Leadership Beyond Borders

Leadership Beyond Borders
ANNUAL REPORT 2014
At the helm
In today’s digital world, individuals are using their
mobile devices in different ways – as a tool for
communication, data transfer, work aid, social
networking etc. As a result, regulators are taking
on new tasks every day – working to ensure
services are developed on a nation-wide basis
for sustainable and inclusive social and
economic development. Committed to being a
leader and exemplar at both the national and
international levels, the TRA has overseen a vast
growth in Bahrain’s international connectivity and
capacity.
Vision & Mission
Focused
Chairman's Statement
Board of Directors
VISION
MISSION
A Communications Environment That Enriches The
Social And Commercial
Fabric Of The Kingdom Of
Bahrain.
To Develop A Competition Led Market For The Provision Of
Innovative Communications Services, Available To All,
Which: Encourages Sustainable, Economically Efficient
Investment; Respects The Interests Of Consumers; Fosters
Ecologically Friendly Initiatives; And Supports The Social
And Commercial Welfare Of The Kingdom Of Bahrain.
To Continue To Build As An Exemplar Regulator Within The
Region Through Thought Leadership And To Be The
Employer Of Choice By: Investing In Our People To Develop
A Professional, Passionate Team; Transparency And
Fairness In Operations; And Adherence To Quality Assurance.
VALUES
Inspiring:
Our imagination, clarity of thought and
clear leadership stimulates innovative
thinking that meets the needs of
tomorrow.
Commitment:Our drive and determination to achieve excellence, our discipline
in the execution of our duties, our focus
on the development of our team, and
our sense of responsibility instil passion
for the development of the Kingdom of
Bahrain.
Respect:
Our respect for each other is ensured by
listening, collaborating and having
consideration for each other, the public
and licensees we work for, the environment and future generations.
Balanced:
Our evidence based approach to
decision making and our adaptability
ensure that we remain proportionate,
consistent, fair and just
Transparency:
Our open and inclusive approach to
regulation ensures that we are held
responsible and our actions and
decisions are understood.
TRA’s Focused Strategy Framework
With the aim of achieving its mission and vision objectives, as well as
ensuring it is moving in the right direction, TRA has designed a Focused
Strategy Framework, which outlines the Authority's guidelines to create a
communications environment that enriches the social and commercial fabric
of the Kingdom of Bahrain. TRA will ensure its plans and initiatives are
consistently implemented in line with the following strategic points:
F
O
Foster
Competition:
Optimised
Technologies:
Initiatives and effective
regulation that foster the
continued growth
and development of the
telecommunication
sector by way of
effective and fair competition.
Initiatives that encourage
the adoption, deployment, and optimisation
of the latest technologies
that support the growth
of the market and deliver
higher quality of services
to consumers.
C
Consumer
Empowerment:
Initiatives that provideknowledge and tools to
empower the consumers
and enrich their experience of the Telecommunications services and to
allow them to make
well-informed decisions.
U
Ubiquitous
Broadband:
Initiatives undertaken to
ensure that broadband
services of high quality
and competitive prices
are available to all local
stakeholders
S
Security and
Cyber Safety:
Initiatives that support a
safe and secure telecommunications infrastructure to deliver highly
reliable Electronic
Communication Services.
E
Efficient
Regulator:
Initiatives that adapt,enhance, and update the
framework, processes
and tools used by the
Authority in the implementation of its duties.
D
Dynamic & Effective Regulatory
Framework:
Initiatives undertaken to
adapt regulations over
time, with the aim of
continuously reviewing,
updating, and improving
the telecommunication
regulatory framework,
and maintaining proportionate focus where
necessary
While global market conditions remained challenging
throughout 2014, the TRA continued to work under the
regulatory framework of the International Telecommunications
Union (ITU), aligning its strategic objectives with the ITU’s
strategic plan. Our efforts have been recognised time and
again as the World Bank positioned Bahrain at the forefront of
Arab countries in terms of the liberalisation of the
telecommunications sector. In particular, the World Bank
confirmed that Bahrain is the only country in the region to
have adopted a market structure and regulatory model similar
to the European Union (EU) as well as is the only MENA
country which has reached the mature stage in fixed and
mobile broadband market development.
Dr Mohammed Ahmed Al Amer
Chairman
CHAIRMAN’S
MESSAGE
In today’s digital world, individuals are using their
mobile devices in different ways – as a tool for
communication, data transfer, work aid, social
networking etc. As a result, regulators are taking on
new tasks every day – working to ensure services are
developed on a nation-wide basis for sustainable and
inclusive social and economic development. Thus, we
are following the ITU-T’s recommendations in relation
to standardizations and Spectrum management
including the allocation and assignment of
telecommunications frequencies, performed in
accordance with the ITU’s radio regulations and other
regulatory instruments issued by the ITU-R. At the
same time, this past year we focused on consumer
education and empowerment. Market competition in
the sector in Bahrain has been healthy with
telecommunications making a significant contribution
to the country’s GDP and consumers being enabled to
select the services most suited to their needs from the
wide range of available products and services.
In fact, during 2014, the telecommunications sector
revenue amassed 430 million BD with approximately
3,100 employees. With around 2.3 million mobile
subscriptions, Bahrain's mobile penetration rate has
been assessed at 177%. The total number of
broadband subscribers was around 1.8 million and the
penetration rate represented 142%. Most importantly,
our continuous customer engagement programmes
and assessments found that 88% of mobile users,
90% of fixed line users and 92% of internet users were
very satisfied with their services. Similarly, we oversaw
a dramatic reduction in mobile, mobile broadband and
fixed broadband prices in 2014 (65%, 25% and 32%
respectively).
