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TRA Tells Batelco To Submit Plan To Split Into Two Entities By 06 September

The Telecommunications Regulatory Authority (TRA) has set Batelco a 06 September deadline to submit its plan for splitting the company into two separate entities, Gulf Daily News reported. The aim is to create two separate divisions, one responsible for Batelco’s retail business, and a new entity charged with ensuring equal access to Bahrain’s broadband infrastructure, including the fibre-optic network. Other deadlines related to licences, asset allocation, a cyber security plan and organisational structure, have also been put in place for for the period to February 2019.

The TRA says the process must involve the complete transfer of staff and assets to the new entity. For the avoidance of doubt, the authority expects that Batelco will implement separation by the transfer of staff and assets to the Separated Entity (SE) from Batelco, states the TRA in a new guideline. It said Batelco should set out the steps it will take during the transitional period to build towards achieving separation.

Batelco’s separation effectively ends its control of the nation’s fibre-optics network, since its rivals will be able to offer the same service to their customers on an equal basis, creating a more competitive environment. It has been instigated to ensure fair competition in the telecom sector, in which Batelco was the only player until 2003. Batelco is still the only ISP offering broadband packages on the fibre grid, with most of its competitors offering 4G services via routers.

The TRA has warned Batelco to notify it about any delays in the separation process, which involves the transfer of assets such as fibre cable, copper wire, active equipment and international cable to the new entity. It also calls for a robust incident response process to detect and combat malicious attacks.

To address the risk of insider attacks, the separated entity will need to ensure that appropriate measures are in place during the hiring phase for employees, contractors and consultants. The TRA also warns that customer information should not be compromised during the transition. In April, the TRA fined Batelco BHD 37,500 for divulging information about a competitor to a third party. It was also fined in 2009 for preventing other operators from accessing the country’s international data lines. – Telecom Paper

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