Annual Report 2013

Enabling INNOVATION 1

P.O. Box 10353 Manama. Kingdom of Bahrain Tel: +973 17 520000 Fax: +973 17 532125 Consumer Line: 81188 e-mail: [email protected] Website: www.tra.bh

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06 Enabling Innovation 08 Vision, Mission & Values 10 Board of Directors 12 Executive Management 14 Chairman’s Statement 16 Committed to Excellence 18 General Director’s Statement 22 TRA’s Focused Strategy Framework 24 Mast Evolution 26 Highlights 2013 32 Consumer Focus 38 The Safe Surf Campaign 42 Quality of Service 50 Third National Telecommunications Plan 54 Workshops & Other Happenings 60 TRA Family 62 Financial Statements 70 Annexes 2013 Enabling Innovation CONTENTS Awards and Recognition In a market where the latest technologies and advanced 30 information and communications services are critical, TRA promotes an environment where operators constantly strive to stay ahead of the curve. This ensures diversified and 46 Market Indicators innovative telecommunication solutions, which enhance consumers’ experience. 20Post 3G Technologies Annual Report 2013 5 6

Reaching for the skies: 01 Fostering Big Ideas TRA’s leadership and strategic focus on substantial development in Bahrain’s telecoms market have created Enabling a corporate culture that values innovation. In return, the Kingdom’s consumers are consistently offered cutting-edge Innovation technologies and services that set unrivaled benchmarks for Bahrain’s open economy policy, coupled with TRA’s other regulators in the region to follow. strategy to develop the telecommunications sector, have paved the way for it to be positioned as an innovative telecom hub.

Having achieved its initial objectives of creating sound regulatory framework and enabling competitive market, the regulator’s main focus for 2013 was to propagate the latest technologies and advanced information and communications services, which are critical to the telecommunications sector and more generally to the economy of the Kingdom of Bahrain.

As a result of TRA’s efforts, the Kingdom became the first country in the Middle East and North Africa (MENA) to have introduced number portability for both fixed and mobile networks, following a thorough regulatory programme. The Authority is in the process of developing full integration of the current Numbering Management System (NMS) with number portability and TRA financial systems as well as reducing human errors and operational work, and improving usage of resources. The projects’ estimated cost will be BD46,050 and it is planned to go live by February 2014.

In keeping with the recommendations of the Third National Telecommunications Plan (3rd NTP), the TRA commenced the licence award process for Post 3G mobile services in early 2013, and by Q1 2013, both Batelco and Zain had launched their commercial Long-Term Evolution (LTE) services. In September 2013, LTE frequencies were awarded to the current three mobile operators, which will enable Post 3G technologies and services such as LTE and LTE Advanced.

Simultaneously, TRA started the national spectrum review to determine the Kingdom’s public mobile spectrum needs for 2020 and beyond, and secure the future provision of advanced communications services. The outcome of the review is expected to be announced during 2015.

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A communications environment that enriches 1 Inspiring: Values Our imagination, clarity of thought the social and commercial and clear leadership stimulates innovative thinking that meets the 02 fabric of the Kingdom needs of tomorrow. of Bahrain using the 2 Committed: Authority’s FOCUSED Our drive and determination to achieve Vision excellence, our discipline in the Strategy framework. execution of our duties, our focus on the development of our team, and our sense of responsibility instill passion for the development of the Kingdom of Bahrain.

3 Respectful: 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.

4 Balanced: Our evidence-based approach to Mission decision making and our adaptability ensure that we remain proportionate, To foster a competition-led market for the provision of consistent, fair and just. innovative communications services, available to all, which: encourages sustainable, economically efficient 5 Transparent: investment; respects the interests of consumers; fosters Our open and inclusive approach to ecologically friendly initiatives; and supports the social regulation ensures that we are held and commercial welfare of the Kingdom of Bahrain. responsible and our actions and To continue to build as an exemplar regulator within decisions are understood. the region through thought leadership and to be the employer of choice by: investing in our people to develop a professional, passionate team; maintain transparency and fairness in operations; and adhere to quality assurance.

Annual Report 2013 9 10 03 Board of Directors 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. At the end of 2013, the members of TRA’s Board were as follows:

Dr Ahmed Mohammed Ahmed Al Amer Chairman

Shaikh Hamed bin Mohammed Al Khalifa Board Member

Mr Tareq Abdul Jalil Al Saffar Board Member

Colonel Riyadh Eid Abdulla Mr Isa Abdulrahman Board Member Board Member Annual Report 2013 11 12 04 Executive Management TRA Organisational Structure at the end of 2013

Telecommunications Regulatory Authority of the Kingdom of Bahrain

TRA was established by Legislative Decree No.48 of 2002 promulgating the Telecommunications Law. Its duties Mohamed bin Hamad Bubashait and powers include protecting the interests of subscribers General Director 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 Sh. Nasser bin Faisal Ali Al Jalahma Mohammed Al Noaimi Ahmed Al Absi Mohammed Al Khalifa Director of Finance and Acting Director of Acting Director of Director, Mr Mohamed Hamad Bubashait, is responsible for the Deputy General Director Administration Technical and Operations Legal Affairs 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.

Taiba Al Bin Ali Stephen Hudson Mohammed Nasser Ali Basil Habib Al-Arrayed Acting Director of Media Acting Director of Market Chief Internal Auditor Head of Corporate and Consumer Affairs and Competition Branding

Annual Report 2013 13 14 05 Chairman’s Statement By the end of the last year, the Authority had managed to secure Bahrain’s position as innovative telecoms hub on a global scale. Dr Mohammed Ahmed Al Amer, TRA’s Board Chairman, evaluates our activities and achievements of 2013.

Welcome to the eleventh Annual Report of TRA – consumers’ best interest, we were able to achieve high the Telecommunications Regulatory Authority of the penetration of mobile and broadband services through Kingdom of Bahrain. increased competition and introduction of state-of-the- art technology, including Long Term Evolution (LTE) In 2013, we made innovation our focal point and I am deployment. pleased to see the remarkable results our operations have brought, once again proving successful in ensuring For this continued success, full credit goes to the dynamic telecoms sector in the Kingdom. professional and dedicated work culture practiced by TRA team, led by the General Director Mr Mohamed bin Having previously reached our primary goals of Hamad Bubashait. establishing strong and competitive market, we were able to give our undivided attention to facilitating As part of respecting the guidelines of the Third National TRA constantly encourages innovative technological enhancement, and delivering the latest Telecommunications Plan, we continue to outperform services – both of which are essential for Bahrain’s ourselves in all our projects and initiatives with the solutions among telecom operators. sound telecoms infrastructure and prosperous economy collective aim of securing the Kingdom’s prosperous as a whole. future as regional and international trendsetter in Guided by a Focused Strategy Framework, telecommunications sector. The outlook of global telecoms sector has changed we work as a team with our stakeholders tremendously in the past few years, and Bahrain has

been keeping up with the international standards as one in order to offer the highest quality and of the most progressive markets in the field, with TRA’s technologically advanced telecom services. efforts playing key role in achieving this position. Dr Mohammed Ahmed Al Amer Today’s citizens of Bahrain are well-informed and keen Chairman users of modern-day telecoms technologies, setting the bar high for the Authority and local operators. Given that TRA has always put the highest priority on

Annual Report 2013 15 16 06 Committed to Excellence In order to achieve and sustain excellence, TRA implemented the European Foundation for Quality Management (EFQM) Excellence Model, which enabled precise assessment of the regulator’s operations, measure delivery against strategic goals, bring consistency to management style, and drive innovation.

EFQM, founded in October 1989, had set up a team of experts from industry and academia to develop the EFQM Excellence Model, a holistic framework that can be applied to any organisation, regardless of size or sector.

Towards the end of 2013, TRA was in the final stages of finalising its submission to EFQM to be Implementation of EFQM Excellence Model recognised as Committed to Excellence, with three successful projects having been identified, including TRA Support Systems, Media & Communication Project, and TRA’s Strategy Management Framework. Starting Out On the Way Advanced With the aim to continue the journey of excellence in its work and culture, TRA conducted two sets of training for its senior staff in 2013, namely Journey to Excellence and Leader for Excellence, in addition to active participation in Bahrain Excellence Programme, which promotes the highest standards of Committed to Recognised to government performance. Recognition EEA Applicant Excellence Excellence The regulator is fully committed to incorporating the EFQM Excellence Model into the DNA of all its projects and initiatives, which has been made possible through the collective efforts and dedication of the is in progress

TRA’s submission Sharing TRA’s outstanding cadres. Learn from others Benchmarking Share Good Practice

Assessment Simple Self- Business Excellence Full Assessment Tools Assessment Tools Matrix Completed Training Journey towards Leaders for EFQM Assessor Excellence Excellence Training

Increasing Maturity

Annual Report 2013 17 18 07 General Director’s Statement Mr Mohamed bin Hamad Bubashait, General Director, sums up our projects and accomplishments finalised during 2013.

As I look back at our last year’s operations, I can On the consumer level, the year 2013 was the confidently say the TRA’s strategy together with year of state-of-the art technologies, such as Long Bahrain’s open economy policy have resulted in the Term Evolution (LTE), with spectrum needed for the Kingdom’s firm position as innovative telecoms hub, provisioning of Post 3G services being granted to the which was our main objective for 2013. three mobile operators. On December 9, 2013, I had a pleasure to officially hand new frequency licences to the As a result of systematic compliance with the FOCUSED CEO›s of Batelco, Zain and Viva at TRA Headquarters. Strategy Framework, we were fully capable of shaping the Kingdom’s telecommunications sector into a viable Throughout the year, TRA had focused its efforts on and progressive market. providing the consumers with telecoms services of international standards and I believe we did succeed, TRA’s overall success is evident through the current with six communication platforms, effective online safety strong status of the Kingdom’s telecoms infrastructure, campaigns, excellent pricing regulations, and impressive TRA’s overall success is evident through with competitive market and the latest technologies technological evolution. widely available to Bahrain’s well-informed consumers. the current strong status of the In the upcoming year 2014, TRA will continue its active Our extraordinary achievements wouldn’t be possible participation in national and international events, and Kingdom’s telecoms infrastructure, without the TRA’s unmatched cadres, whose dedication carry on educating and empowering the consumers, and work ethics need to be acknowledged as they which can be achieved through three key objectives: with competitive market and the consistently applied the European Foundation for Quality consumer protection, consumer empowerment, and Management (EFQM) Excellence Model, which has now efficient and effective consumer support. latest technologies widely available to become an integral part of our daily routine.

Bahrain’s well-informed consumers. Our endeavors did not go unnoticed, both internationally and regionally; among others, we were honoured with a prestigious CommsMEA Best Regulator of the Year 2013 award, and that for a fourth time in a row. With this Mohamed Hamad Bubashait in mind, we will continue to develop our staff through a variety of training courses and on-the-job experience to General Director ensure such outstanding performance in the future.

Annual Report 2013 19 20 08 Post 3G Technologies Bringing 21st century telecommunications to Bahrain’s citizens and consumers.

