Bahrain’s leading telecom company Batelco has been officially split into two entities. The two companies came into existence today. One company deals with the national broadband infrastructure and the other deals with enterprise and retail operations, the Middle Eastern media reported.
The new national broadband infrastructure company will create a fibre optic network to provide residents all over the country with high-speed internet access. Mohamed Bubashait will be the CEO of the new Infrastructure Company for National Broadband. Mikkel Vinter will be the chief executive of Batelco Bahrain, the entity running the retail and enterprise operations.
The Kingdom of Bahrain hopes to boost its digital economy and enhance its stature as a strategic investment destination as well as a regional hub for trade and information and communications technology, with the Batelco split.
Both the companies will remain under the control of Bahrain’s telecom major Batelco after the split. Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa confirmed the legal separation of the companies at a press conference led by Transportation and Telecommunications Minister Engineer Kamal Bin Ahmed Mohamed. Shaikh Abdulla also confirmed the restructuring of the executive management teams, separation of operations systems, and human resources.
The splitting of Batelco is in line with the Kingdom’s fourth national telecommunications plan (NTP4). It is also in line with the Bahrain government’s Economic Vision 2030.
“It is a priority for the board of directors to achieve the highest possible returns as well as enriching future returns, and ensuring the continuous and sustainable success of the company in the long run.
“We also want to confirm that the restructuring of the company, as part of the NTP4, is going to create new horizons for Batelco and opportunities to invest in digital technology and furthermore, create new and diverse revenue streams which is in line with the kingdom’s vision for the growth of the digital economy,” Shaikh Abdulla was reported as saying.