Analysis of Telecom sector in Bahrain - Growth, Trends, Forecast (2020-2025)
As with the blistering change in information and telecommunications technology (ICT) over the course of the last two decades has led nations such as Bahrain to align their infrastructure and competitive landscapes in order to legislate and regulate their ICT industries.
- The country has been at the forefront of technological, market and regulatory change for decades. In order to maintain its competitive positioning, Bahrain’s monarchy and the Bahrain Government have taken active steps in driving its telecom sector with the core of this process been the Kingdom of Bahrain Telecommunications Regulatory Authority (TRA).
- The TRA is primarily responsible for the implementation of Bahrain’s National Telecommunications Plan and to govern the competitive environment of the telecom industry as it works closely with policy-makers to digitally transform the country' sector form statutory monopoly operator to multiple players compete for the share for the healthy growth of the market. For instance, TRA was able to switch the market Batelco' monopoly with oligopoly with the introduction of vendors such as Zain, Viva among others in the region.
- The region also has taken extreme measures to facilitate the investment foundation ic ICT and aims to acquire relevant skills and talent required through tailored training and building programs so that function in line with the Economic Vision 2030 launched in 2008, which is focused on sustainability, fairness, and competitiveness as it aims to become smart kingdom by transforming the country to be leading business and Information & Communication Technology (ICT) hub for internet content & application.
- Also, according to the recent ITU report, the Kingdom of Bahrain has ranked 4th worldwide Telecommunication Infrastructure Index (TII) with the reported mobile subscription rate of 140% of the total population, 3rd global Rank in terms of estimated of 98% of internet users. Also, the recent report on Market indicators 2019 states that the region has achieved rank 1 in the Arab world and rank 31 globally on the ICT Development Index.
- For instance, in March 2019, the Ministry of Transportation and Telecommunications announced that the Kingdom of Bahrain has started its preparations for the rollout of 5G networks, and TRA has scheduled to allocate licensing and spectrum in the first week of April. This reflects the kingdom's drive for innovation leveraging the latest technologies and support to the stakeholders in the ICT sector.
- Furthermore, the region also facilitates internet access to all educational institutions as part of its digital empowerment initiative. Additionally, it provides free internet access in public areas including tourist areas, malls, and public facilities.
Key Market Trends
Digital Transformation trends within the Telecom Sector
- The kingdom of Bahrain is considered to be a regional player in digital transformation owing to its premature realization about the potential and importance of technology that enables its economic growth, human development and job creation among others, It is well known for its support for technology-driven businesses with government bodies taking care of regulatory role and governance.
- For instance, Bahrain was the first country in GCC to liberalize its telecom sector as it stands to lead the region with well-established information and communications technology (ICT) infrastructure.
- The region has issued standards for IoT connectivity with support for the use of frequency bands for IoT systems that are used in international mobile communications systems and it also has issued the working document in order to harmonize the use IMT spectrum for the narrowband IoT applications.
- Additionally, the region also has ensured that its wireless and fiber are arranged to support 5G and has reformed its frequency bands to accommodate the 5G networks. For instance, In June 2019, Batelco announced the launch of commercial 5G network available in Amwaj and Reef Island, making it the first telecom provider in Bahrain to implement commercial 5G network
- Furthermore, Bahrain Airport deploys advanced Information and communications technology (ICT) solutions including IoT, cloud-based unified communications, and big data among others for the deployment communication system across the entire airport. Additionally, it also delivers data sharing and analytics capabilities to leverage systems including Airport Operation Database and, Airport Collaborative Decision-Making.
Broadband Holds Largest Market Share
- As with the increase of appetite for data among the consumers, businesses and government bodies continue to be the substantial drive within the telecom sector. Consumer demand for telecommunications services such as broadband continues to evolve innovative applications, also with spectrum-hungry applications raises the demand for networks with high-speed capacity.
- For instance, In August 2019, the Kingdom of Bahrain's internet speed was reported to have improved considerably with an average speed of 55.12Mbps and rose by 10 places in one month as per the speedtest global index
- According to the quarterly market indicator (Q4 2019) report conducted by TRA based on Bahrain's lowest cost of high-speed internet service within range 10 to, 100 Mbps states that broadband penetration has reached 156.6% owing to 2,354,538 number of subscription with an increase of 7.5% in Q4 2019 as compared Q4 2018.
- Also, fixed wired broadband subscriptions reported an increase of 14.3% while the wireless broadband reported 7% in Q4 2019 and standalone broadband subscription increased by 20.8% as compared to Q4 2018.