TRA believes that introduction of state-of-the-art technologies such as Long Term Evolution (LTE) into the market will encourage investor confidence in the country’s telecommunications infrastructure, which in turn is good for the citizen, good for the consumer, and good for the Kingdom.

Following the action item of the Third National Telecommunications Plan (3rd NTP) related to introducing Post 3G technologies and services, as well as LTE the process initiated by TRA in 2012 on the same, the Authority allocated the 4G necessary spectrum to the holders of IMTL licences in September 2013. The In September 2013 additional spectrum enabled mobile operators to provide or enhance Post 3G Long Term Evolution technologies and services such as LTE and LTE Advanced, as well as helped (LTE) frequencies were them resolve number of issues related to the quality of services and capacity. awarded to Batelco, The process used for assigning the additional spectrum was a managed Zain and VIVA. transparent process amongst the three existing mobile operators in Bahrain. Batelco, Zain and VIVA were invited to respond to a consultation document, which set out TRA’s proposals for the award of rights to any or all of the existing IMTL holders, to use frequencies available in the 900MHz, 1800MHz and 2100MHz bands to promote current technologies and the provision of LTE services in the Kingdom.

Although this was not the optimal assignment mechanism, however spectrum needed by the three mobile operators for the provisioning of Post 3G technologies and services were granted. Consequently, on December 9, 2013, TRA’s Chairman Dr Mohammed Al Amer handed new frequency licences to the CEOs of Batelco, Zain and VIVA at TRA Headquarters.

Consumers and citizens could benefit immediately from the additional release of prime spectrum used by handset providers for the provision of mobile LTE services, whilst national fixed wireless consumers were able to experience the benefits of LTE technology in terms of quality and speed in a fixed or nomadic environment providing an additional layer of competition.

Furthermore, TRA closely monitors the roll-out and demand for LTE in the Kingdom to determine if and when additional frequencies should be offered to the sector. Annual Report 2013 21 22 09 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: FFOCUSEDOCU S ED Foster Competition – Optimised Technologies – Consumer Empowerment Ubiquitous Broadband – Security and Cyber Safety Efficient Regulator – Dynamic and Effective Regulatory Initiatives and effective Initiatives that encourage – Initiatives that provide Initiatives undertaken to – Initiatives that support Initiatives that adapt, Framework – Initiatives undertaken regulation that foster the adoption, deployment, knowledge and tools to ensure that broadband a safe and secure enhance, and update the to adapt regulations over time, the continued growth and optimisation of the latest empower the consumers services of high quality telecommunications framework, processes with the aim of continuously and development of the technologies that support and enrich their experience and competitive prices infrastructure to deliver and tools used by reviewing, updating, and telecommunication sector the growth of the market of the Telecommunications are available to all local highly reliable Electronic the Authority in the improving the telecommunication by way of effective and fair and deliver higher quality of services and to allow them stakeholders. Communication Services. implementation of its regulatory framework, and competition. services to consumers. to make well-informed duties. maintaining proportionate focus decisions. where necessary.

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The total single operator site count in Bahrain is 1,177 and multi operator 10 1,177 site count is 48. The TRA led a project concerning multi operator sites with a sharing is extending joint working among the feasibility of mast sharing with ratio of two per cent. The Northern current licensed operators with licensed operators to determine governorate has 302 single operator a commitment of increasing the The Mast the best option for evolving the sites and 14 multi operator sites sharing of masts from currently four current individual deployment of with a sharing ratio of four per cent. per cent to 15-20 per cent in the telecommunications masts and The central governorate has 261 coming 18 months. Once the option towers into a more consolidated single operator sites and eight multi is proved successful a joint venture sharing module. The recommended operator sites with a sharing ratio between two or more of the licensed Evolution Study option should assist the operators of three per cent. The Muharraq operators can be considered for the in reducing operators’ capital and governorate has 180 single operator next 18 to 24 months and new sites operating expenditures, and at the sites and four multi operator sites can be used. The greater the level Bahrain is following world trend and same time alleviate the concerns of with a sharing ratio of two per cent. of cooperation is between operators international bandwidth requirements the public and planning authorities The southern governorate has 106 in a JV, the greater the scope of about the environmental and single operator sites and 15 multi sharing masts and towers (around are rocketing, driven by contents-based perceived health impact of the operator sites with a sharing ratio 27-37 per cent). A second joint data and video. However the Kingdom’s unnecessary replication of masts of 12 per cent. The unattributed venture, using new and existing sites and towers. The feasibility study offshore has two single operator can be considered from 24 to 36 connectivity is adapting continuously compared three different business sites. The total single operator site months onwards. with new routes and increased capacity. modules for sharing that include count is 1,177 and multi operator Extend Joint Working, Joint Venture site count is 48 with a sharing ratio Alternative Scenario The number of international routes has and Tower Operating Company. of 3.9 per cent. An alternative scenario was increased since 2003 and satellite has prepared for where a tower site by an independent company can been dropped for terrestrial links. The Sites in Bahrain & Conclusion of the Study be used. A second alternative available capacity increased from 22 Gbps Sharing Ratio Recommended Scenario scenario was prepared for where The study concluded that the a government owned (natural The capital governorate has 326 to 290 Gbps (from 2009 to 2012) and used more feasible option to start with monopoly) tower site can be used. international capacity increased from ten single operator sites and seven Gbps in 2008 to 74 Gbps in July 2013.

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11 20 11 201 20 14 20 4 pacity Purch pacity Purch tal Ca ased tal Ca ased To To 0 ,488 11, 0 142 2 1 7 751 2 1 97 0 0 9 1 0 0 21 1 2 ,69 7, 1 2 0 7 5 4 le Capacity (G 7 5 4 ble Capacity ( ilab bps 92 aila Gbp va ) Av s) A 62 14 290 3 9,4 ,587 90 0 9 2 2 2 36 6 9 5 1 2 ,8 04 ,6 5 6 0 2 , 9 , 2 5 2 6 4 5 1 5 0 Canton Tower 9 2 2 9 0 2 9 1 0 5 3 0 0 6 4 0 9 , 1 5 0 7 ,0 5 0 4 China 6 6 3 6 6 0 2 2 5 8 8 9 , 3 0 2 1 5 4 1 2 6 4 , 7 2 7 0

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March May June • TRA releases its final • TRA chairs the second Working • TRA holds the annual medical decision in relation to its Group of the fifth World Tele- check for all staff in collabora- review of competition in communications / ICT Policy tion with the University Med- the wholesale markets Forum (WTPF), held by ITU ical Center of King Abdullah for international services, in Geneva. Medical City. 11 which is an important step in ensuring that • Delegation from the Rwanda • Anger Management workshop regulatory intervention Utilities Regulatory Agency visits is held for TRA staff. only focuses on markets Bahrain to review TRA’s leading Highlights in which there is experience in quality of fixed • Based on increase in the dominance or market broadband services. number of complaints related power. to consumers’ perception that • TRA represents Bahrain at voice quality has diminished, • TRA sets the rate the 11th meeting of the Arab TRA conducts an audit to of return applicable Regulators’ Network (AREG- assess the quality of services. to regulated NET) in Rabat, Morocco, where telecommunications it delivers a presentation on the • Represented by the General 2013 services in Bahrain at Arab retail price benchmarking Director, TRA successfully February 9.5 per cent. study, conducted by TRA. chairs the fifth meeting of the Steering Committee for Tele- • An official delegation of the • TRA’s study reveals that • TRA issues dominance designa- communications and Informa- National Telecommunications fixed broadband prices in tion for termination services on tion Technology of the GCC Corporation of the Republic of Bahrain have fallen by up VIVA’s mobile network. General Secretariat. Sudan visits TRA to exchange to 53 per cent between and share experiences in the 2011 and 2012, while • Senior staff members of TRA • TRA issues its final Three-Year telecommunications sector. mobile prices have fallen April receive training on the EFQM Work Plan for 2013 – 2015, by up to 30 per cent. Excellence Model – Journey to which sets out the regulator’s • TRA issues cost capital final • Bahrain is selected to host Excellence. priorities for the coming determination, dominance • TRA issues report on the Global Symposium for three years. designation for termination price benchmarking of Regulators 2014 • TRA holds the first staff forum services on individual mobile telecommunications (GSR-14). for 2013. • TRA issues guidelines for the networks, and dominance services in the Arab setting of the fine amount for determination for wholesale countries, which positions • In line with its commit- violations of Articles 35 and 65 international services. Bahrain generally well. ment to transparency and of the Telecommunications law January fairness in all its opera- of the Bahrain. tions and procedures, • TRA issues the consumer protection TRA confirms that both guidelines, consisting of three key of its court cases against issues: consumer rights, choices Menatelecom, in relation to for consumers, and communication participation in the 4G LTE with consumers. Broadband auction, are suspended. • TRA attends Online Child Protection Conference in Muscat, and Cyber • TRA delivers a presenta- Security and Safety Conference in tion on Bahrain’s expe- Amman. rience with broadband quality of service, at ITU’s • Representatives of licensed Quality of Service Devel- telecommunications operators opment Group meeting in attend TRA’s annual review meeting, Mozambique. to discuss its strategic work plan for 2014 to develop further competition, protect the interests of consumers and address the technological changes.

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October November December • TRA completes its budget • TRA releases its draft decision • @ask_TRA Twitter account is plan for 2014. in relation to competition in the officially launched. retail and wholesale markets for • ITU refers to Bahrain as broadband services in Bahrain, • TRA holds a workshop on one of the most dynamic removing current regulatory competition law and new trends countries, based on their obligations from Batelco. in the telecommunications sector. fifth edition of the Measuring the Information Society (MIS) • TRA holds a Balanced • For the fourth time, TRA is report, according to which Scorecard staff training, which announced as Best Regulator of Bahrain ranks 11th out of aims at developing necessary the Year, in the eighth edition of 110 countries in mobile skills in order to achieve CommsMEA Awards. broadband affordability, with TRA’s vision. eighth highest increase in ICT • TRA’s Chairman hands new Development Index (IDI) value • A workshop on IPv6 protocol frequency licenses to Batelco, during 2012. Bahrain’s IDI is organised in cooperation Zain and VIVA. also ranked third in the Arab with Middle East Operators region and 39th globally. Group (MENOG) and Reseaux • In partnership with the Royal July August September IP Europeans (RIPE) NCC, Charity Organisation, TRA • TRA hosts the Regional delivered to internet service celebrates the Kingdom’s • TRA represents Bahrain at Global • TRA issues an order against • TRA’s SafeSurf media Development Forum (RDF) providers and engineers to National Day and the 14th Symposium for Regulators (GSR- VIVA, under Article 35 of the campaign is officially and Regional Preparatory facilitate the deployment of Accession Anniversary of His 13), held in Warsaw, Poland. Telecommunications Law, launched. concerning the operator’s Meeting (RPM) for the IP version. Majesty the King Hamad bin Isa Arab Region. Al Khalifa. • An online consumer survey is non-compliance with various • Long Term Evolution (LTE) • TRA sponsors the Global launched on TRA’s website, in a conditions. frequencies are awarded to • In a move to achieve Mobility Innovation. • TRA takes part in Bahrain move to gauge overall consumer Batelco, Zain, and VIVA, in transparency in its operations International Technology satisfaction of telecom services • The winners of Online relation to the introduction and processes, TRA issues • TRA members attend Follow Exhibition (BITEX). and service providers, applicants of Consumer Survey are of Post 3G technologies a public consultation on Up Meeting for Connect Arab which can win one for four iPad announced. and services. mini devices. the potential regulation Summit Outcomes in Tunis. • Dr Mohammed Al Amer is of wholesale international elected Chairman of the ITU’s • TRA releases its eighth inbound calls. • TRA issues its First Quarterly RPM coordination meeting in • TRA staff members attend their report on key market Market Indicators Report, which Geneva, in view of the World annual Ghabgha gathering. indicators and trends, • TRA hosts the first meeting includes key statistics as of Telecommunication Development summarising progress in of the ITU’s Regional Group Q3 2013. Conference 2014 (WTDC-14). the market up to the Q3 for the Arab Region. of 2013.

