MANAMA: Bahrain-based Kalaam Telecom, the first alternative telecommunications provider, is upbeat to double its market share as ISP provider from 17% to 34% in addition to strengthening its revenues and profitability levels in next three years.
Kalaam Telecom top executives on Tuesday announced the acquisition of Lightspeed Communications, a subsidiary of Jordan Telecommunications Co, also spelled out Kalaam’s plan by bringing the entire business under one umbrella.
However, executives would not speculate on job losses, if any, but said Kalaam will forego Lightspeed Communications’ license once the assessment work was over.
The size of investments n acquisition was also not disclosed as the deal was treated as a ‘private transaction’ since both the companies registered in Bahrain as closed companies.
The acquisition makes the company the second-largest Internet Service Provider (ISP) for Fixed Business Broadband in the Kingdom next to incumbent. Kalaam has strategically increased its Fixed (wired) Business Broadband market share to 17% and now has a cumulative client-base of more than 4,000 customers across all business segments.
The announcement was made by Nezar Mohammed Al Saie, Chairman of Kalaam Telecom, during a press conference held at Bait Al Tijjar, following approval from the Telecommunications Regulatory Authority (TRA).
This is the first merger and acquisition (M&A) transaction in Bahrain’s telecom history, with Kalaam leading this consolidation initiative.
“This strategic acquisition of Lightspeed Communications is a significant milestone for Kalaam that demonstrates our commitment to the telecom industry. We have taken the lead in the consolidation process in the country’s telecom industry and reiterate our confidence in the future of Bahrain’s economy,” Nezar Mohammed Al Saie, said.
“Accelerating our growth plans is a top priority. With the acquisition, Kalaam’s revenues stand to immediately double and provide significant profitability. This transaction will augment our ability to offer best-in-class products and solutions in the Bahrain and allow Kalaam to embark towards realising our strategic vision to be a leading Internet Service Provider in Bahrain as well as a major player in the region within the next three years. By ensuring long-term sustainability, providing excellent services to our customers and strong returns to our shareholders, we look forward to further invest in Bahrain’s telecom sector.”
“With this acquisition, we believe that Kalaam is on a very successful trajectory. Since 2006, Kalaam has been providing superior service and value to our customers and has created long-standing relationships based on customer satisfaction,” Veer Passi, Chief Executive Officer at Kalaam Telecom, said.
“This is reflected in the company maintaining a customer retention rate of 98% over the past 8 years. We are confident that by integrating our culture, products and consolidating our operations with the professionally-run and profitable company, such as Lightspeed Communications, we can broaden our customer base across all business segments.”
“Customers of the new combined entity will include some of the largest blue chip financial institutions and banks, private sector companies, government entities, residential customers and SMEs who will have access to both Lightspeed and Kalaam’s product offerings and excellent dedicated personalized customer service. As a result Kalaam will be able to provide potential and existing customers with the most comprehensive suite of best-in-class products to meet their local and international voice and data telecom needs. We look forward to the smooth integration of the combined businesses,” he added.
Despite the dynamic market changes in the local telecom industry, Kalaam has been successful in growing its market share regardless over the past 8 years. This acquisition is another major milestone in line with the company’s long term strategic vision. The company’s portfolio of telecom solutions and services for business customers include: Business broadband, National Data Connectivity – DIA, P2P & MPLS; International Data Connectivity – GMPLS, IPLC, VSAT; Voice – Business International calling and Toll-free service and ICT solutions like Data Center Hosting, AVPN, etc.