The 6th Arab Telecom and Internet Forum 30 May- 1 June, 2004 Sheraton Doha Hotel, Qatar

Batelco Experience -Challenges and Opportunities Mobile Competition Batelco Experience -Challenges and Opportunities SALEH TARRADAH – GM INFORMATION SYSTEMS & BUSINESS ASSURANCE AND ACTING COO SUPPORT

Batelco Experience Since the launch of Mobile Competiton in the Kingdom of Bahrain in December, 2003 Mobile gross revenue was up 36% against plan YTD Apr 04 24.8% year on year jump in 1Q04 net profit Sustained upward rise in the stock price By end of Apr04 Mobile customers grew by 6.5% over Dec03. Post-paid and Prepaid ARPU have increased above target. YTD National and international traffic was up MMS traffic increased by 68% in April 2004 Total SMS traffic in Apr04 was up 5% on previous month. Planning to spend $15M this year to expand Mobile Network Making marketing and brand increasingly important to retain/attract customers

Challenges Ability to get accurate demand forecast for new Mobile Data services Dealing with the high speed programme of Liberalization Ensuring clear regulatory strategy as part of emerging corporate strategy going forward Where Batelco intends to position its business ? –both in terms of where in the value chain it wants to position itself ? – where its capabilities lie, and which customers it should be targeting ? Continuation to develop and refine internal processes and systems Improvement of sales focus. Motivation and retention of key staff. Ensure business plans and forecasts for all services include considerations such as: – Market share loss and Impact of price changes Ensuring quality of service arrangements for new entrants are met to maintain reliability of network in Bahrain.

Regional Mobile Business opportunities Exploiting opportunities provided by Broadband Developing and selling integrated fixed and wireless propositions Delivering scalable propositions to consumers and enterprises Improving service innovation Migrating networks to IP Operating in a broader eco system of partners and suppliers Development of value added services that contribute to earning growth Revising the business structure to deliver services Target customer segments e.g. focus on high value customers

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