SEEF: The regulatory framework needs to be continuously reviewed to ensure that it reflects developments in what is a vibrant and rapidly changing sector, according to Bahrain’s telecom watchdog.
Telecommunications Regulatory Authority (TRA) Bahrain has announced to carry out a strategic market review of the telecommunications market in Bahrain.
“This strategic review should be seen in the context of TRA’s overall objectives, including the promotion of an effective and dynamic telecommunications sector, as well as the important impact that the sector has on the economy and society at large in Bahrain,” the TRA in a statement said.
“The last time TRA undertook a similar strategic market review was in 2008 and TRA believes that it is timely to carry out a new strategic review of the entire market.
“TRA recognizes that significant competition has developed in Bahrain in the last few years, not least on mobile and broadband services.”Consumers have today, in most cases, a wide range of choice of suppliers for services,” TRA in a statement said.
“The development of effective competition has led to substantial price reductions and new service innovations for consumers and businesses in Bahrain. Based on TRA’s own analyses and benchmarking with peers, the offers available in Bahrain are generally attractive. A lot of the market developments in the last few years have been positive and have provided clear benefits to the end users, but TRA acknowledges that
“The study will critically review current so-called ex-ante market regulation. Ex-ante regulation refers to remedies and obligations which are imposed upon operators with dominant positions in markets. As effective competition develops it is critical for any regulator to make sure that the market interventions in place are relevant and proportionate to the prevailing market situation.
“Based on experiences from around the world, over-regulation could stifle the development of a dynamic market, whereas too light-handed regulation may lead to preservation of dominant market positions and, as a consequence, effective market competition cannot develop and provide choice and value to end users.
“The strategic market review is a key initiative for the Authority. The study report and roadmap will set out TRA’s views on how the market has developed, but more importantly what should be done to promote an even more effective and dynamic market. As a sector we face important decisions for the future to ensure that the sector maximizes its positive contribution to the development of this nation. Appropriate and proportionate market regulation remains a key component in this regard,” TRA’s General Director Mohamed Bubashai, said.
“The study aims at identifying those parts of the overall telecoms market should in the future be subject to so-called ex-ante regulation, but also where current market regulation and remedies may be lifted. The study will furthermore make proposals on other regulatory measures, which would stimulate a more dynamic market for the benefit of all users.”
“The market review will evaluate not only competitive and technological developments in Bahrain but also review of international experiences and their potential implication for Bahrain, as well as trends and drivers for the future.”
The study results including the proposed implementation roadmap is expected to be available in June.