Batelco Determined to Deliver Growth and Maintain the Kingdom’s Status as a Centre of Excellence in the Region

Batelco Determined to Deliver Growth and Maintain the Kingdom’s Status as a Centre of Excellence in the Region
**New Product & Service Offerings Major Boost to Business**
 
Batelco’s delivery of double digit top and bottom line results in Q1 was driven mainly by overseas operations, stated Batelco Chief Executive Officer Peter Kaliaropoulos at a press briefing held May 12th at Batelco’s Hamala Headquarters.
 
Batelco continued to deliver strong revenue growth, ending the quarter at BD78.1M, representing a 17.4% year on year increase, with net profit of BD27.4M, a growth of 10.8% over Q1 2007 incorporating a one off gain of BD6.8M from the sale of land owned by Batelco in Isa Town. 
 
‘While regulatory measures, increased competition from well established telecommunication providers and a growing line of new entrants affect revenue growth in Bahrain, our customers are benefiting from new services, promotions and better value,’ stated Mr. Kaliaropoulos.
 
Following on from an impressive line-up of product and service offerings last year, Batelco has already launched a number of excellent new products and services since January, including Video Conferencing and O-net Prepaid Mobile Broadband.
 
‘We continue to launch innovative and relevant new services in Bahrain, such as public studio video conferencing. The Video Conferencing service which was launched under the patronage of the Ministry of Industry and Commerce has been received very positively by business customers,’ he said.
In launching the service, Batelco is continuing with its commitment to offer world class services for the business community. Two, state-of-the-art Video Conferencing studios, are now open for business at Batelco’s Bahrain Commercial Complex in Manama.
 
‘Key advantages of Video Conferencing include the reduction, if not elimination, of business travel and the ensuing high cost of air travel and international hotels, not to mention the amount of time spent on travel.’
 
‘By utilising this cost effective and efficient new service, business customers can focus on revenue growth by promoting their products & services while reducing the cost of business trips,’ Mr. Kaliaropoulos said.
 
Batelco’s recently launched O-net Prepaid Mobile Broadband is the first service of its kind in the Kingdom. Mobile Broadband allows data card users to access the internet at high speeds, of up to 3.6MB, on any device that supports HSDPA (High Speed Downlink Packet Access) technology, such as HSDPA mobile phones, HSDPA equipped laptops and Batelco O-net cards.
 
‘The Prepaid Mobile Broadband service allows our customers to monitor and control their bills. We offers free SMSs with each package and a variety of refill options for customers’ convenience.’
 
Additionally Batelco recently introduced an electronic BD30 SimSim voucher with 400 days validity, the longest period of any refill option in the Kingdom. The BD30 e-Voucher includes a bonus of BD5 extra credit.
 
‘The combination of an extra BD5 credit plus validity of 400 days makes Batelco BD30 e-Voucher the best value in the Kingdom for prepaid customers,’ noted Mr. Kaliaropoulos.
 
World class telecommunications provided by Batelco for the annual Bahrain Grand Prix continue to enhance Bahrain’s position as a centre of excellence in the Middle East. This year Batelco’s infrastructure and services at the circuit were supported round the clock by Batelco’s NOC (Network Operations Centre) and its network professionals.
 
‘Our provision of round the clock connectivity was faultless with no cuts in service throughout the recent F1 event. Members of the international media reported that the internet connection was the best they had experienced with very fast upload speeds.’
 
Training Success at Batelco
 
Batelco Cisco Academy, which aims to boost the networking skills of a large number of trainees each year and provide fully qualified local talent with CCNA qualifications, is proving to be a very successful venture.
 
All 16 candidates, who participated in a six month CCNA course at the Academy and completed the programme successfully, were awarded at a recent presentation ceremony. Along with 12 Batelco staff members, the group included four unemployed girls nominated by the Ministry of Labour who were offered scholarships by Batelco. A new batch, consisting of 10 Batelco staff and 4 students nominated by the Ministry of Labour and offered scholarships by Batelco, began a 6 month CCNA course last month.
 
‘Batelco’s investment in training and development is in excess of a million dinars annually; in 2007 we invested BD1.415 million to put 1299 staff, representing 90% of our employees, through a variety of training programmes,’ noted Batelco’s Chief.
 
‘We see this investment in our people as a crucial component of the Group’s success. Finding talented people and retaining them through development programmes and incentive schemes remains one of our biggest challenges.’
 
Batelco Expands Overseas Reach
 
Batelco’s success story overseas continues. The mobile subscriber base across the Group has risen to 3.3 million - 704,000 are in Bahrain.
 
As part of the Etihad Atheeb consortium Batelco staff based in Saudi Arabia are currently going full steam ahead to ensure the delivery of wireless broadband, data solutions and voice services by the end of Q4 this year,” said Mr. Kaliaropoulos.
 
‘The Chairman of the founding committee, HRH Prince Abdulaziz bin Ahmed bin Adbulaziz Al Saud, has signed major contracts worth over $300 million with industry leading companies - Motorola for WiMax technology, ZTE for Core Network solutions and Wipro for IT services.’
 
‘Further substantial investments will be made over the next five years in leading edge technology, WiMax 802.16e, that will enable the delivery of cutting edge services nationwide in Saudi Arabia,’ he said.
 
‘Additionally, the Consortium has recently submitted an application to the Central Market Authority to allow us to proceed with an IPO by the end of July 08,’ added Mr. Kaliaropoulos.
 
Regulatory Pressures Ongoing
 
‘Regulatory reform and intervention is an accepted and welcomed aspect of Batelco’s day to day operations in Bahrain. We have a responsibility on behalf of our customers and shareholders to debate a number of issues with the TRA in order to achieve what we consider to be fair commercial returns for access to existing infrastructure in the Kingdom,’ explained Mr. Kaliaropoulos.
 
‘Batelco’s network is available to be used by all licensed operators. If the TRA determines the right commercial model, it will result in the industry and Batelco making new long term investment decisions which will support the Kingdom’s leading role as an important ICT hub,’ he added.
 
“We are confident that balanced decisions will be made by the TRA in the long term to ensure Batelco continues to invest in leading edge technologies and infrastructure and, support other operators to deliver new services in the Kingdom. Service-based competition creates the right value for customers, long term.’
 
Batelco recently commenced legal and arbitration action against the TRA for the imposition of the Section 35 Order and this matter will now take many months to be finalised. 
 
Mr. Kaliaropoulos said that in spite of regulation and increased competition Batelco would continue with its pursuit of market leadership in the Kingdom.
 
‘We will continue to invest in our chosen segments and will continue to further transform Batelco to effectively face additional competition in the future.’
 
‘We look forward to the completion of the NGN migration later this year which will transform the look of telecommunications in Bahrain. We are determined to maintain Bahrain’s status in the region as a centre of choice for the ever increasing band of international investors that pour into the Middle East region,’ concluded Mr. Kaliaropoulos.