- On the other hand, other services such as mobile services, fixed telephony services reported a penetration rate of 138% and 15% respectively, with telephony services reporting a 12.7% decline in domestic outgoing traffic and mobile services reporting a 14.6% decline in outing traffic.
- Also, the dominance of online content by OTT players such as Google, SnapChat, Instagram and YouTube, has been the root cause for concerns about net neutrality in markets including Western Europe and North America, however most the MENA market at their early stage of data boom is forcing the vendors to develop strategies that allow them to maximize the demand for non-voice services among users. For instance, In Feburay 2020, Batelco announced its partnership with Vianeos, a french multi-screen video platform to enhance the OTT services
- Furthermore, TRA devotes its resources to investigate complaints posed by consumers any telecommunication provides the best solution to the customer within their defined service level agreements.
- Additionally, In March 2020, Amidst the global pandemic COVID-19 Batelco announced that it is enabling free unlimited usage to all its fixed internet users as part of support the nation's intiative and government effort.
As with the evolving nature of Bahrain' telecommunication industry has led to the creation of a vibrant mix of players comprised of large licensed operators, niche players, The industry is expected to experience fragmentation as operators including MenaTelecom focuses on providing niche products such as fixed-line broadband service with stable returns, however, the large enterprises continue to invest in their infrastructure to keep up with technological advantages and expand offerings
- March 2020 - Batelco announced its partnership with Aptilo Networks to deliver business-to-business Wi-Fi services in Bahrain, under the partnership the company has selected Aptilo Service Management Platform (SMP) with Aptilo SMP Venue Wi-Fi Manager in order to deploy its nationwide managed Wi-fi service.
- November 2019 - Zain Bahrain selected Ericsson to deploy its 5G radio network in the kingdom of Bahrain. This partnership allows the company to offer enhanced fixed wireless access and mobile broadband so as to leverage the potential applications of technological trends including AR, VR and IoT.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.
- 1 INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
- 2 RESEARCH METHODOLOGY
- 3 EXECUTIVE SUMMARY
- 4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 High Mobile penetration, Low Tariff, and Mature Regulatory Authority
- 4.2.2 Successful Privatization and Liberalization Initiatives
- 4.3 Market Challenges
- 4.3.1 Increasing Data Demand Leading to Complexity in Service Delivery for Smaller Operators
- 4.4 Value Chain / Supply Chain Analysis
- 4.5 Porters Five Force Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Assesment of the Impact of COVID-19 in the Industry
- 5 TELECOM INDUSTRY ROADMAP
- 6 GOVERNMENT REGULATIONS AND POLICIES
- 7 KEY TELECOM INDUSTRY STATISTICS
- 7.1 Breakdown of Retail Services Revenue (Fixed Line Services, Mobile Services, International Calls, Internet Services, and Leased line Services), in BD million, 2013-2019
- 7.2 Breakdown of Broadband Subscriptions, in million, by Access Type (Fixed Wired and Wireless Subscription, Pay-per-use mobile broadband, Standalone mobile broadband, and Add-on broadband to voice), 2013-2019
- 7.3 Annual Data Consumption, in Petabyte, 2014-2019
- 8 MARKET SEGMENTATION
- 8.1 Type
- 8.1.1 Mobile
- 8.1.2 Fixed-Line
- 8.1.3 Broadband
- 9 DIGITAL TRANSFORMATION TRENDS IN THE TELECOM SECTOR IN BAHRAIN – TO COVER KEY INITIATIVES RELATED TO ADOPTION OF ANALYTICS & BIG DATA IN TELECOM INDUSTRY +A31:D46
- 10 COMPETITIVE LANDSCAPE
- 10.1 Company Profiles
- 10.1.1 Ascentech Telecom
- 10.1.2 Batelco (Bahrain Telecommunication Company BSC)
- 10.1.3 BT Solutions Ltd.
- 10.1.4 Equant Global Network (EGN BV)
- 10.1.5 Etisalcom Bahrain
- 10.1.6 Gulf Electronic Tawasul
- 10.1.7 Infonas W.L.L
- 10.1.8 STC Bahrain
- 10.1.9 Zain Bahrain
- 10.1.10 Kalaam Telecom Bahrain
- 10.1.11 Nuetel Communications
- 10.1.12 Rapid Telecom
- 10.1.13 Viacloud Telecom
- 10.1.14 Vodafone Enterprise Bahrain W.L.L.
- 11 MARKET OPPORTUNITIES AND FUTURE TRENDS