The Batelco Group delivered solid results in Q3 07, but the new year will see further major changes in the telecommunications industry in Bahrain which may adversely affect the bottom line of the Bahrain operation in the future, stated Batelco's Chief Executive Peter Kaliaropoulos at a press briefing at Batelco's Hamala Headquarters, October 29th.
"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 US$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."
The rates for Broadband Business and Education inet packages were slashed by 50% from 1st August 07, plus automatic upgrades of speed were implemented on 31st August. Tariffs for inet Dedicated Access were reduced by up to 50 percent in July and further reductions will be announced on 1st November.
A Permanent reduction in IDD call rates to GCC countries was announced recently, dropping the per-minute rate to only 100 fils. The previous rates were 160 fils peak-rate and 140 fils off-peak.
"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.
Batelco's overseas operations are expected to take an increasingly more important role in the future success and growth of the Group, according to Mr. Kaliaropoulos.
"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", he added.
"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," commented the CE.
"The fundamental priorities that will shape our 2008 business plan for the Kingdom will be an improvement in overall productivity and customer service and, lower operating costs."
"This will allow us to continue delivering value for money and service innovation to customers, which ultimately makes our business successful."
Mr. Kaliaropoulos stressed that Batelco will continue to invest in areas such as mobility, broadband, data centres and facilities management, while diligently managing costs.
"It's about getting the balance right," he said.
"Batelco will continue to be one of the biggest employers of Bahrainis in the Kingdom. Currently, 94% of staff are Bahraini nationals. We aim to maintain that level and are committed to the ongoing development of our workforce through comprehensive training programmes."
Batelco's efforts were recognised this year by the Labour Ministry who presented the Company with two awards at a prestigious ceremony held under the patronage of the Minister of Labour Dr. Majeed Bin Mohsin Al Alawi.
Batelco was awarded for its excellence in Training & Development for 2006 and also for its Bahrainisation programme.
"A number of our Bahraini staff are also making their mark at our sister companies overseas and we aim to develop several more in preparation for taking up key positions in future new overseas acquisitions," Mr. Kaliaropoulos concluded.
-Ends-
About Batelco
Bahrain Telecommunications Company (Batelco) is the leading integrated communications provider in the Kingdom of Bahrain and an emerging force among the regions key telecommunications players.
Batelco serves both the corporate and consumer markets in the most liberalised and competitive environment in the Middle East, and remains committed to delivering cutting-edge telecommunications to its customers in Bahrain and the MENA region. The Company's management and staff are driven by an enthusiasm for delivering the best customer experience based on innovation, affordability and reliability of products and services.
Batelco's specialised services cover the full spectrum of telecommunications solutions for residential and business customers and span a comprehensive range of mobile services, international roaming, high-speed Internet connections, satellite services, WiFi, MPLS IP-VPN network provisioning and management, Datacoms services over fixed, wireless and internet platforms, managed services, systems integration and enterprise solutions.
Batelco has invested US$1.4 billion in Bahrain's telecom infrastructure over the past 26 years, including significant investment in Next Generation Networks infrastructure which has reinforced the Kingdom's position as a leading communications hub. The Company's shares are listed on the Bahrain Stock Exchange with a total capitalization of approx US$ 3.2 billion as of September 2007.
With an ongoing strategy to grow overseas, the Batelco Group incorporates joint venture operations in Jordan, Kuwait, Yemen, Saudi Arabia and Egypt.
This press release has been issued by Batelco's Corporate Affairs department.
For further information, please contact:
Batelco Corporate Affairs General Manager Ahmed Al Janahi
TEL: +973 1788 4337,
e-mail: cf@btc.com.bh
© Press Release 2007