CHAIRMAN’S
MESSAGE
Committed to being a leader and exemplar at both the
national and international levels, the TRA has overseen
a vast growth in Bahrain’s international connectivity
and capacity. Today there are 6 international routes and
the available capacity has increased from 22 Gbps in
2009 to 360 Gbps in July 2014.
Our teams have streamlined the sector’s processes as
well, slashing the processing time for mobile number
portability and fixed number portability requests – from
48 hours to 8 business hours and from 72 hours to 8
business hours respectively.
The TRA is determined to ensure that no licensee has a
position of significant market power in the retail market
for the supply of mass-market broadband internet
access services from a fixed location. Going forward
therefore, the TRA is working closely with the
government on the development of the 4th National
Telecommunications Plan (NTP). Based on the new
NTP, the TRA’s strategy will be revised and accordingly
our working plan for the next three years will be
developed. The key areas to focus on are the
establishment of a national broadband network,
assessment of the level of competition in different
markets, a regulatory framework for Net Neutrality and
OTT, convergence of ICT services, data protection,
securing the telecoms infrastructure, and the
development of a telecommunications spectrum plan
for 2020 and beyond with the focus on LTE Advanced
and 5G.
We will continue to regulate the sector and protect
consumer interests in addition to promoting effective
and fair competition amongst new and existing
licensed operators. With a strong and well-informed
team, we are well positioned to tackle new challenges
and changing market conditions.
Dr Mohammed Ahmed Al Amer
Chairman
BOARD OF
DIRECTORS
DR. AHMED MOHAMMED
AHMED AL AMER
CHAIRMAN
SH. HAMAD BIN MOH'D
AL KHALIFA
BOARD MEMBER
MR. TAREQ ABDUL JALIL
AL SAFFAR
MEMBER
COLONEL RIYADH
EID ABDULLA
MEMBER
The Board of the Telecommunications Regulatory Authority (TRA)
is appointed by His Majesty, King Hamad bin Isa bin Salman Al Khalifa,
under Royal Decree based on a proposal from the Council of Ministers of the
Kingdom of Bahrain.
MR. ISA ABDULRAHMAN
MEMBER
GENERAL
DIRECTOR
STATEMENT
Mohamed Hamad Bubashait
General Director
80%
Throughout the year we found that Bahrain generally compares well with
GCC and Arab countries across a range of telecommunications services.
Bahrain is mentioned favourably in the recent ITU report in relation to the
pricing of mobile broadband services where Bahrain ranked 11 out of
110 countries in terms of mobile broadband affordability, with mobile
broadband prices representing less than 1% of monthly GNI per capita.
Another satisfying outcome of the year’s work was the result of our
survey of residential users of telecommunications services in Bahrain.
This revealed that more than 80% of customers are satisfied with their
telecommunications services. Our staff too, a long term investment in
their professional skills and growth, have described their satisfaction
with the educational opportunities provided.
Cognisant of the changing challenges of the digital world, the TRA team
will continue to work closely with the government and other
stakeholders to address persistent issues related to Internet application
services by providing guidelines to promote leading-edge services and
responding to the needs of consumers and businesses. I am confident
that our teams will continue to excel and that the TRA will continue to
transform the regulatory environment in the region and beyond.
Mohamed Hamad Bubashait
General Director
EXECUTIVE
MANAGEMENT
TRA Organisational Structure at the end of 2013
TRA was established by Legislative Decree No.48 of
2002 promulgating the Telecommunications Law. Its
duties and powers include protecting the interests of
subscribers and users and promoting effective and fair
competition between established operators and new
entrants to the telecommunications market in the
Kingdom of Bahrain. TRA carries out its duties
independently and in a transparent and
non-discriminatory manner. The Board of Directors
oversees the activities of TRA. The General Director, Mr
Mohamed Hamad Bubashait, is responsible for the
day-to-day operation of the Authority.
The General Director is appointed by His
Majesty, King Hamad bin Isa bin Salman
Al Khalifa, based on the recommendation
of the Board of Directors of TRA and
proposal of the Council of Ministers.
Mohammed bin Hamad
Bubashait
Faisal bin Ali Aljalahma
Dr. Khalid bin Duaij Al Khalifa
Sh. Abdulla bin Humood Al Khalifa
Basil Habib Alarrayed
Mohammed Nasser Ali
General Director
Director of Cyber Security
Head of Corporate Branding
Director of Finance & HR
Director of Consumer Affairs
Chief Internal Auditor
Mohammed bin Abdulla Alnoaimi
Mohamed bin Yousif Al-Binali
Dr. Jean Pierre Scerri
Taiba Mohammed Albinali
Director of Technical & Operations
Acting Director of Legal Affairs
Director of Market & Competition
Head of Media and
Communications
Consumers
Enabling consumers is at the heart of the TRA’s mission,
therefore the level of consumer engagement was further
ascertained through electronic customer satisfaction ratings
which reflected an evident improvement in the operations of
the Consumer Affairs Directorate throughout the year with
regards to consumer interaction.
Empowerment
Engagement
Protection
As the regulatory body within the Kingdom,
the TRA takes its responsibility to protect
consumers’ interests and support their
experience very seriously.
Consumer
Empowerment
As the regulatory body within the Kingdom, the TRA takes its responsibility to protect the consumers’
interests and support their experience very seriously. As such, 2014 saw considerable advances in the
handling of consumer complaints, enquiries and suggestions: from reducing the number of days it takes
to resolve 90% of complaints from 45 days to 30 days which represent 33% enhancement in the process
of complaint management.
Also, the introduction of advanced automated processes, enhanced consumer services and the sourcing
of relevant information in a timely manner, which are all the result of parterning with an effective and
award-winning call centre with an emphasis on performance, operational excellence and innovation, a
considerbale improvement in consumer engagement was achieved.
