Bahrain's telecommunications operator has denied reports that it would open the doors for another operator. Yet despite the announcement, the local industry could still be in for change, reported the Global Arab Network. There has been speculation in the media that the Telecommunications Regulatory Authority (TRA) was considering making a fourth license available. Less than a year ago, Viva, operated by the Saudi Telecommunications Company, began operating in Bahrain, bringing competition to Bahrain Telecom, an arm of Kuwait-based Zain, which previously had held a monopoly in the area. TRA's chairman, Mohammed al-Amer, has rejected the rumors, saying Bahrain's telecom market is saturated after the launch of Viva and that there are no plans to make provisions for another mobile operator to enter. However, Amer did leave open the potential for expansion in the sector, saying democraphic growth could require an additional mobile phone operator in the future. Current mobile penetration rates stand at more than 150 percent, so any such population increase would have to be substantial. Rob Middlehurst, the TRA's deputy-general director, views the regulator's actions and the entry of Viva into Bahrain's market as positive. “The advent of Viva launching its services in the market also provided a significant stimulus to consumer choice and competition in the mobile sector,” he said. “The telecommunications sector has a significant collective responsibility to support the economic development of Bahrain.” Although there will be no new licenses granted in the near future, Bahrain's telecommunications sector may be seeing a new face soon: Etisalat, a UAE company, has launched a $12 billion bid to acquire a 46 percent stake in Zain. The move would see Etisalat gain a stake in the Bahraini market. BM
