Batelco slapped with $265k fine

FINE IMPOSED: Batelco has been slapped with a $265,392 fine for not providing services to rival 2Connect.

Bahraini telecom Batelco has been slapped with a 100,000 dinar ($265,392) fine for its failure to provide services to a rival telecoms service provider.

As Bahrain's incumbent telecom and owner of much of the kingdom's network infrastructure, Batelco is legally required to allow other telecoms access to its infrastructure under laws designed to increase competition in the sector.

Bahrain's Telecommunications Regulatory Authority (TRA) fined Batelco for delays in providing wholesale leased line services to 2Connect, which provides IP-based internet and phone services to residential and commercial customers.

The fine was reduced from 500,000 dinars after Batelco "committed to take appropriate steps in order to fulfil its obligations in a relatively short timeframe", the TRA said.

"Batelco must change its approach in meeting its legal obligations and wholeheartedly treat their wholesale customers in exactly the same manner they treat their retail customers," said TRA General Director Alan Horne.

"I am convinced that if Batelco works in a constructive manner with other operators it will not only pay dividends for Batelco but for the nation as a whole."

Batelco has labelled the ruling unfair and discriminatory, claiming the company was not obliged to provide services when capacity on its network was unavailable.

"Delivering such services in the requested time-frame would also have required Batelco to invest in its legacy network, a matter that Batelco was not obliged to do under the Telecommunications Law," Chief Executive Peter Kaliaropoulos said, quoted Bahrain's Gulf Daily News.

Batelco also claimed the TRA's interference had damaged its business relationship with 2Connect.

"This is clearly discriminatory conduct by the TRA against Batelco's commercial interests and has undermined Batelco's capacity to strike a sound commercial agreement with the operator that would resolve all issues between them," Kaliaropoulos said.

2Connect has been putting significant pressure on Batelco, especially in the provision of internet services.

Last year 2Connect launched an internet access service with no subscription fee aimed at low-income residential users as part of its "civic responsibility".

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