It is notable that the TRA Contact Centre was consistent in achieving operational KPIs of such high
standards such as an average speed of 8 seconds to answer consumer calls and an average of 92% in
answering calls within 20 seconds. It is notable that the number of calls made to the TRA Contact Centre
was consistent throughout the year with an average of 270 calls per month. These are expected to
increase however as the authority looks to increase consumer empowerment and engagement over the
coming year with increased communication channels from Chat and Email to Fax and Video engagement.
Enabling consumers is at the heart of the TRA’s mission, therefore the level of consumer engagement was
further ascertained through electronic customer satisfaction ratings which reflected an evident improvement in the operations of the Consumer Affairs Directorate throughout the year with regards to consumer
interaction. The TRA Contact Centre followed up the complaints of callers by initiating calls and engagement, providing callers with updates about their cases and its resolution. Accordingly, callers shared
positive feedback about the continued exercise and reliable support.
As a result of TRA commitment to the continuous enhancement of its mandate, the Consumer Affairs
Directorate also underwent an important restructuring programme at the end of 2014 in which three
specialist teams formed separate departments, namely Consumer Support, Consumer Protection and
Consumer Empowerment with the common goal to better serve consumers in the Kingdom of Bahrain.
Determined to represent the voice of consumers, the new departmental divisions focused on three key
areas: consumer-operator relations and support; regulation development; and consumer education. In line
with the 2-year development plan set forth that year, the Directorate’s mission in 2015 is clear with a focus
on consumer engagement and empowerment through nationwide awareness campaigns as well as
improved consumer dispute regulation. In this way, consumer, complaints and mediation procedures
should be further streamlined.
The Consumer Affairs Directorate
objective of enhancing the consumer
experience in the telecommunications
sector was achieved by proactively
protecting their rights, engagement,
education and empowerment of the
consumer.
Consumer
Engagement
The Consumer Affairs Directorate objective of enhancing the consumer experience in the telecommunications sector was achieved by proactively protecting their rights, engagment, education and empowerment
of the consumer through an effective channel of redress was most successfully accomplished through the
TRA contact centre during 2014.
As consumer awareness was gradually improved throughout the year, the inbound call volume increased
by 123% in the latter half of 2014. In fact, overall call volume is expected to amplify in the coming year
through the TRA’s pursuit of a proactive educational campaigns across all media channels. At the same
time, the call centre exceeded expectations in consumer engagement consistently during the year.
Callers’ narratives, descriptions of issues of concern and complaints were heard at length, logged and
furthermore, processes were explained clearly by the handlers. Call agents were well trained and
commended by the TRA for their efficiency and maintenance of a 8 second average speed of call answer
in the past year, despite a generous target average of 20 seconds. It is important to note that the vast
majority of calls received represented cases of ‘Overcharged Bills and Invoices,’ of which 125 were
complaints handled by the TRA and 604 calls were enquiries for further information and clarity. The
second most common consumer concern received were calls that discussed ‘Coverage’ of which a small
minority of cases (66) were complaints and the majority (244) represented enquiries. As the regulator of
telecommunications in Bahrain, the TRA‘s commitment to consumers and the maintenance of a responsive dialogue was truly enhanced by the TRA Contact Centre and the dedication of the Consumer Affairs
team.
In addition, public and industry engagement during the year was supplemented by the workshops and
events organized by the ICT department of the Technical and Operations Directorate. Thus, the Internet
Corporation for Number and Names (ICANN) Bahrain Roadshow was designed to improve public
awareness of internet governance and the model of multiple stakeholders while the IPv6 Roadshow was
organized to develop the technical knowledge of local operators’ network engineers. Similarly, an LTE
Industry Update by Huawei was conducted for local operators to increase their knowledge of industry
trends and the best practices of LTE deployments and a workshop entitled The Future of IP eXchange in
Bahrain and the GCC was run to update and brief local operators on the outcomes of the study conducted to promote Bahrain as a regional IPX hub. Fluctuating from greater public understanding initiatives to
industry-specific reviews, the workshops and roadshows were varied and immensely successful. The TRA
continued to engage with its different stakeholders and audiences in 2014, responding to public needs
and leading the application of the latest trends in telecommunications in the Kingdom.
The competition legal framework and the
Reference Interconnect Offers of mobile
operators were assessed and further refined.
These fundamental accomplishments have
been driven by the importance of safeguarding consumer interests, ensuring transparent
dealings and promoting fair and equitable
agreements.
Consumer
Protection
A core component of the activities of the TRA, both internally and externally, is the Legal Affairs Directorate, whose mandate is to provide timely, accurate and first class legal advice to the TRA in addition to
ensuring that the Authority acts within its powers in order to achieve its objectives with external entities in
the telecom and government sectors. During 2014, the team grew further as more specialised members
joined the organisation, thereby strengthening the underlying legal expertise and support abilities. The
Legal Affairs Directorate processes were enhanced while the licensing framework was reviewed and
improved for legal certainty. Also, the competition legal framework and the Reference Interconnect Offers
of mobile operators were assessed and further refined. These fundamental accomplishments have been
driven by the importance of safeguarding consumer interests, ensuring transparent dealings and promoting fair and equitable agreements.
As a result, the Reference Interconnect Offers now provides further clarity and legal certainty about the
terms under which dominant operators offer their services to other telecommunications providers, thereby
ensuring market fairness and fostering competition in the interests of consumers. Additionally, the year
saw the Directorate adopting the Dispute Resolution Guidelines, the review and amendment of the Bulk
SMS Regulation and the review and redrafting of the Prepaid SIM Card Regulation. Notably, the Dispute
Resolution Guidelines set out important principles concerning the disputes between operators; as well as
the complaints against licensees in respect of a breach of the Telecommunications Law, regulations or
their own licenses. Under these Guidelines, the TRA acts as a mediator between the parties before taking
on the role of an arbitrator. Accordingly, industry processes have been improved and efficiency and legal
certainty have been further promoted. In the coming year, the Directorate plans to collaborate with the
Cyber Security Directorate to develop, among other things, the industry’s cyber security legal framework
after a comprehensive analysis of the models adopted in other jurisdictions. The Directorate will continue
to invest in internal learning and development opportunities for its staff in pursuit of its vision to be a star
legal advisory recognized by its peers and the industry at large for the quality of its work.