2013 was a successful • TRA hosts ITU’s Regional and productive year Workshop on New Trends for Building and Financing for TRA on many Broadband. fronts. The Authority • Senior staff members of maintained its TRA receive training on the EFQM Excellence Model – position as leading Leader for Excellence. organisation in telecoms sector and it is fully committed to continue along its path of excellence.

Annual Report 2013 29 30 12 Awards and Recognition TRA’s outstanding level of commitment towards promoting and developing a modern competitive telecommunications market was highly recognised, both internationally and regionally.

Awards • For the fourth time in a row, TRA proudly accepted the CommsMEA Best Regulator of the Year 2013 award.

International Recognition As part of TRA’s efforts to take on greater responsibilities and put the Kingdom of Bahrain on a map as a regional and international leader in the telecommunications sector, the regulator hosted a number of regional ITU events, and TRA personnel were elected as prominent representatives in key ITU events and committees:

• TRA Chairman was elected the Chairman of the Arab RPM. • TRA General Director was elected the Chairman of the Arab RDF, and the GCC’s fifth meeting of the Steering Committee for Telecommunications and Information Technology. Reaching for the skies: • Mr Musab Abdulla, TRA Manager - Strategy & PMO, was elected the Chairman of the Working Group 2 for the World Telecommunications Policy Forum 2013 (WTPM-13), and a Vice Chairman of the Review Committee under Driving Continuous Improvement ITU-T Sector. • Mr Adel Darwish, TRA Manager of Market & Competition, was elected the Vice There is a fine line that divides the good and the Chairman of the Regional Group for the Arab Region (SG3 RG-ARB). • TRA hosted the first meeting of the ITU-T SG3 Regional Group for the Arab best. Despite TRA’s regional and global successes, the Region (SG3 RG-ARB). Authority will not rest on its laurels and shall continue • Kingdom of Bahrain was selected by the ITU to host the next Global Symposium for Regulators 2014 (GSR-14). to raise its own bar with every next project.

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2013, Zain launched commercial to complete a request within eight September 2013, LTE frequencies LTE services to its business business hours, which was earlier were awarded to the current three customers. Batelco is the only set at 48 hours. The processing time mobile service operators enabling operator with a nationwide telecom for a fixed number portability request them to provide/enhance post 3G infrastructure. Menatelecom and has also been slashed from 72 technologies and services such Zain implemented WiMAX. Nuetel hours to eight but can be extended as LTE and LTE Advanced. The is the only operator to deploy a full for another eight business hours in additional spectrum helped mobile fibre-based network across a limited case the provider faces technical operators to resolve issues related 13 but captive area in Amwaj Islands. difficulties. to the quality of services and capacity. Number Portability Services Fixed Telephony Services In 2013, BD907,268 was generated Fixed wireless services as a National Fixed Wireless from number portability, a hike proportion of total fixed lines have Services Consumer from BD844,396 in 2012. A total of increased from less than one In January 2007, the TRA awarded 125,684 mobile number portability per cent in 2007 to 27 per cent in two National Fixed Wireless Services requests have been processed 2011 and 35 per cent in Q2 2013 (NFWS) licenses to Menatelecom since the facility was first introduced owing to good service offerings and Zain Bahrain. Menatelecom Focus in 2011. Bahrain is the first in the by Menatelecom and Zain. All and Zain Bahrain are using WiMAX Middle East and North Africa to fixed telephony Voice traffic in the technology to provide NFWS introduce Fixed Number Portability. Kingdom is carried over IP. services in Bahrain. Menatelecom Six communication platforms, successful online safety campaigns, excellent A total of 61,792 mobile numbers and Zain Bahrain are in process of pricing regulations and tremendous technological evolution are what sum were ported and the figure for Mobile Services evolving to LTE technology in the Fixed Numbering Porting came At the end of Q2 2013 there same bands. up the TRA’s efforts towards offering consumers telecommunication services up to 1,210. According to revised were about 2.25 million mobile of international standards. In 2014, the TRA continues to work towards regulations issued by the TRA, subscribers in Bahrain i.e. 182 service providers are legally bound per cent mobile penetration. In creating an enlightened and empowered consumer base.

Competitive & Affordable (ITU) latest report titled “The Pricing ITU Measuring the Information Based on the latest report Society”, Bahrain achieved the titled “Price Benchmarking of eighth highest increase in the ICT Telecommunications Service (Information & Communication in the Arab Countries” issued Technology) Development Index by the TRA Bahrain generally value during 2012, with the ITU compares well with GCC and referring to Bahrain as one of the Arab countries across a range most dynamic countries. Bahrain’s of telecommunications services. IDI (ICT Development Index) also No.1 Bahrain is the first in Bahrain is better than most Arab ranked third in the Arab region in the MENA to introduce countries when it comes to mobile 2012 and ranked 39th globally. Fixed Number low usage prices, and better than most GCC and Arab countries Technological Evolution & Portability. when it comes to mobile high Development usage prices. Bahrain is also In December 2007, Zain launched mentioned favorably in relation to the world’s first nation-wide the pricing of mobile broadband WiMax network. In 2008, Batelco services. Bahrain ranked 11th out deployed the first nation-wide of 110 countries in terms of mobile NGN network. In 2011, Bahrain broadband affordability. became the first Gulf country mandating local loop unbundling. In 2012, Batelco started GPON Global Telecommunication access network trials. In January, Services Standards 2012 Viva started 4G / LTE trials. As per the International In Q1 2013, Batelco launched Telecommunication Union’s commercial LTE services. In Q1

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Market & Competition Initiatives The TRA has taken many market The bottom-up project initiated by Determination of significant market and competition oriented initiatives the TRA was completed in 2013. power and dominant position for which have benefited consumers ‘Bottom-up’ models use engineering domestic data connectivity services, and supported telecom service rules combined with detailed as well as coming to a conclusion providers. 2013 witnessed Phase 2 costing and operational data to by the TRA that Batelco or no other of the International Roaming Tariffs build efficient telecommunications operator has a dominant position in the GCC initiative. According networks, thereby identifying all in the market was a good step to to this initiative consumers enjoy components of the networks ensure competitive pricing which reduced tariffs on international necessary to produce the required helps consumers. calls made to GCC countries while services. This approach contrasts roaming within the GCC. with ‘top-down’ models which A constant review of telecom instead derive the cost of services operators’ services and working, The 2013 report on Price based on operators’ historical as well as a consistent regulation Benchmarking of accounting information. Bottom-up by the TRA ensure that the Telecommunications Service models allow more transparency telecommunication sector in Bahrain in the Arab Countries issued and better reflect the economic cost operates smoothly. by the TRA Bahrain, compared of services. Bahrain to other GCC, Arab and OECD countries across a range A broadband market review was of telecommunications services. initiated by the TRA in 2013. Now, Bahrain ranked better than most fixed broadband services are GCC, Arab and OECD countries on delivered via multiple competing various telecommunication fronts. technologies. 2013 2012  Phase 2 of the international roaming tariffs in the GCC  2013 report - Price 2011 Benchmarking of  International Roaming Telecommunications Service Tariffis decision at the in the Arab Countries GCC level  Completion of bottom-up  Issuance of the telecoms  Implementation of the project international roaming market indicators for  Commencement of the tariffs in all GCC countries 2011 Broadband Market Review  Issuance of the telecoms  Issuance of  Deciding that Batelco is the fourth market indicators for 2012 not dominant in wholesale annual study markets for international “Telecommunications  Determination of a Relay services Retail Prices Operator (RO) Reaching for the skies:  Review of Batelco as Relay Benchmarking Report for  Determination of Operator Arab Countries” significant market power  Local Loop Unbundling and dominant position  Review of Zain Bahrain as which allows multiple for domestic data an operator for Reference Consumer Satisfaction operators to use connectivity services Interconnection Offer connections which  Regulation of International  Batelco’s APM enhances competition Inbound Calls for 2011 TRA’s initiatives towards consumer welfare span  Development of Bottom-  Batelco lowers its tariffs approved improved interaction through better developed up Cost model for Fixed for internet and other  Zain’s and Mobile services services APM for social media ideas and other online projects  Cost of Capital fixed at 2011 9.5 per cent and 2012 approved and surveys.

