THE_Batelco Group delivered solid results in Q3 2007, but the new year will see further major changes in the telecommunications industry which may adversely affect the bottomline of the Bahrain operation in the future, stated Batelco's chief executive Peter Kaliaropoulos at a press briefing at its Hamala headquarters.
"The telecoms sector in Bahrain will continue to undergo fundamental changes as new operators roll-out new services for broadband, IDD and mobiles. With intense competition in the communications sector, Bahrain's consumers and business customers will continue to reap the benefits," he said.
Whilst all operators have the right to invest in new telecommunications infrastructure, the great majority of new operators are expected to rely on Batelco's kingdom wide infrastructure. Batelco has invested more than $1.4 billion in Bahrain's telecoms infrastructure over the past 26 years.
"Competition not only ensures customers benefit from better service, lower prices and greater choice but it also creates a continued opportunity for Batelco to transform its operations and company culture into one of the best performing and most competitive companies in the Middle East."
Mr Kaliaropoulos said that strategies based on a superior customer experience and segment marketing go along way to ensuring that customers remain loyal in a competitive market place.
"Despite the competitive pressures and significant regulatory intervention, Batelco delivered to its customers in Bahrain a greater variety of mobile, internet and voice offerings in 2007 than ever before."
As part of the Business Benefit Campaign, Batelco announced further reductions on its Inet Dedicated Access services. With effect from November 1, business and educational customers will pay less for rental charges.
This is the second reduction in 2007 and with the accumulated price cuts customers will now pay up to 50 per cent less.
Batelco corporate affairs general manager Ahmed Al Janahi said that as a result of this tariff reduction, Batelco Inet Dedicated access tariffs are among the most competitive in the GCC.
"Batelco has previously promised its business customers to offer further reductions on its inet dedicated packages and now we are delivering on our promises," said Mr. Al Janahi.
"We are delighted to offer these very competitive tariffs which will allow our customers to enhance their productivity and grow their business," he added.
Inet Dedicated Access Service offers round-the-clock, highly reliable Internet access at speeds of up to 100Mbps. The dedicated connection is enabled through a point-to-point data connection using Local Leased or LAN Connect or state-of-the art MPLS technologies, allowing companies to connect their whole network to the Internet.
"In addition, Batelco's new mobile broadband 3.5G network, at an investment of BD7.3 million, will soon be launched with ambitious targets of speeds and services equal to, or better than other international markets," said Mr Kaliaropoulos.
"Batelco's overseas operations are expected to take an increasingly more important role in the future success and growth of the Group.
"Our third quarter results for 2007 confirmed that whilst the group's profits and revenues are growing, the kingdom is no longer the engine of growth for Batelco."
"This was anticipated and our results reflect the execution of our strategy to invest overseas.
"It is anticipated that this trend will continue, and with our operations in Saudi Arabia as part of the Atheeb consortium, to commence business in mid-2008 and add to the equation, we look forward to profitable returns in 2008 and beyond. The slowdown in growth in Bahrain requires careful management of the business and ongoing transformation."