Similarly, in its efforts to enhance and manage risks to the electronic communications networks and
services, the Cyber Security Directorate initiated and completed a milestone study aimed at identifying
vital measures and mechanisms for improving the security and reliability of critical telecommunications
infrastructures. The study helped the team develop a methodology that would enable the Directorate to
identify critical components in the telecommunications infrastructure as well as to assess the risk to the
identified critical components in the national telecommunications infrastructure. In the coming year, the
Directorate intends to work with licensees to ensure that the Kingdom’s infrastructure is safeguarded and
that business continuity and disaster recovery plans are put in place so that essential telecommunications
services can be maintained in the face of identified threats.
The competition legal framework and the
Reference Interconnect Offers of mobile
operators were assessed and further refined.
These fundamental accomplishments have
been driven by the importance of safeguarding consumer interests, ensuring transparent
dealings and promoting fair and equitable
agreements.
Consumer
As part of the TRA emphasis on consumer protection and child safety, the Cyber Security Directorate also
oversaw initiatives to review and raise awareness of online safety, launching the first online safety media
campaign and the SafeSurf website. With dedicated social media accounts, SafeSurf has underpinned
much of the Directorate's direction throughout the year with increased consumer dialogue and outreach.
Successful public initiatives have included the Child Online Protection Challenge, or COP, which took
place during the latter half of the year. Beginning with a dedicated workshop in partnership with the
International Telecommunications Union (ITU), the ITU-Regional Cyber Security Centre (ITU-RCC) and
ITU-IMPACT designed to facilitate capacity building and awareness amongst local policy makers and
experts within both the private and public sectors, a COP challenge targeting young children was held in
partnership with the ITU and the General Organisation for Youth and Sports, GOYS, in the Shaikh Salman
Centre on 20th November, marking Universal Children's Day.
Primarily targeting children between the ages of 11 and 14, the event was organized to raise awareness
of online safety issues and to allow children to understand how to utilize the internet responsibly. Parents
and caregivers as well as younger children were encouraged to participate in the team building exercises
and learn about best online practices. Such initiatives which hinge on public support and learning
underpinned the tasks of the Cyber Security Directorate during 2014, combining technical and regulatory
expertise. Children and caregivers form an indispensible part of the TRA audience, representing the
consumers of the future, whose interests must be safeguarded as much as possible through intensive
education programmes going forward.
We initiated our cooperation with the TRA after I attended one of their online safety workshops. For the
COP Challenge, the children at the GOYS Salman Cultural Centre prepared their group projects related to
the subject - in line with their programmes, such as IT, theatre, art or music - and they presented their
work during the event. The Challenge was very effective; the participating children now have a clear idea
of what virtual safety means.' Muneera, GOYS.
Quality of Service
Quality of Service is among the pillars by which the
TRA carries out its operations in its drive for
excellence, and is a primary responsibility as set out
in the Telecommunications Law. The TRA aims to
ensure a high standard for Quality of Service in
telecommunications is delivered to consumers in the
Kingdom of Bahrain and to safeguard their interests.
This is achieved by applying the best practices in
industry monitoring and publishing regular reports,
and the pursuit and execution of key initiatives.
Infrastructure Support
Infrastructure Support
Throughout 2014, the Licensing Department of the Technical and Operations Directorate underwent a
number of internal processes designed to support the work of TRA teams and further enhance the local
infrastructure for the telecommunications industry. Thus, the department worked to ensure only active
licensees remained in the market, initiating revocation procedures for doubtful cases. This resulted in 12
licenses being revoked by the end of the year and the number of licensees fell by 18%. Importantly, and
augmenting the direction of the Directorate, licensing KPIs were maintained covering the life cycle of the
licensee - license issuance, annual license fees and license revocation. In line with this continued
emphasis, the TRA recovered 97.2% of the outstanding amounts from 2004 to 2012 in annual license
fees. Further enhancing TRA performance and local regulation, the licensing department embarked on the
introduction of an automated licensing process during 2014. The Licensing Information Management
System (LIMS) should automate all processes related to licensees internal and external affairs, providing
ready access to reliable information for other departments within the TRA.
On the other hand, the Spectrum Management team of the Directorate focused its efforts during the year
on spectrum regulation, the protection of telecom operators' wireless access and microwave networks as
well as the review of telecommunication equipment and import controls. The team saw a vast increase in
revenues collected from spectrum use by microwave links, having approved 1,158 of the 1,300 applications received from licensees. The TRA revenue in this regard culminated to BD 2,919,446.043 Notably,
the speed at which applications for microwave links were processed also saw a marked improvement
throughout the year - the team beat its target of 12 working days processing time as the average
application processing time was 9.48 working days. These were important accomplishments for the
department and the TRA's practice in Bahrain and understanding of market movements.
Similarly, the importation of telecom equipment and its processes were further facilitated during the year
as the team developed a database for all telecommunication equipment imported into Bahrain since 2013
and provided detailed information to interested parties of the procedure involved on the TRA website. The
transparent process and its timeline for execution was managed by the department who beat the
application handling target of 7 working days due to the enthusiasm and efficiency of its staff - during
2014, the average handling time for applications was 2.95 working days. At the same time, the department further developed its processes to protect the general public from hazardous radiation. This was
supported through the purchase of technical equipment which measures radiation levels and the
introduction of regular TRA readings and the availability of the findings to the public. Further public
support was managed by the department in relation to cases of interference. Team efforts were outstanding as 98% of reported interference incidents were investigated and successfully resolved within an
average processing time of 10 days - marking a reduction in handling time of approximately 56%.
