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Bahrain Region - Telecommunication and Internet Services Sector - Case Study Example

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The paper "Bahrain Region - Telecommunication and Internet Services Sector" states that the future is bright if the factors included in the economic vision 2030 are followed in a positive manner. As Bahrain welcomes expatriates from all over the world, the country must be maintained. …
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Bahrain Region - Telecommunication and Internet Services Sector
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Download file to see previous pages The international call minutes are around 70 % and the consumers use prepaid calling cards for making international calls. However, the rate has considerably fallen down due to the introduction of VoIP based calling cards. Likewise, they are of low cost and the majority of the population in Bahrain is expatriates (Research, 2011). Moreover, in 2008 -2009, Wimax was launched by two different service providers and in the mid-2009, Wimax demonstrated a 30% share in the broadband services sector (Research, 2011). The telecommunication industry is continuously evolving due to up-gradation of next-generation networks. Moreover, the industry has its own significance in the context of human communication regardless of time, location and environmental factors, however, call rates may vary due to roaming services. Apart from advances in human communication, the industry has contributed to providing a carrier of digital transmission, for providing Internet to the people. The telecommunication and Internet industry in Bahrain has emerged as one of the fasting growing market. As per the telecommunication regulatory authority (TRA), a report was published indicating the rapid increase in revenue by 74% between 2003 – 2006. Likewise, the industry contributed $194 Million in 2003, as compared to $342 Million in 2006. Both of these figures demonstrate a considerable rise in revenue by 28%. Moreover, the working force also increased to 2,322 from the total number of employees in 2003 i.e. 1,808 (Telecommunications market in Bahrain one of the fastest-growing. 2007). The figures are from the first quarter of 2006. Moreover, the report also concluded an internet connection in almost half of the houses as compared to the two-third percentages of fixed landline users. Furthermore, director of the telecommunication regulatory authority (TRA) praised the competitive marketing strategy of the government that resulted in a rise of the growth rate for the telecommunication and Internet markets (Telecommunications market in Bahrain one of the fastest-growing. 2007). Economic Trends The telecommunication sector in Bahrain has provided less opportunity for foreign companies who wish to launch telecommunication providers. However, regional companies are welcomed whole-heartedly. The reason behind this strategy is the monopoly that has surrounded the telecommunication sector by party public-owned operators know as Bahrain telecommunication company (Batelco). The government has shown fewer efforts to modify the strategy in order to make competitors in the market. However, opportunities for foreigners are in terms of tenders of an investment program launched by Batelco (Noticiasdot.com ). Moreover, the development of telecommunication infrastructure is up to the mark in spite of a non-competitive environment. This is mainly because the enlightened policy of modernization and diversification of Batelco is facilitated by its close resemblance with a strategic partner, named as Cable and Wireless, sharing a 20% stake in the company (Noticiasdot.com). The priority is given to the implementation of a latest hardware equipped network that is compatible with wireless networks, high tech multimedia, and data services. These high tech services play an important role in the country as Bahrain is considered as a financial and regional hub.  ...Download file to see next pages Read More
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