Telecom sector benefits highlighted for Bahrain's financial services industry

A wide range of licence types, for national and international operations, are available for private investment, under a plan which will see full liberalization of the telecommunications sector by 1st July 2004, participants heard at today's presentation, organized by the Bahrain Monetary Agency (BMA).

Present were senior officials from the BMA, as well as executives from Bahrain-based banks, insurance firms and securities companies.

The presentation, held at the Bahrain Institute of Banking & Finance (BIBF), was conducted by Mr. A. Andreas Avgousti, General Director of the Telecommunications Regulatory Authority (TRA).

"The liberalization of the telecommunications sector is opening up new business opportunities for our well-diversified and mature financial services industry, which is itself a major user of high tech telecom services," said Mr. Al Bassam.

"We hope the financial services industry in Bahrain will capitalize on the benefits of the new opportunity, which will also significantly enhance operating efficiencies in the industry."

The Bahrain telecommunications sector liberalisation plan has been founded on the principle of having a strong, transparent and independent regulator in order to create a free market environment, said Mr. Avgousti.

Such a policy has ensured that the sector is attractive to new private sector entrants, with no restrictions on foreign ownership and investment.

According to the Telecommunications Law, the TRA is in a position to issue eight different types of licence, which involve paging services; digital satellite data networks (VSAT); public access mobile radio services; international telecom facilities as well as services; national fixed line services; internet service provider (ISP) and Value Added Services licence, which allows the provision of services over an existing network.

"There is no restriction on the number of licences that may be issued under each licence category, except in the case of the mobile licence," said Mr. Avgousti.

The TRA is proceeding with the licensing plan as per the timeframe set in the Telecommunications Law and should achieve a fully open market by 1st July 2004.

"The TRA would like to take this opportunity to extend its thanks to the BMA for taking an active role in understanding and promoting awareness about the newly liberalised telecommunications market in the Kingdom, as well as promoting investment in this important sector," said Mr. Avgousti.