Annual Report 2013 35 36

Consumer Satisfaction Overview

The TRA launched an online by TRA to communicate with identified: consumer protection, consumer survey on its website, consumers. The TRA, in 2013 consumer empowerment, and in July 2013, to gauge overall has six communications channels efficient and effective consumer consumer satisfaction of telecom including Twitter, their CRM, their support, which are built into TRA’s services and service providers. Call Centre, email, fax, and their work for 2014. The values to be Bahrain’s residents were invited help desk. It is an improvement from achieved in 2014 are developed to take part in the survey and 2008 when TRA had only economy and society, consumer applicants were automatically three channels. welfare, sound consumer entered into a raffle, to win four iPad environment, and increased mini devices. TRA has also set a new KPI in 2013 productivity and efficiency. You for resolving consumers complaints Tube is another medium and The TRA’s Twitter account at 23 days. This is an improvement communication channel that the “@ask_TRA” was launched to serve over the 43 days in 2012. TRA intends to use this year to and interact with consumers in The TRA set the cost of capital interact and communicate with Bahrain. The account regularly for regulated telecommunications consumers. The TRA’s key projects updates information about services at 9.5 per cent. The for 2014 are a TRA’s e-book app, consumer rights and issues of cost of capital is an important TRA’s new website, TRA’s e-News interest, as well as serves as a parameter that affects the cost Letter, and the 2013 and 2014 digital platform to compliment base of operators and ultimately annual report and sponsoring policy. the consumer service hotline. the price paid by consumers for In addition to bridging the gap telecommunications services, in The TRA will continue its work and between consumers and the TRA, Bahrain. campaign on internet safety and it is in line with the government’s child projection online. It also aims vision to accelerate the resolution A well enlightened and empowered to increase awareness, as well as of consumer concerns. In addition consumer is TRA’s vision for 2014. educate individuals. to the above, an Instagram account To achieve the above vision, three has been created, which is used key strategic objectives have been

2011 2012 2013  TRA launched an online Market Survey TRA’s residential survey consumer survey and four  Result showed consumers are Over three-quarters of consumers winners were gifted iPads seeking the best deals as a are satisfied with the service priority  TRA commenced its work on consumer survey project for  Consumers are satisfied with the TRA’s business survey Increase in usage of fixed and 2013-2014 and results expected service they are getting - a rise mobile services as well as a to be published in 2014 of over 30 per cent for both reduction in average expenditure Customer Satisfaction mobile and international serivces

 Consumer protection  TRA used Gulf Cooperation  Handling complaints received  Bulk SMS regulation Council (GCC) on Consumer by all means - call center, CRM Protection Day in March 2012 and directly received by TRA  Customer Relationship to reinforce the advice in the (online, telephone, email, fax Management System in place Consumer Guide and in-person)  More resources to handle  Launch of online consumer  KPIs to handle consumer consumer complaints

Consumer Affairs complaints and inquiry service complaints changed to improve service

 New number for call center  Publication of TRA’s 2011  TRA officially launches a 81188 Annual Report second Twitter account  TRA set up its own Twitter @ask_tra to improve interaction account with consumers Media  TRA sets up Instagram account  Publication of TRA’s 2012 Annual Report Annual Report 2013 37 38

social media – including BlackBerry launched not only for Bahrainis Latest Developments: Messenger, Facebook and Twitter but for a global audience. – to stop posting or spreading Safesurf.bh is a sociological drive 2013 messages that were untrue, violent where parents will be able to share Last year saw the internal and press or pornographic. The team urged stories and communicate together launch of the Safe Surf campaign. consumers to think twice before to find solutions. Outdoor media campaigns were passing on second-hand information also held and the TRA participated that is not based on facts, cannot Having participated in many in radio and television interviews 14 be proved and could be damaging. international events, the TRA to create and spread awareness highlighted its commitment and across media. Safe Surf was also The TRA started working on the dedication to internet safety launched through a media campaign interactive tutorial in 2012. The and shared its knowledge and via Google’s network. tutorial addresses internet safety experiences globally. Safer Internet The Safe Surf issues and enlightens readers with Day was observed in Bahrain, in stories of cyber crime victims, tips February, encouraged by the TRA on dealing with cyber crime and who issued tips against cyber other related questions. It is available bullying for both children and Campaign in five languages. parents. Safer Internet Day will be celebrated next on 10th Last year, the TRA registered a rise February 2015. In 2013, the TRA further enhanced its media campaign, “Safe in cyber bullying, in schools across Bahrain. 43 per cent of teenagers, Surf” with a dedicated website. Offering an interactive tutorial aged between 14 and 18, were said on internet safety, in five languages, safesurf.bh is popular with to be putting their lives at risk by th Internet users in Bahrain and globally. going out with strangers they met online. The Safe Surf campaign was FEB 2015 10Safer Internet Day will Safe Surf, the TRA’s consumer Campaign Overview: website called ‘Little Gossip’ that be celebrated next on campaign to promote online safety was not moderated and being used 10th February 2015. was launched in 2010 following a 2011 & 2012 maliciously to post anonymous groundbreaking conference at which At the beginning of 2011, the sexual and racially abusive slurs. The all nine of the Kingdom’s Internet TRA published its first Safe Surf Safe Surf Bahrain team took action Service Providers (ISPs) signed up newsletter addressing issues and blocked access to this site from to a Memorandum of Understanding including cyber bullying and online within the Kingdom of Bahrain and (MOU). The campaign was further abuse. The aim was to encourage took up the issue with the site’s web boosted by a major consumer study students, parents and teachers hosting company in the USA. highlighting the key issues that the to report any online abuse and Safe Surf Bahrain team needed to to support victims. The TRA was The second issue of the newsletter address. concerned in particular about a focused on encouraging users of Internet Safety 2010 - 2011 2012 2013

State of the national review of  Started working on interactive INTERNET SAFETY tutorial on internet safety in five languages safesurf ROAD MAP FOR THE FUTURE  Participated in international events for sharing knowledge  Internal and press launch SAFE SURF and experiences on “Safe Surf” campaign BAHRAIN  Celebrated “Safer Internet Day”  Outdoor media campaign  First Safe Surf newsletters  Six tips were issued for parents  Radio Bahrain interview and another six for children on on cyber bullying and online  BTV interview abuse cyber bullying  Sticker on LMC building  Second newsletter on using social media  Launch of media campaign via Google’s network Annual Report 2013 39 40

Trust TRA’s fair and transparent regulatory framework provides stability to Bahrain’s telecommunication industry which attracts investors. The subsequent increase in competition and innovation keeps Bahrain’s telecommunication industry at par with the best in the world.

Annual Report 2013 41 42

Fixed Broadband QoS Indicators During each quarter measurements are performed 24 hours a day, for each audited service. Results for a given hour are compiled into one set of measurements to determine the average QoS achieved during that hour, over the three-month period. The advantage of this method is that it shows trends over an audited period, as well as 15 variations during a 24-hour period. Other Fixed Broadband QoS Indicators Service supply time: The time to supply a service is the elapsed time (not the working time) from when a complete order is received Quality of to when the service is available for use by the end user. Account complaint rate: A complaint that an account, i.e. a 08hrs statement of money owed or paid, is inaccurate. The reported Services providers are percentage shows number of complaints, regardless of whether the required to complete Service complaint was justified. a request within Fault repair time: Time required for resolving a fault, measured The TRA considers protecting the interests of subscribers and as the elapse time (not the working time) from when the 8hrs, which was consumers to be one of the Authority’s primary duties and it fault is received to when the service has been restored. The earlier 48hrs. measurement includes all fault reports regardless of the root is fully dedicated to ensuring Bahrain’s telecommunications cause for the service disruption. industry performs at its level best.

This can be achieved through monitoring and Fixed Broadband Evolution Mobile Broadband Evolution equipment to fine tune particular technical aspects, collecting Quality of Service (QoS) indicators the TRA conducts audits of the mobile services through TRA’s Technical and Operations When aDSL and WiMax services replaced dialup service In respect of the latest technologies and services, the QoS from the end user’s perspective, using mobile Department (TOD), which gathers direct data in 2010, the shift in technology allowed for a sharp Kingdom of Bahrain is at the forefront of what current devices that are available in mobile operator shops, and Key Performance Indicators (KPI) from increase in service throughput. Dialup being limited to mobile technologies provide, including 2G, 3G, 3.5G, and measuring such elements as the behavior of the licensed operators and via independent audits. 56Kbps, xDSL technologies have increased the ceiling and 4G/LTE, with mobile operators continuously handset and the route to service platforms located up to 25 Mbps (aDSL2+), with WiMax technologies amending and upgrading services offered to end outside of the operators networks and the Kingdom Starting in 2008, the TRA has embarked providing comparable performance. However, the users. As opposed to approach taken by the of Bahrain. on a successful QoS campaign, on the evolution of consumer packages did not utilise the full operators, which use highly specialised technical assumption that “What can be measured can potential of these technologies, with a very gradual increase of packages above 2Mbps. be managed”, concentrating its QoS initiatives Service Platforms Service Platforms on two corresponding approaches – what operators provide, and what the Authority 17% measures. A particular focus is currently placed on the market’s evolution, especially in terms 73% More than 2 Mbps 2 Mbps Access of setting fixed broadband QoS trends, and a 1 Mbps Handsets recent explosion of mobile data services. 10% Less than 2 Mbps The TRA’s QoS Regulation, effective since Q1 2009, enforces an obligation on all licensed Core Internet operators to report on a number of indicators, which enables standardisation through clear definitions, provides visibility on performance 2008 43% for regulated services, and allows the Authority 33% to take required action towards operators. The TRA is now in process of reviewing the QoS 14% Network Regulation, with an objective to improve it and set QoS targets. Service The TRA regularly publishes reports on the 10% QoS of telecommunications services offered in Bahrain, with the latest being Fixed Broadband 2012 QoS for 2013. Annual Report 2013 43 44

Mobile Broadband QoS Indicators Throughput: The evolution of the average throughput, observed for the three mobile operators across the Kingdom. Referred to as Although no measurements of mobile broadband QoS trends were “speed of the service” by general public, throughput is a significant published in 2013, the TRA plan to conduct an audit and publish results element of the service characteristics. It is usually expressed in bits per by mid-2014.The following tables show the average combined results, second (bps), and measured separately to assess downlink and uplink achieved by the three mobile operators for all measurements, over the performance. period of three years, from 2010 to 2012.

FTP Upload FTP Download All networks Voice Service: All networks offered fair voice service within offered fair two minutes, with less than four per cent defects. SMS and Voice services within 3500 Internet min two minutes 3000 2 2500 in 2012. 2000 No.1 1500 TRA is announced as Best 1000 Regulator of the Year, 500 in the 8th edition of 2010 2012 0 2011Kbps 2012 2013 CommsMEA Awards. 96.6% 96.6%

SMS service: All networks offered fair SMS service within two minutes, with less than one per cent defects, and a significant average performance improvement over three consecutive years. The average Other Mobile Voice QoS Indicators observed SMS reception delay was eight seconds. Unsuccessful call setup: A call attempt to a valid number, properly dialed, where neither called party’s busy tone, nor ringing tone, nor answer signal is recognised on the access line within 30 seconds from the instant when the address information is received by the network.

1.40% 1.20% 2010 2012 1.00% 0.80% 99.2% 99.6% 0.60% 0.40% 0.20% 0.00% Data service: All networks offered fair data service, with less than one Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 per cent defects in successful connections, and less than six per cent 2011 2012 2013 defects in successful99.2% connections within ten seconds.

Unsuccessful call set-up mobile – fixed Unsuccessful call set-up mobile – mobile

2010 2012 98.8% 99.2% Annual Report 2013 45 46

Telecommunications Sector Revenues With a steady growth of the telecom sector revenues in the years 2006 through 2013, the average percentage of the sector’s contribution to GDP remained stable at three to four per cent. The estimated revenue for 2013 is BD423 million, compared to BD409 million in 2012.

Employees in the Telecoms Sector 16 About 3,000 employees were working in the telecoms sector in 2013, comparing to 3,141 in 2012, indicating 4.5 per cent decline.

Market Mobile Subscribers At the end of 2013, there were 2.21 million mobile subscriptions, showing a four per cent increase over 2012, with the penetration level Indicators at 173 per cent. 1.63m The total number of TRA had issued its eighth Telecommunications Market Indicators Report broadband subscriptions in September 2013, covering a wide range of telecom services indicators 4% reached 1.63 million up to Q4 2012 (and Q2 2013 in some cases), in addition to some bench- in 2013. marking against telecom services within the GCC countries.

