Deadline for Batelco to split company into two separate entities
TELECOM firm Batelco has been set a September 6 deadline to submit its plan for splitting the company into two separate entities, a move designed to end its broadband monopoly.
Other deadlines related to licences, asset allocation, a cyber security plan and organisational structure have also been put in place between now and next February.
The deadlines have been imposed by the Telecommunications Regulatory Authority (TRA), which is overseeing the restructuring.
It is designed 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 fibre-optics network.
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.
“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 Internet Service Provider (ISP) offering broadband packages on the fibre-optics network, 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.
“The authority expects that assets will be transferred from Batelco to the SE at their net book value for the purpose of financial reporting,” states the TRA guideline.
“Batelco will be required to submit a security management plan in its undertakings.”
The security plan is specifically geared towards ensuring network security, including the prevention of data breach by insiders.
“The authority requires that the SE implements necessary security controls to mitigate the risks of cyber attacks, including the establishment of a secure and resilient cyber security architecture in which the SE operates and offers its service,” states the TRA document.
It also calls for a robust incident response process to detect and combat malicious attacks.
“To address the risk of insider attack, the SE will need to ensure that appropriate measures are in place both during the hiring phase when introducing new employees, contractors and consultants to the SE,” adds the TRA, which also warns that customer information should not be compromised during the transition.
In April, the TRA fined Batelco BD37,500 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.
At the time of the 2009 fine, Batelco had refused to allow other operators access to the landing station for a submarine cable, Bahrain’s only connection to international telecommunications networks, which was located on its premises.
The new entity created by separation of Batelco will operate Batelco officials could not be reached for comment yesterday.
