connect WLL 

Socite International De Telecommunications Aerona 




Fakhroo Information Technology Services W.L.L. 








BT Solutions Ltd (Bahrain Branch) 


Star Gate Telecommunication W.L.L. 

Fusion Bahrain W.L.L. 

Access Telecommunication W.L.L. 



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. 



First International Network 





Al Zubara International Trading 

Hawar Telecommunications Company W.L.L. 


Al Ghazal Telecommunications Co. W.L.L. 



27-Feb-05 

22-Mar-05 

20-Apr-05 

15-May-05 

28-Aug-05 

17-Oct-05 

25-Aug-06 

11-Feb-07 

2-Apr-07 

1-Jul-07 

28-Jul-08 

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



INDIVIDUAL LICENSE FOR MOBILE TELECOMMUNICATIONS 




INDIVIDUAL LICENSE FOR NATIONAL FIXED SERVICES 














INDIVIDUAL LICENSE FOR PAGING SERVICES 



INDIVIDUAL LICENSE FOR PUBLIC ACCESS MOBILE RADIO SERVICES 



INDIVIDUAL LICENSE FOR VERY SMALL APERTURE TERMINAL (VSAT) 



Bahrain Car Racing Circuit (BCRC) 

Gulf Aluminium Rolling Mill Co. B.S.C. (GARMCO) 


Bahrain Petroleum Company 

Court of Crown Prince 

Bahrain Training Institute 

BNP Paribas 

Awal Bank B.S.C. (closed) 

INTERNET EXCHANGE LICENSE 


Bahrain Internet Exchange 


NATIONAL FIXED WIRELESS SERVICES LICENSE (NFWS) 




Date of Issue 

22-Apr-03 

21-Jun-03 

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 

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 

Date of Issue 

14-Mar-04 

13-May-07 

Date of Issue 

8-Jan-07 

8-Jan-07

42 


Annex B, Annex C, Annex D 

Annex B 

CONSULTATIONS 

Consultation 

Consultation on the Strategic and Retail Market Review 

Consultation on Significant Market Power Designation 

Consultation on a Draft Individual Value Added Services Licence 

Consultation on the Proposed Guidelines for Telecommunications Infrastructure Deployment 

Consultation on a Draft Regulation on Notification of International Roaming Tariffs by SMS 

Consultation on Quality of Service 

Consultation on a Decision on the Requirement to Register Subscriber Details of 

Prepaid Mobile Customers 

Consultation on a Draft Regulation on Wireless Telecommunications Network Facility Sharing 

Consultation on the Draft Frequency Migration Regulation 

Consultation on the Implementation of Number Portability 

Consultation on Competition Guidelines 

Consultation on Mobile Termination Rate Regulation 

Date of Issue 

28-Feb-08 

28-Feb-08 

19-Mar-08 

25-Mar-08 

27-Mar-08 

14-May-08 

9-Jul-08 

11-Aug-08 

14-Aug-08 

14-Oct-08 

4-Nov-08 

25-Nov-08 

Annex C 

REGULATIONS, DETERMINATIONS AND DECISIONS 

No. Regulations, Determinations and Decisions Date of Issue 

Determination of Significant Market Power Designation 

3-Jun-08 

Case No. 01/08 

Non-opposition of a transaction under 

Telecommunications Mergers and Acquisitions Regulation 3-Jun-08 

Case No. 02/08 Decision on TRA case reference no. 2/08 - 

Etisalcom Bahrain W.L.L. (change of ownership) 

5-Jun-08 

Regulation 1 of 2008 Regulation on Notification of International 

Roaming Tariffs by SMS 

17-Jul-08 

Regulation 2 of 2008 Regulation on the Requirement to Register 

Details of Prepaid Mobile Telecommunications 

Services Subscribers 

31-Jul-08 

National Numbering Plan 

10-Sep-08 

Regulation 4 of 2008 Regulation on the Approval of the National 

Numbering Plan 

10-Sep-08 

Regulation 5 of 2008 Regulation on Quality of Service 11-Sep-08 

Regulation 3 of 2008 Regulation on the Migration of Users or 

Services from, or within Frequency Bands 

6-Nov-08 

Decision No. (5) of 2008 Decision amending some provisions of the 

Regulation issued by Decision No. 2 of 2008 requiring the 

licensed operators to establish a database of prepaid 

subscribers to mobile telecommunication services 

24-Dec-08 

Annex D 

ORDERS 

Order No. Orders Date of Issue 

Order 1 of 2008 

Order to Batelco relating its obligation to provide 

Customer Access Tail Service 

30-Mar-08

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

Website: www.tra.org.bh

Annual Report 2008 - TRA - Telecommunication Regulatory Authority

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