The regulator also published its first quarterly market mobile services throughout Arab countries, in addition 2.12 million 2.21 million Broadband Subscribers indicators report in November 2013, showing Q3 to a Bahrain-specific report, which highlighted Bahrain’s by Access Type 2013 data, in order to ensure that key market indicator performance in terms of pricing benchmarked against Q4 Q4 Mobile broadband subscribers statistics are made available on a more timely and the GCC countries. The Authority has also updated the represented 89 per cent of total regular basis. Further quarterly market indicators reports retail price benchmarking study for the year 2013 and broadband subscribers at the end have been published for Q4 2013. The results of the is in the process of updating consumer surveys for 2012 2013 of 2013. retail price benchmarking study were also released 2013-2014. in March 2013, comparing retail prices for fixed and 11%

Broadband Subscribers by Access Type 3% 8% Mobile The broadband penetration level by the end of 2013 was 128 per cent, National fixed telephony while the number of broadband subscriptions reached 1.63 million. 39% Leased line A 30.5 per cent increase since 2012 was a result of growth in the Internet 37% International calls number of mobile broadband subscriptions. 89% Active Licenses 3 A total of 20 telecommunications operators in 13% Bahrain’s market were active in 2013. 10 30.5%

Subscriptions by access type at the end of 2013

Fixed broadband (11%) Mobile broadband (89%) 15 Fixed wired Pay-per-use Fixed wireless Standalone Active Add-on telecommu- nications operators in 1.25 million 1.63 million Bahrain in 2013. 12 20 14 2012 2013

Annual Report 2013 47 48

Fixed Lines Subscribers Fixed (Wired) Broadband Subscriptions At the end of 2013, there were 251,000 fixed-telephone subscriptions, compared Bahrain ranked first among the GCC countries in relation to the fixed (wired) to 261,000 in 2012.The number of fixed (wired) telephone lines has continued to broadband telephone subscription. decrease in recent quarters, while the number of fixed wireless fixed telephone lines (based on WiMax) has been increasing, although such growth has been slowing Fixed Lines Subscriptions during 2013. Bahrain positioned first among the GCC countries, in regard to the fixed telephone lines subscription.

261,000 251,000 Internet Users Bahrain is among the leading GCC countries in terms of the percentage of individuals using the Internet.

Mobile Subscriptions 3.8% The mobile subscriptions in Bahrain placed the Kingdom in the second position, comparing to the other GCC coutries. No.Bahrain ranked first1 among the GCC in fixed broadband 2012 2013 subcription. 2 USERS INTERNET Benchmarking of Telecoms Service Retail Prices Kuwait UAE Qatar with GCC Countries According to the TRA’s latest report on “Price Benchmarking of Telecommunications Service in the Arab Countries”, Bahrain generally compares well with GCC and Arab countries in terms of a KSA BAHRAIN Oman range of telecommunications services. BAHRAIN KSA Bahrain Results Compared to FIXED (WIRED) BROADBAND Qatar Oman GCC Averages Arab Averages OECD Averages 1 SUBSCRIPTIONS UAE Kuwait Low usage PSTN High usage BAHRAIN KSA Low usage UAE Kuwait FIXED LINES Mobile Qatar Oman SUBSCRIPTIONS 1 High usage UAE BAHRAIN Qatar

Fixed Low speed

Broadband KSA Oman Kuwait High speed MOBILE SUBSCRIPTIONS

Low usage 2 Mobile Broadband High usage Leased Lines Better than.... On par with More expensive than Annual Report 2013 49 50

Ultra Fast Broadband ecosystem facilities for all local economy and consequently make traffic exchanged. The TRA worked it more attractive to investors. The The Government wants to create a in consultation with concerned TRA assessed and improved the fixed National Broadband Network agencies and authorities to assess Telecommunications Law. Effective (NBN), providing wholesale the present situation and publish strategies for competitive costing services to licensed operators on proposals for a strategy that may were put in place. An eTRA strategy a non-discriminatory basis. The optimise the efficiency of the was also implemented and ISO TRA worked in tandem with the ecosystem. Building Industry Cross- audits and certifications were put in 17 government to develop a broad connect (BIX) is required to ensure place. band policy, to set up a fixed NBN. that the facilities of the exchange NBN was principally constructed are made available and attractive to using fibre-optic cable and well all licensed service providers. They Regulatory Authority managed to ensure reliability of are required to coordinate with other A Telecoms Committee was set The Third National service and security as per the licensed operators for domestic IP up to oversee the implementation Government’s standards and traffic to maintain national IP traffic of plans and a National Telecom requirements. The broadband within the Kingdom. Policy Advisory Committee was specifications for domestic and established. A dynamic regulatory business consumers were also set framework was put in place. Telecommunications appropriately. Effective Competition Regulatory frameworks were also The Government requires that put in place including a transparent Internet Ecosystem actions should be supported by a and independent framework regulatory, institutional and legal and revised and improved Plan The Government aims to framework to enhance Bahrain’s Telecommunications Law. encourage the use of Bahrain’s competitive scenario in the global The TRA started work to implement the country’s third National Telecommunications Plan in July 2012. The plan, which covers the three years to 2015, includes provisions for more high speed broadband for businesses and consumers, and better and cheaper international connectivity as well as measures to prevent misuse of communications and protect critical infrastructure.

The Government’s vision in the and spectrum award process were Third National Telecommunications completed in 2013. Plan emphasises the importance of the telecommunications sector in enabling strong social and International Supply economic development in the The Government requires that the Kingdom of Bahrain. The plan supply of capacity on international features the following elements connectivity links are made 3% which cover its objectives and the available at competitive prices. The Increase in pre-paid actions taken to implement them, TRA conducted market reviews mobile services by the end of 2013. and ensured that international connectivity is accessed at more between 2012-13. competitive prices. It was also Mobile Services ensured that services provided The Government aims to efficiently were fair and reasonable. The provide LTE based services. TRA has determined that in a The National LTE spectrum number of markets – including plan was approved in 2012. the wholesale markets for the Necessary actions for the Public supply of international capacity Telecommunications Spectrum and international outbound call Release Plan and the National conveyance and termination – Frequency Plan were completed. there is no longer a dominant The band 2.6 was made available service provider. for telecommunications in 2012

Annual Report 2013 51 52

Digital Security Governance & The Government requires that Convergence measures must be introduced The Government requires that to improve the online safety should there be any financial of users. Government further intervention by Government to requires that plans are put in ensure the provision of telecoms place to respond and recover infrastructure, it is recognised from disasters, whether natural to give rise to some level of or man-made, that impact diversion of public resources to the national communications the potential benefit of suppliers infrastructure. The development of within the telecoms sector. The a comprehensive disaster recovery current Telecommunications Law response team was decided upon. was assessed and enhanced to Online tutorials and cyber safety address new technologies and policies were to be finalised and service convergence. Markets developed. Security risks and were well regulated to ensure mitigation guides were to be put in competitive prices, innovation, 7% place for business consumers. A Increase in investor attractiveness, overall safe surf campaign was launched consumer welfare, and telecom post-paid mobile in 2013 which included a website sector growth as a whole. services between and online safety DVD tutorial. 2012-13.

ELEMENT 7

ELEMENT 6

ELEMENT 5

ELEMENT 4

ELEMENT 3

ELEMENT 2 International Supply

ELEMENT 1 Mobile Services

Annual Report 2013 53 54

which international services are Menatelecom’s 4G LTE 474/2013 – Menatelecom vs. TRA supplied and that no other operator Participation Appeal to Stay the Auction process; and the held position of dominance. This Suspended execution of Public Order number 4, finding was an important step to The order which allowed both were in favor of Menatelecom. ensure that regulatory intervention Menatelecom to participate in the only focused on markets in which 4G LTE Broadband auction was World Telecommunications there is dominance or market held suspended by the TRA Bahrain. Policy Forum power. As a result Batelco is no Their appeal (No. 847/2013) to the The TRA represented the 18 longer obliged to offer wholesale Appeal Court was heard in the same Kingdom of Bahrain at the fifth international services on a regulated month and the court issued an order World Telecommunications/ICT basis. In reviewing competition in to suspend the execution of the Policy Forum (WTPF) held by the the relevant markets, TRA also took Urgent Matter Court injunction order International Telecommunication into account the arrival of a number to allow Menatelecom to participate Union (ITU) in Geneva and having Workshops & of competing international cables in the auction. the theme ‘International Internet- into Bahrain, as well as recent efforts related Public Policy Issues’. TRA by other licensed operators (OLOs) Commitment To Bahrain was invited to chair the to develop their own capacity using Transparency & Fairness second Working Group which Other Happenings fibre through the Kingdom of Saudi In line with the TRA’s commitment discussed ‘Supporting Capacity Arabia. An important element of to transparency and fairness in Building for the Deployment of TRA’s analysis was that the relevant all its operations and procedures, IPv6’ and ‘In Support of IPv6 The Telecommunication Regulatory Authority, Bahrain chaired a wholesale international markets are it suspended both of its cases in Adoption and Transition from IPv4’. number of meetings and participated in a number of conferences in an only competitive as long as OLOs Court against Menatelecom: The The working group was chaired are able to reach the landing points Urgent Matters Court decisions on by Musab Abdulla, Manager of attempt to represent Bahrain’s telecom sector and bring it at par globally. of these international cables, for Case 464/2013 - Menatelecom Strategy & PMO at TRA Bahrain. A number of initiatives were also taken to improve the quality of services example by accessing Batelco ducts vs. TRA to stay execution of Over 900 participants from 130 or domestic wholesale leased lines. countries attended the fifth World for consumers and to provide a regulated and thriving environment for Public Order number 4, and Case service operators in Bahrain.

