Bahrain's telco market exceeds US$450 million

Bahrain’s telecommunications market is one of the most profitable and successful, according to the Arab Advisors Group. At the end of 2001, the island’s total communications revenues exceeded US$450 million.

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By  Matthew Southwell Published  September 8, 2002

Bahrain’s telecommunications market is one of the most profitable and successful, according to the Arab Advisors Group. At the end of 2001, the island’s total communications revenues exceeded US$ 450 million, with voice services, GSM and fixed lines contributing 68% of Batelco’s total revenues.

Furthermore, the analyst house predicts that the number of GSM subscribers in Bahrain will increase rapidly in the coming years — by 2006 it suggests the island’s GSM subscriber base to reach 625,000 in 2006, a penetration rate of 77%.

Such strong growth leads Arab Advisors Group to suggest that Bahrain’s telco market is in a good condition for the forthcoming market liberalisation. It suggests that the “healthy state of the savvy and profitable Batelco means that the government will not fear for the operator from competition.”

Arab Advisors Group predicts that internet, datacomm and GSM services will be the first market segments opened up for competition, as these currently boast higher than regional average rates. And, given Batelco’s performance in these market sectors, the analyst house says “new entrants may have a lot to fear from Batelco should a fair regulatory regime be absent from Bahrain.”

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