Batelco continues to invest in various platforms to elevate communication standards. CEO Eng. Muna Al Hashemi believes that there are unlimited opportunities to tap on the path of digitisation and explains how the telco plans to become the leading integrator of digital solutions in Bahrain.
Batelco has been pioneering several initiatives on the route of digital transformation in the Kingdom of Bahrain, however, financial results indicate declining revenues and profits for the group. Any kind of transformation is challenging, says Batelco Bahrain CEO Eng. Muna Al Hashemi; however, with a firm focus on customer centricity, the operator believes it is on the right track to be one of the leading digital service providers in the region.
“It’s very challenging, and interesting at the same time, because the Bahrain market is very dynamic,” Al Hashemi says. “For us, we love to work in such a competitive environment because you’re always pushing the limit of everyone.” Bahrain has seen a number of cutbacks in spending at government level, and while Hashemi admits there is an impact on business, she insists that Batelco Bahrain is focussed on the future.
Bahrain is now one of the most liberal markets in the region, reinforced by a well-developed regulatory structure. Batelco, which initially enjoyed the monopoly advantage, has had to face stiff competition in the subsequent years, with the introduction of several other operators in the Kingdom. That has reflected in a decrease in the number of overall subscribers though the number of broadband subscribers continues to be on the rise, driven by a high proportion of digitally exclusive customer base.
As market growth cools down, the core connectivity market is turning into a zero-sum game for operators, according to Lancelot Sursock, principal, A.T. Kearney. “Operators will need to find new avenues to sustain growth. However, on the positive side, he adds: “Beyond connectivity, the telecom sector has fostered a strong digital uptake in Bahrain. Based on the Global Telecom Consumer of the Future survey conducted by A.T. Kearney, the Bahrain Digital Index stood at 44%, which exceeds the European average and US level (40% and 41% respectively).” Going forward, the data share of revenues is poised to increase in Bahrain, stemming from the high digital uptake as well as increasing voice erosion.
Batelco Bahrain has launched several new initiatives to tap into the new opportunities that the digital era brings to the table. Upon being asked about the biggest success stories of Batelco Bahrain in 2016, Al Hashemi talks about Bahrain WiFi, 500 Mbps residential internet packages, IPTV services, and smart living solutions among others.
The nationwide WiFi rollout is aimed at connecting the whole of Bahrain with seamless internet access. In the first major step for the project, Batelco provided WiFi throughout the Bahrain International Circuit for the 2016 Formula One weekend, making it the first international circuit to provide free public WiFi. Over the course of the three day event, around 70,000 visitors connected to the Bahrain WiFi network which provided full coverage throughout the circuit with the public generating over one terabyte of WiFi traffic.
“Batelco’s effort to cover Bahrain with WiFi demonstrates the company’s commitment in developing relevant smart city solutions which help to maintain Bahrain’s leading position on the international market. Additionally this initiative reiterates the alignment of Batelco’s goals to those of the Kingdom of Bahrain and emphasises its support for the local digitisation drive,” Al Hashemi adds.
Batelco Bahrain also prides itself on having launched the ‘fastest broadband service in Bahrain’. “We are capable of delivering superfast internet at the speed of 500 Mbps to home customers,” says Eng. Al Hashemi. “We have a bigger project to roll out fibre to cover all of Bahrain. We are in an advanced stage with it.”
The telco has been recognised by Speedtest by OOKLA as Bahrain’s fastest mobile internet provider. Al Hashemi says: “We are very pleased with the recognition by OOKLA; it confirms that our efforts are meeting the need for world class services for residents of Bahrain.” Jamie Steven, EVP at Speedtest by OOKLA adds: “Batelco provides its customers with the fastest mobile internet available in Bahrain. We are delighted to acknowledge the strength and quality of Batelco’s network as well as their dedication to delivering fast speeds”.