Setting the Rate of Return price benchmarking study on Capital of telecommunications The TRA set the cost of capital services in Arab countries. for regulated telecommunications Commissioned by the TRA on services at 9.5 per cent. The behalf of AREGNET (the Arab cost of capital is an important Regulators’ Network), the study parameter that affects the cost compared the cost baskets of base of operators and ultimately telecommunications services for the price paid by consumers for different consumer profiles. It 80%At the end of 2013, telecommunications services, in also included comparisons with prepaid mobile Bahrain. It represents the return the Organisation of Economic subscriptions represented that investors are able to earn on Co-operation and Development 80 per cent of total capital employed in the provision (OECD) countries. Further, the of regulated telecommunications study helped in understanding mobile subscriptions. services, in Bahrain. In order to Bahrain’s performance in terms arrive at the current figure, the of developing a competition- TRA examined the changes that led market for the provision occurred since the last cost of of innovative communications capital was set in 2009, and took services, available to all. into account the international best practice, latest available Deregulation of Wholesale market information, regulatory International Services Supply precedents, and current economic The final decision of the TRA in environment. relation to its review of competition in the wholesale markets for Retail Price international services concluded Benchmarking Study that Batelco was not dominant The TRA released the retail in two wholesale markets, in Online Safety “SafeSurf” Campaign to Promote Child Safety Annual Report 2013 55 56

Telecommunications/ICT Policy of Licensing and Spectrum; and Anger Management Workshop the Post 3G Award process issued Working Group’s meeting. Talks Forum (WTPF) in Geneva, while Mr Saeed Ahmed Mashkoor, The TRA organised an anger at the end of January 2013. regarding GCC roaming rates were more than 3,000 people participated Telecommunications Market management workshop for its staff discussed with regulators and remotely via web broadcast. Analyst. Key issues were discussed where Dr Sharifa Swar, Counseling, Launch of Online operators across the Gulf. The including cloud computing in Arab Psychotherapy and Cognitive Consumer Survey project aimed at lowering voice Rwanda Delegation countries and how to stimulate its Behavior Specialist at Batelco The TRA launched an online call rates between GCC countries Visits Bahrain use in the region, especially for small Center for Victims of Domestic consumer survey which gauged and focusing on SMS and Data The Rwanda Utilities Regulatory and medium-sized companies; Violence discussed managing overall consumer satisfaction services. Accommodating the Agency (RURA) visited Bahrain on a consumer protection in Arab feelings and emotions, discovering of telecom services and service end users’ needs, the project 89% study tour. The delegation reviewed countries and ways to solve cross- root causes of anger, and directing providers. Bahrain’s residents also aimed to encourage regional Mobile broadband the best practices for monitoring border problems for consumers; and positive and negative energy while were invited to take part in the competition and improve the social subscribers represented and benchmarking quality of the encouragement to share fixed remaining calm and assertive, to survey and applicants were fabric of the GCC region. 89% of total broadband telecommunications services, with a focal points between Arab regulators better choose appropriate solutions automatically entered into a raffle, subscribers at the particular interest in the way quality to facilitate effective communication in different situations. to win four iPad mini devices. Bahrain Ranks in ITU of fixed broadband services is being on the AREGNET’s website. The MIS Report end of 2013. observed in Bahrain. The delegates, TRA delivered a presentation on Services Audit & Notification Appreciation to Online The International Mrs Yvonne Umutoni, Mr Artupenda the Arab retail price benchmarking Prompted by an increase in Survey Participants Telecommunication Union (ITU) Mugisha and Mr Emmanuel study which is conducted by the consumer complaints for voice The TRA thanked and extended its issued the fifth edition of the Ntambara, were presented with the TRA on behalf of the AREGNET. The quality in particular, the TRA appreciation to all who participated ITU Measuring the Information TRA’s quality of service initiatives meeting also adopted a draft law conducted an audit for services in the Online Consumer Survey. Society (MIS) report. The report and implementations, highlighting on information and communication in May 2013. Mobile network

The draw was conducted early the benefits for consumers in the technology in the Arab region operators were notified following the August at the TRA’s Headquarters, featured two benchmarking tools Kingdom. The quality of mobile as a consultation paper for Arab results of the audit in June 2013. in the presence of a representative to measure the development and services, exchange on quality of countries, and discussed the The TRA requested each mobile from the Ministry of Industry and performance of the information service experience, and other importance of protecting children network operators to investigate Commerce. society: the ICT Development regulatory framework initiatives in online, at the Arab and global and report reasons for the level of Index (IDI) and the ICT Price both countries were also discussed. levels. “call failures” and “calls dropped” Online Consumer Survey Basket (IPB). Bahrain achieved specific to their own networks and Consumers won four iPad minis as the eighth highest increase in IDI Arab Regulators Networking Annual Medical Check-up take appropriate action. Following part of a raffle that supported the value during 2012, with the ITU The Kingdom of Bahrain, The TRA held its annual medical this, the TRA continued to monitor Online Consumer Survey held in referring to Bahrain as one of the represented by the TRA, check-up for all staff in collaboration the evolution of quality of service July. The Online Survey is part of most dynamic countries. Bahrain participated in the 11th meeting with the University Medical Center indicators in coordination with the the TRA’s initiative to better handle also ranked third in the Arab of the Arab Regulators’ Network of King Abdullah Medical City. industry. consumer grievances and needs in region in 2012 and ranked 39th (AREGNET), held in Rabat, Employees were examined to the telecoms sector. globally. Regarding the ICT Price Kingdom of Morocco in May check blood pressure, diabetes Cancellation of Invitation Basket, Bahrain ranked 11th out 2013. The delegation representing and cholesterol. The annual to Tender Roaming Working of 110 countries in terms of mobile TRA consisted of Mr Shadi bin event highlights TRA’s continuous The TRA announced the cancelling Group Meeting broadband affordability, with Shamsan Al Waswasi, Manager of commitment to staff welfare and of ITT (Invitation to Tender) in a The TRA Bahrain was nominated mobile-broadband prices below Finance; Engineer Abdulrahman raising health awareness. public notice. This was in relation to by the GCC Council Ministerial one per cent of monthly GNI bin Hisham Al Suwaidi, Manager Committee to chair the Roaming per capita. Annual Report 2013 57 58

Regional Development Twitter Account Launch the RPM coordination meeting of development of its employees. In fines for violation of Articles 35 and/ Forum & Regional The TRA’s Twitter account “@ the International Telecommunication order to keep up with the dynamic or 65 of the Telecommunications Preparatory Meeting ask_TRA” was launched to serve Union which was held in Geneva telecommunications sector, not just Law. The Fining Guidelines The TRA hosted the Regional and interact with consumers in in December 2013. The meeting in terms of technology and services, document first sets out the Development Forum (RDF) and Bahrain. The account regularly was held in view of the World but also laws and regulations, the methodology to be followed, to Regional Preparatory Meeting updates information about Telecommunication Development TRA conducts such workshops. determine the amount of a fine (RPM) for the Arab Region. consumer rights and issues of Conference 2014 (WTDC-14), for engaging in anti-competitive Regulators, policy makers and interest, as well as serves as a which was conducted from 31st Bahrain International conduct under Article 35 or 65. It experts from across the region digital platform to compliment March to 11th April, 2014. Bahrain Technology Exhibition also sets out the methodology to be got together to identify key the consumer service hotline. and the TRA are recognised for The TRA participated in the Bahrain followed, to determine the amount areas of development. The RPM In addition to bridging the gap their initiatives and leading role in International Technology Exhibition of fine for all other violations of was chaired by Dr Mohammed between consumers and the TRA, regulating the telecommunications (BITEX), organised during the MEET Article 35. Al Amer, Chairman of the TRA it is in line with the government’s sector and stimulating competition ICT Conference at the Bahrain and the RDF was chaired by Mr vision to accelerate the resolution and investment at the local level, as International Exhibition Centre, Reduction in Processing Time Mohammed Bubashait, General of consumer concerns. well as their effective contributions under the patronage of the Minister for Portability Services Director of the TRA. ICTs for a at both the regional and international of Transportation, Mr Kamal Ahmed. According to revised regulations smart sustainable development Celebrating Bahraini levels through their participation in TRA was allotted a stand where it issued by the TRA, service providers model, ICTs as a catalyst for Women’s Day international events and hosting of presented the services it provides are legally bound to complete a 35% improving health, and ICTs for The TRA hosted lunch for all its conferences and meetings where to consumers and how it regulates request within eight business hours, At the end of 2013, fixed wireless quality education services were female employees at the Ritz- decision-makers meet. telecommunications companies which was earlier set at 48 hours. telephony (WiMax) some of the key issues that were Carlton Hotel in honour of Bahraini in Bahrain. It also presented the The processing time for a fixed discussed. Women’s Day. Themed “Woman Competition Law & New various electronic services that can number portability request has also represented 35% of the and Media”, it was a recognition Trends Workshop be utilised through its website and been slashed from 72 hours to eight total fixed lines. ITU’s “Achievements of their efforts and effective The TRA, in cooperation with other social websites. but can be extended for another and Way Forward Arab contribution towards driving and Charles Russell Bahrain, held eight business hours in case the Region” Book facilitating development in Bahrain. a workshop on “Competition Issue of Fining Guidelines provider faces technical difficulties. Dr Mohammed Ahmed Law and new Trends in the As part of its continuous efforts to A total of 125,684 mobile number Al Amer, Chairman of Best Regulator of the Year Telecommunications Sector.” improve the telecommunications portability requests have been the Telecommunications Award The workshop was part of the sector through stringent regulation, processed since the facility was first Regulatory Authority of the The TRA was announced as the TRA’s continued dedication to the TRA issued a consultation introduced in 2011, by the TRA. Kingdom of Bahrain received ‘Best Regulator of the Year’ in knowledge sharing, and training and document to decide the amount of the eighth edition of the annual CommsMEA Award. Having cultivated a thriving environment for the local telecommunications sector to flourish, the TRA won the award for the fourth consecutive year. Strong competition was posed by the TRAs of the Kingdom of Saudi Arabia, the UAE and Qatar’s Supreme Council of Information & Communication Technology.

Bahrain’s 14th National Day the “Achievements and Way The TRA celebrated the Forward Arab Region” Book as National Day of the Kingdom of an initiative of the International Bahrain and the 14th Accession Telecommunication Union (ITU). Anniversary of His Majesty King Mr Brahima Sanou, Director Hamad bin Isa Al Khalifa, in of the ITU Telecommunication partnership with the Royal Charity Development Bureau handed over Organisation. The ceremony was the book to Dr Al Amer during attended by a number of children the Arab Regional Development supported by the Royal Charity Forum. The book addresses Organisation and their families. the most prominent regulatory practices in the Arab world since TRA Chairman Presides over the establishment of regulators up RPM Coordination Meeting until the present. Dr Mohammed Al Amer, Chairman TRA celebrates Bahraini Women’s Day of the TRA was elected to oversee Annual Report 2013 59 60 19 TRA Family: Core of TRA’s Success The TRA’s work culture promotes free-flowing information, collaboration, accountability, and a spirit of excellence. In all our Passion We perform our roles with purpose, pride, and projects and initiatives, our cadres excel in the key values that are a positive attitude. critical to achieving success. Performance We strive for excellence in all we do. Teamwork We drive success through strong collaboration and Training and Development Performance Management Review TRA developed a comprehensive plan for training and (PMR) – Innovation communication. development of TRA members with the total training TRA set a challenge for all employees to come up with hours amounting to 2,467 by May 2013, which provided innovative ideas and initiatives, which will be evaluated Integrity We uphold our ethics and principles with every action and on average 46.5% of training hours for each staff. through the Performance Management Review (PMR) every decision. The objective of this plan is to define the employees’ contributing 30 per cent to the overall performance, skills, competencies and performance levels in order to with the objective to encourage innovation in TRA and Adaptability We are flexible and embrace change. achieve TRA’s mission, vision and strategic goals. distinguish innovative employees.

The Bahrainisation percentage within the 85% TRA reached 85% by the end of 2013.

