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 Annual Report 2013 2 4 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. Annual Report 2013 7 8 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