Throughout 2014, the Licensing
Department of the Technical and
Operations Directorate underwent a
number of internal processes designed
to support the work of TRA teams and
further enhance the local infrastructure
for the telecommunications industry.
Quality of Service
Bahrain infrastructure development and support last year could not have been accomplished without the
added work of the Information, Communications and Technology (ICT) Department of the Technology and
Operations Directorate. Overseeing the regulation of the national numbering plan and the number
portability system in addition to the resources of the .bh domain name registry and the overall quality of
service. The department managed the successful collection of numbering allocation fees from licensees,
achieving an increase in income resulting in BD1,004,142 collected fees. At the same time, the ICT team
closely monitored the number portability system in implementation by mobile operators and the team
managed to make all the number portability recent statistics available on the TRA website. Likewise, the
team kept a close eye on the critical KPIs relating to fixed number portability in order to safeguard the
interests of business customers vis-à-vis operators. Ensuring fair competition and the meeting of
consumer expectations, the team communicated with licensees seen to breach the target KPIs and
supervised the market improvement for users. Finally, the team reviewed all domain name applications
received, processing them within an average response time of 151 minutes, beating the 2014 target of
200 minutes.
Correspondingly, the Telecommunications Technical Office (TTO), which is responsible for enabling the
deployment of enhanced and effective telecommunications infrastructure, has exerted tremendous efforts
to process the telecommunications industry and other utilities applications to deploy infrastructure in a
timely and efficient manner. The office managed to process 8,324 wayleave applications in an average of
2.59 days versus the 5 days KPI set by the Central Planning Office in the Ministry of Works.
Another role of the TTO that goes in line with the Kingdom of Bahrain's 2030 Economic Vision to promote
the development of enhanced telecommunications networks in residential and business properties, the
TTO issued a public consultation on a position paper related to in-building telecommunications access
facilities. The consultation was to seek stakeholders' feedback that ensures developers contribute to the
provision of rights of way and passive infrastructure in order to sustain the attractiveness of these
developments, which ultimately leads to effective and fair competition amongst licensed operators
providing telecommunications services for consumers inhabiting these buildings.
Performance
As the recipient of the Best Telecom Regulator in
the Middle East Award at the fifth annual Telecom
Review Summit held in Dubai for 2014, TRA
efforts have been widely recognized by industry
veterans, government and regulatory officials
alike. This recognition has been demonstrated
throughout the year with further global reviews
and awards.
Seamless Growth
Market Positioning
Events
Leadership
Seamless Growth
Underpinning the work and evolution of the TRA has been its commitment to the development of its
human capital and the improvement of its financial and information technology services. Thus,
providing a conducive working environment for personal growth has been a key component of the
work of the Finance and Human Resources Directorate who oversaw the completion of the Leadership Development Programme in collaboration with Bond University (Australia) in 2014. Over 20
members of staff from different departments within the Authority participated in the five-day
programme which focused on Dispute Resolution, Leadership Behaviour and Strategic Management.
Correspondingly, the Authority also invested heavily in the academic development of five of its staff
through an all-expenses paid scholarship programme in some of the world’s most prestigious
universities and academic institutions including the likes of De Paul University and the University of
Michigan in America.
Encouraging staff innovation and competition, the Directorate also implemented the Performance
Management Review System which evaluates the performance of employees by a levelling committee headed by the General Director. While 60% of the review is based on the extent to which principal
objectives are accomplished, 10% is awarded for additional or support objectives while 30% of the
review is based on staff creativity and innovation in problem-solving and overall performance.
Nurturing a culture of excellence and high-level performance, the online evaluation system is rigorous
and drives staff to maintain consistent results.
Similarly, the Finance and IT teams oversaw the automation of financial services across the TRA.
Alongside the e-TRA project to automate all internal functions of the organization, the decision-making process was made more efficient and accelerated. Furthermore, ensuring that a paperless
environment supersede previous practices, the Directorate was responsible for the introduction and
implementation of a viable state-of-the-art technological infrastructure. This was in line with the team
objective of ensuring that the TRA operate as an efficient regulator through its financial and human
resources services in addition to its IT provisions and the importance of a culture of excellence.
Moreover, the TRA was distinguished further during 2014 when it became the first organisation in
the Kingdom to be officially recognised and awarded by the European Foundation for Quality
Management (EFQM) for Commitment to Excellence. Marking the excellent business environment
fostered within the Authority and its culture of transformation, the TRA’s unprecedented achievement
distinguishes it from both public and private organisations in the country.
Underpinning the work and evolution
of the TRA has been its commitment to
the development of its human capital
and the improvement of its financial
and information technology services.
Performance
Market Competition
Throughout the year, the Market and Competition Directorate has continued working
towards its objectives of assessing, designing and implementing effective market regulation. For instance, the TRA issued a Determination of Significant Market Power and a
Determination of Dominant Position in the Markets for the Provision of Broadband Internet
Access from Fixed Location and Markets for Domestic Data Connectivity. With regard to
promoting effective and fair competition, the team reviewed the Reference Offers, the
Accounting Procedures Manual, regulatory accounts and Notified Controlled Tariffs of the
dominant market operators.
Furthermore, in monitoring the telecommunications market performance, the Directorate
prepared and published a number of important reports during 2014 alongside the Market
Indicators Reports, Retail Price Benchmarking Study of Telecommunications Services in
Arab Countries, a study commissioned on behalf of the Arab Regulators Group, and the
Consumer Survey. Time and again, the TRA’s analysis of market trends and developments
have been utilized throughout the year for local and regional advancement within the
industry. Its findings have been presented in a transparent manner and are widely accessible to end-users.