Annual Report 2013 61 62 20 Financial Statements & Auditor’s Report } For the year ended December 31, 2013

Reaching for the skies: Exceeding expectations 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. Annual Report 2013 63 64

Telecommunications Regulatory Authority Manama - Kingdom of Bahrain Independent Auditor’s Report Unit Number 80780000 The Board of Directors, Telecommunications Regulatory Authority, Board of Directors Manama, Kingdom of Bahrain. Mr Mohammed Ahmed Al Amer – Chairman Shaikh Hamad bin Mohammed bin Hamad Al Khalifa Report on the Financial Statements Management’s Responsibility for the Colonel Riyadh Eid Abdulla We have audited the accompanying financial Financial Statements statements of Telecommunications Regulatory Mr Tariq Abdul Jalil Al Saffar Management is responsible for the preparation and Authority (“the Authority”), which comprise the Mr Isa Abdulrahman fair presentation of these financial statements in statement of financial position as at December 31, accordance with International Financial Reporting 2013, and the statement of excess of income over Standards, and for such internal control as expenditure, statement of changes in accumulated General Director management determines is necessary to enable the funds and statement of cash flows for the year then preparation of financial statements that are free from Mr Mohammed Hamad Bubshait ended, and a summary of significant accounting material misstatements, whether due to fraud or error. policies and other explanatory information. Deputy General Director Shaikh Nasser bin Mohammed Al Khalifa (Until July 1, 2013)

Director – Finance and Human Resources Mr Faisal Ali Al Jalahma

Registered Office 5th Floor, Building 852, Road 3618, Seef 436, P.O. Box 10353, Manama, Kingdom of Bahrain.

Bankers Bank of Bahrain and Kuwait Ithmaar Bank Khaleeji Commercial Bank

Auditor Deloitte and Touche, P.O. Box 421, Manama, Kingdom of Bahrain.

Annual Report 2013 65 66

Auditor’s Responsibility Qualified Opinion Our responsibility is to express an opinion on In our opinion, except for the possible effect of the these financial statements based on our audit. We matter described in the Basis for Qualified Opinion Statement of conducted our audit in accordance with International paragraph, the financial statements present fairly, Standards on Auditing. Those standards require that in all material respects, the financial position of we comply with ethical requirements and plan and Telecommunications Regulatory Authority as at Financial Position As a December 31, 2013 perform the audit to obtain reasonable assurance December 31, 2013, and of its financial performance about whether the financial statements are free from and its cash flows for the year then ended in material misstatement. accordance with International Financial Reporting Notes 2013 2012 Standards. An audit involves performing procedures to obtain Assets BD BD audit evidence about the amounts and disclosures Emphasis of Matter Non-current asset in the financial statements. The procedures selected We draw attention to Note 21 (iii) to the financial Plant and equipment 5 388,022 557,410 depend on the auditor’s judgement, including the statements which describes the uncertainty related to assessment of the risks of material misstatement the outcome of potential claims involving the Authority of the financial statements, whether due to fraud or and two licensed operators and suppliers. Our opinion error. In making those risk assessments, the auditor Current assets is not further qualified in respect of this matter. License fees and other receivables 6 4,038,186 7,613,701 considers internal control relevant to the entity’s Cash and bank balances preparation and fair presentation of the financial 8 29,236,232 19,363,761 statements in order to design audit procedures that Report on Other Legal and Total current assets 33,274,418 26,977,462 are appropriate in the circumstances, but not for the Regulatory Requirements Total assets 33,662,440 27,534,872 purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes In our opinion, the Authority has maintained proper evaluating the appropriateness of accounting policies accounting records and the financial statements have used and the reasonableness of accounting estimates been prepared in accordance with those records. Accumulated funds and made by management, as well as evaluating the We further report that, to the best of our knowledge overall presentation of the financial statements. and belief, the financial information provided in the liabilities Board of Directors’ Report is in agreement with the Accumulated surplus 9 29,601,855 22,793,304 We believe that the audit evidence we have obtained financial statements and based on the information Total accumulated funds 29,601,855 22,793,304 is sufficient and appropriate to provide a basis for our and explanations provided by the management which qualified audit opinion. were required for the purpose of our audit, we are not aware of any violations of the relevant provisions of Liabilities Basis for Qualified Opinion Law Number 48 of 2002 issued on October 23, 2002, Non-current liability As stated in Note 6.1 to the financial statements, the having occurred during the year ended December Provision for employees’ end-of-service Authority’s receivables include past due amounts 31, 2013 that might have had a material effect on the benefits 10 43,573 44,484 outstanding for more than one year totalling BD business of the Authority or on its financial position. 870,018 from customers in respect of services Deferred license fee 11 3,412,263 - provided. We were unable to obtain sufficient 3,455,836 44,484 appropriate audit evidence about the the recoverability of these receivables as at December 31, 2013 and Current liabilities of the need of any allowance for impairment to be Trade and other payables 12 604,749 4,697,084 recognised against these balances. Consequently, we Deloitte & Touche Total current liabilities 604,749 4,697,084 were unable to determine whether any adjustments Manama, Kingdom of Bahrain to the receivables balance at December 31, 2013 and Total liabilities 4,060,585 4,741,568 May 29, 2014 excess of income over expenditure for the year were Total accumulated funds and liabilities 33,662,440 27,534,872 necessary.

The financial statements were approved and authorised for issue by the Board of Directors on May 29, 2014 and signed on its behalf by:

Dr Mohammed Ahmed Al Amer Mr Mohammed Hamad Bubshait Chairman General Director

Annual Report 2013 67 68

Statement of Statement of

excess of income over expenditure Cash Flows For the Year Ended December 31, 2013 For the Year Ended December 31, 2013 2013 2012 Notes 2013 2012 Cash flows from operating activities BD BD BD BD Excess of income over expenditure for the year 21,966,670 17,490,019 Adjustments for: License fees 13 20,926,291 20,438,231 Depreciation expense 241,684 284,453 Frequency and spectrum fees 4,127,295 3,893,018 Provision for employees’ end-of-service benefits 43,896 18,835 Numbering fees 902,365 844,280 22,252,250 17,793,307 Other income 14 784,741 477,773 Changes in operating assets and liabilities: Income 26,740,692 25,653,302 Decrease in license fees and other receivables 3,575,515 4,010,858 (Decrease) / increase in trade and other payables (4,092,335) 3,524,290 Staff costs 15 (1,944,230) (1,798,012) Payment of employees’ end-of-service benefits (44,807) (35,033) Board of Directors’ remuneration 7.1 (40,000) (40,000) Licence fees received in advance 3,412,263 - General and administrative expenses 16 (616,972) (830,216) Net cash from operating activities 25,102,886 25,293,422 Consultancy and legal fees 17 (1,836,149) (702,829) Publicity and promotions (94,987) (19,685) Cash flows for investing activity Depreciation 5 (241,684) (284,453) Fixed deposits made (10,394,451) (5,359,510) Other expenses 21(ii) - (4,488,088) Purchase of plant and equipment (72,296) (40,018) Net cash used in investing activity (10,466,747) (5,399,528)

Expenditure (4,774,022) (8,163,283) Cash flows for financing activity Excess of income over the expenditure for the year 21,966,670 17,490,019 Transfer made to the Ministry of Finance (15,158,119) (38,875,737) Net cash used in financing activity (15,158,119) (38,875,737)

Net decrease in cash and cash equivalents (521,980) (18,981,843) Cash and cash equivalents at beginning of the year 14,004,251 32,986,094

Cash and cash equivalents at 13,482,271 14,004,251 end of the year (Note 8)

Annual Report 2013 69 70

Annexes A Granted Service Licenses as of December 31, 2013

Class License for Internet Services (ISP) 21 Sl. No. Licensee Issue Date 1 2Connect W.L.L 06-Sep-2004 2 Ascentech Technical Services 01-Nov-2006 3 Atyaf Telecommunications & Infrastructure Bahrain W.L.L 27-Jul-2009 Annexes 4 Bahrain Broadband Company W.L.L 29-Jul-2009 5 Bahrain Telecommunications Company B.S.C - Batelco 21-Jun-2003 6 Business Communication Networks 11-May-2005 2013 7 Circletel Consultancies Company W.L.L 21-Mar-2007 8 Elephant Talk Bahrain W.L.L 11-Jul-2006 9 Etisalcom Bahrain Company W.L.L 26-Jul-2005 10 Fastelco Services Company W.L.L 18-Jan-2006 11 Gateway Gulf Company B.S.C (Closed) 21-Sep-2003 12 Golden Sands Electronics and Phone 04-Nov-2007 13 Golden Star Telecommunications W.L.L 02-Apr-2007 14 iCOL Plus W.L.L 12-Nov-2007 15 Kalaam Telecom Bahrain B.S.C. (Closed) 11-May-2005 16 Kulacom Communication S.P.C 17-Jan-2008 17 Kuwait Establishment General Trading and Contracting 11-Feb-2007 18 Lightspeed Communications W.L.L 22-Sep-2004 19 Mena Telecom W.L.L 03-Nov-2004 20 North Star Technology Company W.L.L 22-Mar-2005 21 Nuetel Communications S.P.C 15-May-2005 22 Orbit Data Systems Company W.L.L 28-Aug-2005 23 Rapid Telecommunications W.L.L 06-Sep-2009 24 Rawabi NGNS 17-Oct-2007 25 Skyfi Networks W.L.L 23-Jul-2007 26 Tasameem Establishment 28-Sep-2003 27 ViaCloud W.L.L 21-Sep-2005 28 VIVA Bahrain B.S.C 26-Jul-2009 29 Voice Stream S.P.C 22-Jun-2006 30 Zain Bahrain B.S.C 18-Aug-2003 31 Zajil Information Technologies International W.L.L 05-Mar-2008

Class License for Value Added Services (VAS) Sl. No. Licensee Issue Date 1 2Connect W.L.L 04-Dec-2004 2 Access Telecommunication W.L.L 15-Oct-2005

