Day: February 10, 2011

Over the past five years, Bahrain This Month has written regularly about the state of the telecommunications market in the Kingdom. While the fireworks in the earlier years have given way to a period of relative calm, that looks about to change.

In some respects 2011 is a make or break year; it is set to be a tipping point. There are critical policy decisions to be made that will significantly shape the industry in the short- to medium-term, and perhaps, even the overall economy. In some quarters there is a renewed sense of optimism that the playing field will be a lot more level than it has been.

The developments that are driving this optimism are number portability, additional international connectivity, local loop unbundling and the release of the National Broadband Network (NBN) implementation strategy.

The comments from Veer Passi, Kalaam Telecom chief operating officer (page 86) suggest that, even after the wholesale price reductions demanded by the TRA from Batelco, VIVA offers competitive pricing in the wholesale market. It suggests a softer approach, where who is dominant or possesses market power is not the primary point of determination. Rather, it should be the presence of other operators in the market with equivalent dominance/power, who could balance out the market and keep it ‘in check’.

Operating in the most competitive of times, Kalaam Telecom has sustained its business model, become profitable and continues to deliver value to its clients. The past year has been an eventful one for Kalaam Telecom, as it has been for the telecom sector at large within the Kingdom.

“Consequent to the entrance of the third mobile operator in early March 2010, Kalaam was able to realign its strategy to take advantage of the resulting market dynamics,” says Veer Passi, Kalaam Telecom chief operating officer. “Not only have we expanded our market share in the corporate sector, but we also became EBIDTA positive in our fifth year of operation.”

“The aggressive marketing buzz created in the retail segment actually helped us in promoting our services to corporate businesses. The timing was just right; as corporations, faced with the current economic scenario, were looking for cost-saving options. It allowed us to gain momentum. Our established line of business solutions was well received by these clients, as they now had a practical option to help lower their communications costs.”

2011 Vision

“As we look ahead, we plan to expand the capacity and reach of our wireless and wired infrastructure,” advises Veer. “We will also participate in the Local Loop Unbundling (LLU) project, currently being finalised by the TRA.”

In the meantime, Kalaam intends to capitalise on the momentum achieved so far, continuing to grow its customer base through strategic marketing and to maintain the brand’s promise to be customer-focused, quality-driven and consistently provide value-based solutions.

“In the immediate future,” Veer adds. “Kalaam is hosting an inBusiness stand at both the Food and Hospitality Exhibition, at Bahrain International Exhibition Centre, from February 8-10, and the Middle East Financial Technology Market Show on April 18-19. So, please come down and see — we’d be delighted to talk to you”