The privatisation and liberalisation of telecommunications in Bahrain.

Many countries have attempted telecommunications liberalization and privatization using different policy approaches, resulting in varying degrees and types of success. This thesis examines the impact and implications of telecommunications liberalization and privatization in the Kingdom of Bahrain. This research demonstrates that properly restructuring competition into the telecommunications market can promote the economic goals of the government such as increasing the private sector participation in the sustainable development of a modernised economy. This study has shown that there is a direct correlation between the competitiveness of telecommunications market and the level of ICT infrastructure investment in that market, with both of these factors contributing to the competitive ability of that nation to attract multinational companies to set up their business. While there are positive results emerging from Bahrain's overall privatization and liberalization reforms, a major weakness noticed relate to market regulation. The most important factor required for the effectiveness of a regulator in telecommunications market is the transparency with which that regulator conducts itself. Due to the lack of transparency, the independence of Bahrain Telecommunications Regulatory Authority appears to be in question. This study found that even after five years after the market in Bahrain was "liberalised", there is still only one effective competitor to the incumbent monopoly telecommunications operator, and that the competition is solely in the provision of mobile service. The methodologies used in this thesis include documentary evidence, interviews with policy makers, industry players, and international organizations linked to telecommunications. In the absence of adequate data on the liberalization of monopolistic practices in the Gulf States, views of representative of customers, government policy makers, the regulatory body and the media are sought. The government policy makers are of the view that the role of the government in a liberalization process should be that of a facilitator and regulator rather than service provider and innovator. However, this research reveals that the Bahrain regulatory authority has not paid much attention to facilitate competition. The customer survey indicates that there is a lack of momentum intelecommunications liberalization process in Bahrain. It was observed that the very structure of the Bahrain telecommunications liberalization model was not designed to promote competition and facilitate new entrants into the market. The alternative model prescribed in this thesis is designed to overcome the weakness noticed in the market regulation and provide the required impetus for achieving sustainable economic growth through liberalization.