Annual Report 2013 71 72

3 Al Gazal Telecommunications Co. W.L.L 13-Feb-2008 47 Societe Internationale de Telecommunications Aeronautiques (SITA) 31-Aug-2003 4 Ali Almusallam Co. S.P.C 13-Jul-2010 48 Star Gate Telecommunication W.L.L 21-Sep-2005 5 Ascentech Technical Services 28-Jun-2006 49 Star Telemedia .L.L 12-Jul-2004 6 Atyaf Telecommunications & Infrastructure Bahrain W.L.L 27-Jul-2009 50 ViaCloud W.L.L 27-Apr-2005 7 Bahrain Broadband Company W.L.L 01-Nov-2005 51 VIVA Bahrain B.S.C Closed 26-Jul-2009 8 Bahrain Call 20-Jun-2004 52 Voice Stream S.P.C 22-Jun-2006 9 Bahrain Telecommunications Company B.S.C - Batelco 21-Jun-2003 53 Zain Bahrain B.S.C 18-Aug-2003 10 BT Solutions Limited - Bahrain Branch 20-Mar-2004 54 Zajil Information Technologies International W.L.L 05-Mar-2008 11 Business Communication Networks 11-May-2005 12 Callforeign Middle East S.P.C 03-Feb-2009 Individual License for International Telecommunications Facilities (IFL) 13 Cellucom W.L.L 07-May-2006 Sl. No. Licensee Issue Date 14 Digi Connect Company W.L.L 01-Feb-2006 1 2Connect W.L.L 16-Jan-2013 15 Elephant Talk Bahrain W.L.L 11-Jul-2006 2 Bahrain Internet Exchange 13-Dec-2009 16 Etisalcom Bahrain Company W.L.L 19-Mar-2005 3 Bahrain Telecommunications Company B.S.C - Batelco 21-Jun-2003 17 Fakhroo Information Technology Services W.L.L 19-Apr-2005 4 Digi Connect Company W.L.L 03-Nov-2004 18 Fastelco Services Company W.L.L 15-Oct-2005 5 Etisalcom Bahrain Company W.L.L 29-Aug-2006 19 First Connex Gulf W.L.L 27-Jan-2011 6 Flag Telecom Group Limited - Bahrain Branch Office 20-Apr-2005 20 First International Network Company (Foreign Branch) 14-Jan-2007 7 Gateway Gulf Company B.S.C (Closed) 17-Oct-2005 21 Fusion Bahrain W.L.L 25-Sep-2006 8 Golden Star Telecommunications W.L.L 02-Apr-2007 22 Gateway Gulf Company B.S.C (Closed) 21-Sep-2003 9 Kasiopia Net Com - KNC (Bahrain) W.L.L 27-Apr-2005 23 Golden Sands Electronics and Phone 13-Jul-2010 10 Kuwait Establishment General Trading and Contracting 11-Feb-2007 24 Golden Star Telecommunications W.L.L 02-Apr-2007 11 MADA Communication Company S.P.C 17-Sep-2009 25 iCOL Plus W.L.L 15-Feb-2005 12 Mena Telecom W.L.L 03-Nov-2004 26 Invita Company B.S.C (Closed) 28-Feb-2006 13 North Star Technology Company W.L.L 22-Mar-2005 27 Kalaam Telecom Bahrain B.S.C. (Closed) 18-Apr-2005 14 Nuetel Communications S.P.C 15-May-2005 28 Kasiopia Net Com - KNC (Bahrain) W.L.L 27-Apr-2005 15 Orbit Data Systems Company W.L.L 28-Aug-2005 29 Kulacom Communication S.P.C 17-Jan-2008 16 OSS Telecommunication W.L.L 01-Jul-2007 30 Lightspeed Communications W.L.L 26-Apr-2005 17 Rapid Telecommunications W.L.L 06-Sep-2009 31 Media Phone Plus General Trading 07-Jan-2006 18 Rawabi NGNS 28-Jul-2008 32 Mena Business Services (Foreign Branch) 28-Nov-2007 19 ViaCloud W.L.L 27-Apr-2005 33 Mena Telecom W.L.L 03-Nov-2004 20 VIVA Bahrain B.S.C Closed 26-Jul-2009 34 Mobile Information Services 08-Feb-2005 21 Zain Bahrain B.S.C 09-May-2004 35 Mobilink Company W.L.L 28-Feb-2006 36 Mobitel Communication W.L.L 19-Mar-2009 Individual License for International Telecommunications Services (ISL) 37 Moving Gulf Telecom W.L.L 18-Oct-2010 Sl. No. Licensee Issue Date 38 North Star Technology Company W.L.L 22-Mar-2005 1 2Connect W.L.L 04-Dec-2004 39 Nuetel Communications S.P.C 15-May-2005 2 Access Telecommunication W.L.L 15-Oct-2005 40 Orbit Data Systems Company W.L.L 28-Aug-2005 3 Al Gazal Telecommunications Co. W.L.L 13-Feb-2008 41 OSS Telecommunication W.L.L 01-Jul-2007 4 Al Zubara International Trading 25-Nov-2007 42 Rapid Telecommunications W.L.L 06-Sep-2009 5 Ali Almusallam Co. SPC 13-Jul-2010 43 Rawabi Al Bahrain Company W.L.L 25-Oct-2004 6 Ascentech Technical Services 05-Jul-2006 44 Rawabi NGNS 30-Oct-2007 7 Bahrain Broadband Company W.L.L 01-Nov-2005 45 Red Moon Communications S.P.C 04-Jun-2006 8 Bahrain Telecommunications Company B.S.C - Batelco 21-Jun-2003 46 Smart Marketing Company 07-Jan-2006 9 BT Solutions Limited - Bahrain Branch 23-Jul-2005 Annual Report 2013 73 74

10 Business Communication Networks 11-May-2005 Individual License for National Fixed Services (NFL) 11 Cable & Wireless Worldwide Bahrain W.L.L 13-Dec-2012 Sl. No. Licensee Issue Date 12 Callforeign Middle East S.P.C 03-Feb-2009 1 2Connect W.L.L 01-Aug-2005 13 Elephant Talk Bahrain W.L.L 11-Jul-2006 2 Atyaf Telecommunications & Infrastructure Bahrain W.L.L 27-Jul-2009 14 Equant Global Network - Foreign Branch (EGN BV) 15-Nov-2005 3 Bahrain Broadband Company W.L.L 29-Jul-2009 15 Etisalcom Bahrain Company W.L.L 19-Mar-2005 4 Bahrain Telecommunications Company B.S.C - Batelco 21-Jun-2003 16 Fakhroo Information Technology Services W.L.L 27-Apr-2005 5 Elephant Talk Bahrain W.L.L 11-Jul-2006 17 Fastelco Services Company W.L.L 15-Oct-2005 6 Etisalcom Bahrain Company W.L.L 15-May-2006 18 First International Network Company (Foreign Branch) 14-Jan-2007 7 Golden Star Telecommunications W.L.L 02-Apr-2007 19 Fusion Bahrain W.L.L 25-Sep-2006 8 Kalaam Telecom Bahrain B.S.C. (Closed) 14-Aug-2005 20 Gateway Gulf Company B.S.C (Closed) 17-Oct-2005 9 Kulacom Communication S.P.C 17-Jan-2008 21 Golden Star Telecommunications W.L.L 02-Apr-2007 10 Lightspeed Communications W.L.L 26-Apr-2005 22 Gulf Electronic Tawasul Company 14-Apr-2011 11 Mena Telecom W.L.L 23-Jan-2006 23 Hawar Telecommunications Company W.L.L 09-Dec-2007 12 Nuetel Communications S.P.C 16-May-2005 24 IMC 29-Aug-2006 13 Rapid Telecommunications W.L.L 06-Sep-2009 25 Kalaam Telecom Bahrain B.S.C. (Closed) 18-Apr-2005 14 Rawabi NGNS 28-Jul-2008 26 Kasiopia Net Com - KNC (Bahrain) W.L.L 27-Apr-2005 15 VIVA Bahrain B.S.C 18-Apr-2010 27 Kulacom Communication S.P.C 17-Jan-2008 28 Kuwait Establishment General Trading and Contracting 11-Feb-2007 Individual License for National Fixed Wireless Services (NFWL) 29 Lightspeed Communications W.L.L 26-Apr-2005 Sl. No. Licensee Issue Date 30 MADA Communication Company S.P.C 17-Sep-2009 1 Mena Telecom W.L.L 08-Jan-2007 31 Mena Telecom W.L.L 03-Nov-2004 2 Zain Bahrain B.S.C 08-Jan-2007 32 Moving Gulf Telecom W.L.L 18-Oct-2010 33 North Star Technology Company W.L.L 22-Mar-2005 34 Nuetel Communications S.P.C 15-May-2005 Internet Exchange License (IEX) 35 Orbit Data Systems Company W.L.L 28-Aug-2005 Sl. No. Licensee Issue Date 36 OSS Telecommunication W.L.L 01-Jul-2007 1 Bahrain Internet Exchange 14-Mar-2004 37 Rapid Telecommunications W.L.L 06-Sep-2009 2 Gateway Gulf Company B.S.C (Closed) 13-May-2007 38 Rawabi NGNS 30-Oct-2007 3 Rapid Telecommunications W.L.L 06-Sep-2009 39 Societe Internationale de Telecommunications Aeronautiques (SITA) 13-Mar-2005 40 Star Gate Telecommunication W.L.L 21-Sep-2005 Individual License for Very Small Aperture Terminal (VSAT) 41 ViaCloud W.L.L 27-Apr-2005 Sl. No. Licensee Issue Date 42 VIVA Bahrain B.S.C 21-Apr-2011 1 Awal Bank 21-Oct-2007 43 Voice Stream S.P.C 18-Jun-2005 2 Bahrain Car Racing Circuit 14-Mar-2004 44 Zain Bahrain B.S.C 01-Jul-2004 3 Bahrain Telecommunications Company B.S.C - Batelco 21-Jun-2003 45 Zajil Information Technologies International W.L.L 05-Mar-2008 4 Bahrain Training Institute 13-Mar-2005 5 BAPCO 27-Oct-2004 Individual License for Mobile Telecommunications Services (IMTL) 6 BNP Paribas 15-May-2005 Sl. No. Licensee Issue Date 7 Court of Crown Prince 21-Jan-2005 1 Bahrain Telecommunications Company B.S.C - Batelco 21-Jun-2003 8 GARMCO 09-May-2004 2 VIVA Bahrain B.S.C 26-Jul-2009 9 Gulf International Bank 19-Mar-2009 3 Zain Bahrain B.S.C 22-Apr-2003 10 US Military 14-Mar-2005 11 Zain Bahrain B.S.C 09-May-2004

Annual Report 2013 75 76

Annexes B Consultations issued in 2013 Consultations Sl. No. Issue Date 1 Draft Determination of Significant Market power and Determination of Dominant 19-Dec-2013 position in the Markets for Domestic Data Connectivity Services 2 Guidelines for the setting of the amount of a fine for violations of Articles 35 18-Dec-2013 and/or 65 of the Telecommunications law of the Kingdom Of Bahrain 3 Draft Determination of Significant Market power and Determination of 18-Dec-2013 Dominant position in the Markets for provision of broadband internet access services for fixed location. 4 TRA Three Year Work Plan ( 2013 – 2015 ) Final 06-Jun-2013 5 INVITATION TO TENDER - Award of Individual Mobile Telecommunications 28-Jan-2013 Licences and associated Frequency Licences for the delivery of mobile telecommunications services in the 900, 1800, 2100 and 2600 MHz frequency bands in the Kingdom of Bahrain

Annexes C Regulations, Determinations, Decisions and Guidelines issued in 2013 Regulations, Determinations, Decisions and Guidelines Sl. No. Issue Date 1 Dominance Designation for Termination Services on VIVA’s Mobile Network. 16-May-2013 2 2013 Cost of Capital Final Determination 20-Feb-2013 3 Dominance Determination for Wholesale International Services 20-Feb-2013

Annexes D Orders issued in 2013 Orders Sl. No. Issue Date 1 Order No. 2 of 2013 issued by Telecommunication Regulatory Authority under 01-Aug-2013 article 35 of the Telecommunications Law to VIVA Bahrain B.S.C.