The Telecommunications Regulatory Authority (TRA) has today released its final decision in relation to its review of competition in the wholesale markets for international services. TRA has concluded that Batelco is not dominant in two wholesale markets in which international services are supplied and that no other operator holds a position of dominance.
TRA’s finding that Batelco is not dominant in the supply of wholesale international services is an important step in ensuring that regulatory intervention only focuses on markets in which there is dominance or market power. As a result of this finding, Batelco will no longer be obliged to offer wholesale international services on a regulated basis. This is the first decision in which an operator previously holding a dominant position in a wholesale market has now been found not to be dominant.
“This is an important decision as it results in the removal of regulatory obligations in a wholesale market where competition has started to emerge,” says TRA’s General Director Mohamed Bubashait. “There is an increasingly diverse range of options for sourcing international capacity into and out of Bahrain, and it is important to ensure that the regulatory framework in Bahrain is adapted to reflect these recent competitive developments.”
In reviewing competition in the relevant markets, TRA took into account the arrival of a number of competing international cables into Bahrain, as well as recent efforts by other licensed operators (OLOs) to develop their own capacity using fibre through the Kingdom of Saudi Arabia. An important element of TRA’s analysis is that the relevant wholesale international markets are only competitive as long as OLOs are able to reach the landing points of these international cables, for example by accessing Batelco ducts or domestic wholesale leased lines.
TRA has also taken into account submissions received from operators on a draft determination that was issued for public consultation during 2012.