In 2014, the TRA embarked on a comprehensive strategic market review of the telecommunications market in Bahrain. This strategic review supported the TRA’s overall objectives,
including the promotion of an effective and dynamic telecommunications sector as well as
the important impact that the sector has on the economy and society at large.
Likewise, the TRA’s participation in regional and international forums supported the
exchange of knowledge and awareness about the issues facing the industry. Amongst the
significant contributions was the TRA’s involvement in the ITU-D Forum hosted in Kuwait in
which a presentation was delivered on the Bahrain Bottom-up Cost Model Project, as well
as the 8th Gulf e-Commerce Forum at which the team’s domestic research on Mobile
Commerce Enablers was presented.
23%
1%
2%
13%
15%
4%
41%
Events
One of the highlights of 2014 for the telecommunications industry and Bahrain came in the
form of the 14th Global Symposium for Regulators (GSR14), which took place in the
Kingdom under the auspices of the TRA. Organised by the ITU’s Telecommunication
Development Bureau and hosted by the Government of Bahrain, under the patronage of
HRH Prince Khalifa bin Salman Al Khalifa, the Prime Minister, the GSR14 saw the assembly
of the largest gathering of the global regulatory community in Manama.
Over 700 leading specialists from 113 countries registered to attend the event, which also
attracted approximately 80 leading participants, including government ministers, heads of
regulatory agencies and industry chief executives. An important show of confidence in
Bahrain and the TRA, GSR14 was a landmark event for the industry on a global level as it
allowed for a review and working discussions of telecommunications developments and
futuristic planning in addition to the conclusion of supportive agreements.
‘GSR provides an unparalleled platform for sharing regulatory experiences and best
practices… Efforts throughout the world to spearhead innovation and investment and
protect consumer rights through the adoption of targeted ICT regulation will contribute to
making the dream of a “digital world for all” a reality,’ Dr Hamadoun I Touré, Secretary
General, International Telecommunication Union.
‘We would like to express our thanks to the organizer for this wonderful event, and for the
generosity of the Bahrain nation,’ international attendee of GSR14.
One of the highlights of 2014 for the
telecommunications industry and
Bahrain came in the form of the 14th
Global Symposium for Regulators
(GSR14), which took place in the
Kingdom under the auspices of
the TRA.
Performance
Leadership
As the recipient of the Best Telecom Regulator in the Middle East Award at the fifth annual Telecom
Review Summit held in Dubai for 2014, TRA efforts have been widely recognized by industry
veterans, government and regulatory officials alike. This recognition has been demonstrated throughout the year with further global reviews and awards.
The TRA also managed to accomplish significant achievements in international leadership through the
work of the International Telecommunications Union. During the World Telecommunications Development Conference 2014 (WTDC14) held in Dubai, UAE, during March and April, Mr Adel Darwish,
Manager of Market and Competition, was appointed Vice-Chair of Committee 4 (“ITU-D Working
Methods”) and successfully led the working group on restructuring the ITU Development sectors
study questions for the period 2015-2017.
Then, during the ITU Plenipotentiary Conference 2014 (PP14) held in Busan, Korea during October
and November, Mr Musab Abdulla, Manager of Strategy & PMO, was appointed as Chairman of the
Working Group of the Plenary (WGPL) which dealt with the policy issues of the Conference and
successfully completed all its work by consensus ahead of schedule.
The International Telecommunications Union (ITU) selected Bahrain as one of the Arab region’s
Centres of Excellence with a focus on Internet Governance for 2014-18. Centres of Excellence, or
CoEs, represent regional focal points for professional development, research and knowledge-sharing
in addition to providing specialist training for external clients.
On a regional front, the TRA has taken the lead in collaborating with the Gulf Cooperation Council
(GCC) in developing region-wide market indicator statistics to enable decision makers to have a
comprehensive understanding of the changes and progress made in the Gulf and hence, develop
appropriate policies. In addition, the TRA has been leading the roaming regulation study for the GCC.
With the TRA at the helm of the GCC Working Group, TRA representatives have been actively
studying and analyzing the roaming market and its services.
Similarly, during 2014 the TRA has been at the forefront of the global development of the future of
spectrum usage, playing a significant role in regional and international events focused on spectrum
and frequency practice. At the same time, the organization has been heavily involved with several
neighbouring states in the development of world class consumer protection measures. Leading
regulation establishment and modeling endeavours, the TRA has distinguished itself time and again in
the past year.
As the recipient of the Best Telecom
Regulator in the Middle East Award at the
fifth annual Telecom Review Summit held in
Dubai for 2014, TRA efforts have been
widely recognized by industry veterans,
government and regulatory officials alike.
This recognition has been demonstrated
throughout the year with further global
reviews and awards.
Performance
FINANCIAL
STATEMENTS
The Authority once again demonstrated its ability
to outperform the telecoms market. Outstanding
results of TRA’s Financial Audit for 2013 revealed
strong financial metrics, confirming the power of
regulator’s business model
Independent Auditor’s Report
Statement of Financial Position
Excess Income over Expenditure
Cash Flows
OPINION
In our opinion, the financial statements present
fairly, in all material respects, the financial position
of Telecommunications Regulatory Authority as at
December 31, 2014, and of its financial performance and its cash flows for the year then ended
in accordance with International Financial Reporting Standards.
INDEPENDENT
AUDITOR’S REPORT
The Board Of Directors,
Telecommunications Regulatory Authority,
Manama, Kingdom Of Bahrain.
