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TRA issues notices to Batelco and Viva for price war

September 5, 2011
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Bahrain’s leading telecom operator Batelco and Saudi Telecom Company’s (STC) subsidiary VIVA have been served with notices by the Telecommunications Regulatory Authority (TRA) for anti-competitive prices for mobile originated calls to certain international destinations by these two operators.

With the aim to safeguard consumer’s interests and promote fair competition in the telecommunications market, the TRA of the Kingdom of Bahrain has completed investigations into complaints received from a group of licensed operators that Batelco and Viva had launched anti-competitive prices for mobile originated calls to certain international destinations which has prevented a fair opportunity being provided to all and harmed competition in the telecommunications sector of Bahrain.

TRA has issued separate notices Batelco and Viva under the Telecommunications Law of the Kingdom of Bahrain based upon its investigation. The notices allege that the operators’ pricing constituted an abuse of dominance in the international mobile telecommunications market, and breached the conditions of competition provided for by the Law.

TRA believes that such pricing destroys the market’s forces and hinders competition between operators by reducing the opportunities for fair competition in the market, and harms the interests of consumer in the long run.

TRA’s role is to promote and safeguard competition for the benefit of consumer. Where anti-competitive practices are detected TRA steps in, under the Telecommunications Law, to protect the interests of the Consumer and also assist in reinstating a fair and competitive market in the Kingdom of Bahrain.

TRA said that it would subsequently issue its final decision following consideration of Batelco and Viva’s responses on the notices.

Tags: BatelcoTRAVIVA
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