Batelco has further launched the IPTV services in partnership with media companies like OSN. Al Hashemi says: “We have also recently hosted Netflix in our data centre, and we are working closely with them. We are also providing special bundles for Netflix fans. By hosting the content from Netflix on our network gives Batelco’s customers a big advantage as they can depend on a latency-free service to ensure the best and most enjoyable viewing experience.”
Al Hashemi further adds that the operator is looking to expand the content library available on its IPTV platform. “We are actively in discussions with numerous content players to bring their programming and VOD libraries to our customers’ living rooms.”
Adding to the strong competition from other telcos in the kingdom, Batelco faces challenges in what is a consumer-driven marketplace. So, how has the operator made progress as far as digital transformation is concerend? Al Hashemi says that the journey started in 2015 and Batelco has been continually upgrading its processes and revamping its portfolio to cater to the demands of the digital age. “Digital transformation is one of our key strategic pillars and we have strongly committed ourselves to this.”
The telco is providing several components of digital infrastructure to enterprises like cloud computing services (e.g. cloud 365), internet security, digital monitoring solutions, and energy saving products and services. “We have a big focus in our strategy on enterprise segments. When everybody is moving toward efficiency, we need to provide our enterprise customers with all the solutions and tools that will help them make their operations more agile and efficient,” says Al Hashemi.
Batelco has expanded its Enterprise Help Desk services to support mobile services including fault reporting. Al Hashemi says that Batelco has introduced a single contact number, 81888, to enhance and simplify the process of supporting business customers. In addition, Batelco Bahrain has announced the introduction of Unlimited Calling from all fixed PSTN (public switched telephone network) lines for enterprise customers.
On the consumer side, as well, the telco has upped its efforts to provide improved digital experiences for its customers across various touch points. Moving away from normal trend and keeping pace with the evolving needs of its customers, Batelco has internally developed and launched its own online portal through which customers can request any device online, and have it delivered wherever they are on the next business day. “Customers are the centre of everything we do”, says Al Hashemi.
Al Hashemi highlights Batelco’s Upgrade Your World – a campaign to provide end-to-end solutions promoting a better digital lifestyle. Further, in a move to simplify data roaming, the telco has introduced ‘Data Bolt On’ to enable customers to enjoy standard rates when using data services on the go. The telco has also come up with a Smart Bus which is primarily aimed at addressing safety concerns, particularly of the education sector. Developing smart cities in Bahrain is the next step. “There’s a clear roadmap from the government to really encourage and to turn Bahrain into an ICT hub. The smart city is one of the many things that will come under this umbrella,” Al Hashemi says.
Recently, Batelco has signed a number of agreements that Al Hashemi says will continue to keep the national telco ahead of the competition. The most significant from a consumer point of view was the signing of a MoU with Ericsson to collaborate on the development of 5G and the use of IoT in Bahrain.
“We are very proud that we were the first to launch 4G service in Bahrain. Then, we were the first to launch using the technology to have the fastest 4G mobile network (4G plus),” Al Hashemi says. “We will trial 5G and the other IoT applications in life-case scenarios to see what demand 5G could bring to the market.”
Driven by the significant demand for security services in Bahrain, Batelco signed a partnership agreement with Sophos, an IT security and data protection company. The telco also has a partnership with US-based network security company Palo Alto Networks.
It can’t be denied that Bahrain operators’ profitability is coming under increasing pressure. CapEx is high and increasing, drawing attention to the ROI. So, in the competitive challenging environment, what’s going to be the prime strategy of Batelco Bahrain to sustain profitability? Al Hashemi says: “The local telecom market in Bahrain is very busy, with a number of competitors vying for a relatively small customer base. It is a challenging operating environment and we need to act smart. Investment in fast and reliable internet services is a crucial part of our strategic plans to lead in the delivery of digital products and services. Furthermore, Batelco is known for its customer services; we operate the largest customer call centre in Bahrain which is available to customers 24 hours a day, every day of the year. Such elements among others help to give us a competitive edge.”