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Telecommunications Regulatory Authority (the “Authority†), which comprise the statement of financial
position as at December 31, 2014, and the statement of excess of income over expenditure, statement of changes in accumulated funds and statement of cash flows for
the year then ended, and a summary of significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for
such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to
fraud or error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on
Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the
auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
MANAGEMENT'S RESPONSIBILITY
Management is responsible for the preparation
and fair presentation of these financial statements
in accordance with International Financial Reporting Standards, and for such internal control as
management determines is necessary to enable
the preparation of financial statements that are
free from material misstatements, whether due to
fraud or error.
OPINION
In our opinion, the financial statements present fairly, in all material respects, the financial position of Telecommunications Regulatory Authority as at December 31, 2014,
and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
EMPHASIS OF MATTER
We draw attention to Note 22 (ii) to the financial statements which describes the uncertainty related to the outcome of potential claims involving the Authority and two
licensed operators and suppliers. Our opinion is not qualified in respect of this matter.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
In our opinion, the Authority has maintained proper accounting records and the financial statements have been prepared in accordance with those records. We further
report that, to the best of our knowledge and belief, the financial information provided in the Board of Directors' Report is in agreement with the financial statements and
based on the information and explanations provided by the management which were required for the purpose of our audit, we are not aware of significant violations of
the relevant provisions of Law Number 48 of 2002 issued on October 23, 2002, having occurred during the year ended December 31, 2014 that might have had a
material effect on the business of the Authority or on its financial position.
Manama - Kingdom Of Bahrain
April 28,2015
FINANCIAL
STATEMENTS
FINANCIAL
STATEMENTS
FINANCIAL
STATEMENTS
2002
Telecommunication
Laws
A crucial need for progress in the telecommunications
sector arises, thus the Telecommunications Regulatory
Authority was established, and the Telecommunications
Law was implemented for the first time in Bahrain.
2003
Transparency
With our launch, a newfound approach to the telecommunications industry was revealed. Our dealings brought about
a clearer perspective to the oft-confusing world of telecom.
We adopted an 'Open Dialogue' policy that encouraged
interaction and feedback by exchanging ideas. Additionally,
we simplified and clarified the processes in the sector, by
making a lot of our information public. With fixed lines in
the country growing from 175 thousand to 185 thousand in
one year and mobile customer penetration at 45%, this
approach aimed to build consumer trust through
transparency.
The next step to create a healthy telecommunication
environment was our implementation of the liberalization
plan. This plan provided the country with an opportunity for
economic advancement since different sectors could
converge and create new business prospects, as well as
more global exposure for Bahrain. We provided 18 licenses
in the year; encouraging the growth of the telecommunication market to BD152 million and making it the fourth
impactful industry in the country.
At the end of 2003 the second telecommunication operator
license was granted; MTC-Vodafone began to function,
and for the first time in Bahrain there was actual competition in telecommunications.
Fully Liberal
2004
With the plans set and the telecommunication market
becoming more of a level play field, 2004 provided operators with an opportunity to shine. The launch of a second
mobile operator in the Kingdom of Bahrain breathed new
life into the market; providing consumers with the ability to
choose. This historic move created a more transparent
environment for all telecommunications stakeholders. The
impact was extensively evident; mobile penetration rose
from 45% to 57%, broadband internet penetration was at
20%, and fixed lines rose to 191,553 thousand. With a
steady growth of revenue at 5% the role of telecommunications in the Kingdom of Bahrain became essential.
Interconnection was also an area of interest, since it was
crucial for all operators to link to their networks. Without
effective interconnection the subscribers of one network
would not be able to communicate with another. This
created a larger pool of cross network opportunity.
Keeping consumer interest at heart, we implemented the
numbering initiative that introduced 8 digits to the public
and laid the foundations for current and future expansion of
lines. We also introduced the pre-carrier selection where by
the consumer now had a choice to pick which carrier they
wanted, and supported this by initiating educational
telecoms campaigns to create awareness among the
public. By July 2004, we could announce in confidence
that the telecommunication sector had been fully liberalized, as we had met each of our milestones head on in a
transparent manner.
Building Competition
2005
Pushing connectivity and progress forward we granted the
license to Bahrain Internet Exchange. Although Bahrain
Internet Exchange (BIX) began to operate the kingdom's
Internet connection point in 2004, it's full effects were felt in
2005. BIX acted as the hub for Internet connectivity and
traffic within the kingdom. This license established an
advanced, competitive offering in the kingdom aimed at
reducing costs of connectivity and increasing Internet
usage. Not only did these initiatives change the telecommunications market; it provided job opportunities for Bahraini
residents which resulted in a 20% increase in the sector.
During this active year a panel of industry experts was
commissioned to analyze and review our current performance. The panel recommended working towards a more
robust framework to allow more access to new operators
and increasing consumer protection by directly communicating to them. This is where we decided to bring consumer awareness to the forefront of our activities and we
launched our first consumer campaign. Since mobile
penetration in 2005 rose to from 57% to 81% this year,
awareness amongst younger and older generations
became crucial, so we moved to educate them about the
uses of mobile phones.
Year of The Consumer
2006
From a base of BD152 million in 2003, the telecommunications industry generated over BD253 million in 2006;
equivalent to annual average growth of about 20%. At this
point, focus has shifted solely on targeting the needs of the
consumer. Realizing the importance of the end user we
wanted to provide a means of dialogue that encouraged
active participation. When the campaign "Keep Asking"
was launched, the consumer finally had a voice in the
market. We initiated a consumer helpline where by all users
could dial in directly and provide their honest feedback on
matters that could not be solved by their operator. This
awareness push created a 35% increase in call-ins
compared to last year.
To keep the consumer's voice heard and our performance
consistent various panels were invited again for a review,
making sure our focus was clear and that nothing could
deviate us from our mission as a regulatory authority. The
common goal of protection, fairness and transparency was
being highlighted and referred to consistently. Also, as
number of internet subscribers rose incredibly in 2006 to
38,628 from 21,432 in 2005, the idea of protection and
education became something that we wanted to encourage when surfing the net.
