BAHRAINI telecom operator Batelco says it has already commenced a major restructuring, which will effectively split the firm in two.
The company has been ordered to divide its business into two separate entities by the government.
One will continue to focus on retail, while the other will be tasked with providing wholesale broadband services to all licensed telecom operators on an equal basis – including its own retail division.
Operational
The move was initiated by a royal decree issued last September, which parliament retrospectively approved on March 20 and the Shura Council is also expected to rubber stamp.
It is a key part of the country’s Fourth National Telecommunications Plan, which was approved by the Cabinet in May 2016.
Batelco chief executive Mohamed Bubashait told the GDN yesterday that the two new divisions were expected to be operational by the third quarter of this year.
“It’s not a structural or ownership separation,” he said.
“The process is what we call within telecom literature a ‘functional separation’.”
The move has been instigated to ensure fair competition in the telecom sector, in which Batelco was the only player until 2003.
It effectively ends Batelco’s existing monopoly over the country’s fibre-optics network, since its new wholesale division will have to grant other operators access.
Batelco is currently the only Internet Service Provider (ISP) offering broadband packages on the fibre-optics network, with most of its competitors offering 4G services via desktop routers.
“This is to ensure fair play so that all operators are treated equal,” explained Mr Bubashait.
“I would like to clear all the confusion and stress there is no new company being created , as it will still be the same company.
“We have now taken this to a new level where Batelco has to ensure all its wholesale-related functions within the company are amalgamated under one division.”
The decision to split Batelco in two is the latest in a series of measures designed to open up the telecom sector.
In 2009 Batelco was fined by the Telecommunications Regulatory Authority for preventing other operators from accessing the country’s international data lines.
At the time the TRA said Batelco had refused to allow other operators access to the landing station for a submarine cable, Bahrain’s only connection to international telecommunications networks, which was located on Batelco’s premises.
Access
Bahrain’s Fourth National Telecommunications Plan, signed by His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa, makes clear Batelco’s responsibilities to ensure fair and equal access to the National Broadband Network through its new wholesale division.
It obliges Batelco to offer broadband services to its competitors on the same basis as its own retail unit “in accordance with the same time scales and pursuant to the same terms and conditions, including everything related to price, service levels, information about product development and launch, and utilisation of systems and processes.”
The plan also targets 100 per cent nationwide access to secure, affordable and ultra-fast broadband for all businesses, as well as 95pc cent of private households.
“Batelco has already invested in the high speed fibre-optic network and delivered more than 50pc of the requirements stated in the Fourth National Telecommunications Plan,” Mr Bubashait.
“We expect by mid-next year all the government targets stated in this plan will be achieved, that includes 99pc coverage of high speed fibre-optic network.”
He was speaking yesterday on the sidelines of Batelco Group’s annual general meeting at its Hamala headquarters.
The meeting was headed by Batelco chairman Shaikh Mohammed bin Khalifa Al Khalifa, who welcomed the more open telecoms market.
“There is no monopoly,” he said.
“We are three players in the market now operating on a level playing field.”
sandy@gdn.com.bh
BD41.6m dividend – Page 15
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