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GCC 'fixed-lines costly, mobiles cheap'

Manama, June 9, 2008

The cost of fixed-line telephone calls are more expensive in the GCC than elsewhere while mobile costs are cheaper, according to a benchmarking study undertaken by Teligen.

Teligen is an independent consulting firm specialising in tariff comparison for the Bahrain Telecommunications Authority (TRA).

The study was commissioned by the TRA, as chair of the Arab Regulators Network in order to fill a gap, as no comprehensive price comparison exists for Arab countries.

The study compares baskets of telecommunications services for different consumer's profiles.

It is comprehensive in terms of services and geographic coverage and looks at fixed voice, mobile services, broadband and leased lines in Arab countries put in perspective with results for Organisation for Economic Co-operation and Development (OECD) countries.

Tariffs for fixed telephony services tend to be more expensive in the region than in OECD countries, though some countries are well below OECD averages, according to the report.

Results show that there is a wide spread of rates across the region.

Mobile tariffs is one area where the region is doing relatively well. In the majority of countries, tariffs compare well with the OECD average for low and medium usage baskets. Prices are rather uniform in the region.

Leased lines tariffs rates appear on the high side compared to OECD countries and broadband rates faced by customers in the region are high, especially for high speed (1-4Mbit/s), compared to European benchmarks.

Bahrain compares very well with other Arab and OECD countries for fixed voice tariffs.

However, these good results mask a problem with Batelco's current tariff structure in which the prices of services are out of line with underlying costs.

'The results confirm the measures which flow from the TRA's Strategic and Retail Market Review,' said TRA chief economist Dr Alexandre Serot.

'The results are encouraging,' said TRA general director Alan Horne.

"It is good to see that Bahrain is doing well in some areas. In a world where nations compete to attract businesses to promote economic development, it is paramount to offer competitively priced services."

"We should aim to be a leader not only within the region but also amongst the most advanced countries in the world. Meeting this aspiration necessitates continuous improvements to products and services offered and a sound regulatory approach," Horne added-TradeArabia News Service




Tags: TRA | study | costly | Fixed line telephone | mobiles cheap | Teligen |

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