In conjunction, we commissioned a Consumer Advisory
Group to provide feedback on issues that the Bahraini
consumer had. As consumer confidence soared, a more
solid relationship began to surface between the public
and the TRA.
A Wireless Nation
2007 showed great signs of growth. Internet revenues rose
13% to 5.4 from 4.8 million, mobile penetration was 107%
and Bahrain had one of the highest penetrations in the
GCC comparing well with their European counterparts.
2007
As Bahrain moved forward, the hunger for innovation in the
telecommunication industry provided an opportunity for us
to license two operators with national fixed wireless
services successfully. This meant that with two more
providers for national fixed services the market was
injected once again with healthy competition and greater
choice.
Fostering Growth
2008
In 2008, we updated our direction and published the
second National Telecommunications Plan. Although there
has been growth of 11.6% in total telecommunications
revenues during this year, as well as 38% growth in the
number of staff working in the telecommunications sector
since liberalization in 2003; this document set out objectives for the Telecoms sector that needed to be implemented in the next three years. Removing barriers to competition, encouraging investment within the country, and
developing a regulatory framework were just some ways
we sought to make communication more efficient and
reliable within the kingdom.
The telecom landscape began to change as the new
National Telecommunications Plan set the primary objectives for the kingdom. the Strategic and Retail Market
Review; published in 2007, set the milestones for the year
and the market began to prepare itself as the prospect of a
third mobile operator was on the horizon.
Reaping Success
2009
By 2009, we began to establish ourselves as a forward
thinking authority; resulting in our efforts being regionally
recognized by both CommsMEA and SAMENA Telecoms
Council. This was when TRA Bahrain would stand out with
The best and most progressive regulator of the year
awards. These awards were acknowledgment for our
efforts in regulating the market, introducing healthy competition and creating choice for our consumers throughout the
years. The data provided in 2009 was a testament to our
efforts in telecommunication. Mobile subscribers had
increased steadily since 2005. By 2009, there were over
1.24 million mobile subscribers in the Kingdom of Bahrain
from 300,000 in 2002. International traffic grew by 55%
between 2008 and 2009, so the challenge at this point was
to maintain this consistency and progression by opening
up more channels of opportunity for the kingdom and its
people.
One of these important steps was opening up the market
for new mobile operator bids. The introduction of a third
party provided a broader spectrum of telecommunications
opportunities that were available to the public, a fact which
encouraged operators to drive telecommunications innovation to greater heights. Another was to break the barriers of
number portability which we began working towards at the
end of the successful year. This way we could encourage
the operators to perform at their best; guaranteeing greater
value for the consumer.
Educating the Public
on Variety
The year 2010 proved to be lucrative in many respects.
The launch of a third mobile operator in the kingdom was
the most significant step towards open competition. STC
(Saudi Telecommunications Company) launched VIVA; their
arm into Bahrain, and the challenge of innovation was set
in motion for the three existing operators. Each company
went head to head; trying to launch the newest products
and driving the telecommunication industry into dynamic
growth. The new challenge propelled the importance of our
role in the sector.
2010
Between 2009 and 2010, the number of broadband
subscribers increased by 19%. Now was the time to push
education and clarity of the telecommunications world to
the end user. The introduction of the online safety initiative
"SafeSurf" provided an educational walkthrough of the Do's
and Don't when surfing the Internet. This campaign
maintained and attempted to grow the supportive relationship we had created with our consumers.
Breaking Barriers
In 2011 the competitive barriers were eliminated with the
successful launch of the "I love my number" campaign,
promoting more freedom and churn in the market. This
initiative provided the consumer with the flexibility and
power to move where they felt they could benefit the most.
A significant advancement for the operators came in the
form of the Loop Unbundling initiative (LLU). This provided
operators with fair access to infrastructure services. With
the Loop Unbundling initiative, we provided the necessary
tools to all service providers and created more room for
innovation by ensuring that there are no constraints for
progress. The (LLU) also made sure that we provided fair
and unbiased solutions for all operators in the market.
2011
Moreover, our advancements continued their contribution
to job creation. In 2011 approximately 2,700 employees
worked directly in the telecoms sector. This showed a 50%
growth in the number of employees since liberalization in
2003. Once again, our efforts were recognized by
SAMENA Telecom council as a beacon of determination,
transparency and positive impact; landing us with telecom
regulator of the year award.
The Consumer and
The Future
2012 demonstrated a clear presence of progression. There
were approximately 1.9 million mobile subscribers in
Bahrain; representing a mobile penetration rate of 158%,
as well as a gross turnover of BD406 million representing
4% of the Bahraini GDP. After the 3-year plan launched in
2009, it was time again to take a look at the regional and
global telecom industry and evaluate Bahrain's telecommunication advancements and future challenges.
2012
Market leaders came together with the government once
more, and we published the third National Telecommunications Plan to establish short and long term objectives.
Focusing more on broadband initiatives and propelling the
Internet as a center for business convergence, we saw
e-commerce in the nation soar and global reach becoming
more prominent. These actions drew attention to the
telecoms model the Kingdom was using and the environment we had fostered, which created another success
story in the form of the "e-Economy" award from the
e-Government. 2012 culminated with the award of "Regulator of the Year" from CommsMEA commending all our
advancements and our active role in cultivating Bahrain's
economy.
4G
In keeping with the recommendations of the Third National
Telecommunications Plan (3rd NTP), the TRA commenced
the licence award process for 4G mobile services in early
2013, and by Q1 2013, both Batelco and Zain had
launched their commercial Long-Term Evolution (LTE)
services. To enable the provision of LTE based and any
other services, in September 2013, additional spectrum
have been allotted to the current three mobile operators via
Managed Assigned Process.
2013