Market Trends of Analysis of Telecom Sector in Bahrain
This section covers the major market trends shaping the Bahrain Telecom Sector Analysis Market according to our research experts:
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, which enables economic growth, human development, and job creation, It is well known for its support for technology-driven businesses, with government bodies taking care of the 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 a 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 used in international mobile communications systems. It also issued the working document to harmonize the use of IMT spectrum for the narrowband IoT applications.
- Additionally, the region also ensured that the wireless and fibers are in place to support 5G. It reformed its frequency bands to accommodate the 5G network. For instance, in June 2019, Batelco announced the launch of a commercial 5G network available in Amwaj and Reef Island, making it the first telecom provider in Bahrain to implement a commercial 5G network.
- Furthermore, Bahrain Airport deploys advanced information and communications technology (ICT) solutions, including IoT, cloud-based unified communications, and Big Data, for the deployment of communication systems 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
- The increasing requirement for data among the consumers, businesses, and government bodies continues to drive the telecom sector substantially. Consumer demand for telecommunications services, such as broadband, continues to evolve innovative applications, also the spectrum-hungry applications boost 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 55.12 Mbps and rose by ten 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 subscriptions increased by 20.8% compared to Q4 2018.
- On the other hand, other services, such as mobile services and fixed telephony services, reported a penetration rate of 138% and 15%, respectively, with telephony services reporting a 12.7% decline in outgoing domestic 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, is the root cause for concerns about net neutrality in markets, including Western Europe and North America. However, most of the MENA market is at the early stage of the data boom, which is forcing vendors to develop strategies that allow them to maximize the demand for non-voice services among users. For instance, in February 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 of COVID-19, Batelco announced that it is enabling free unlimited usage to all its fixed internet users to support the nation's initiative and government effort.