Batelco

Batelco's plan of destruction

Batelco used to be the only telephone company in Bahrain. The people of Bahrain were solely dependent on the them for services like the internet and telephone lines. So this implied that Batelco was cashing in pure profits since it was the only provider of these services and there were no competitors to compete against them.

However, things changed when MTC Vodafone entered the market. Although MTC provided only telephone services, at the same time it provided many facilities to those that will join there company. Thus, many people were eager to join the new company due to the many services that it provided. This was a major blow to Batelco since now it had to wake up from its fantasy world and enter into the real market and face the competition.

Many people left Batelco and joined MTC whereas others stayed loyal to Batelco. Now all that has been said is fine and dandy, but to me I believe that Batelco did not like the idea of losing a million or two, so they decided to capitalize on the thing that MTC doesn't provide which is the Internet.

Since Batelco is a governmentally owned company, they should be thinking of satisfying the people and not there pockets. To show how selfish they are, the following is a break down of how much profit Batelco has received from 1996 to the first quarter of 2006:

BD (millions) Revenue Net profit
1996 102 28
1997 114 32
1998 132 43
1999 142 48
2000 152 53
2001 171 54
2002 186 58
2003 192 61
2004 204 83

2005 226 89

2006 (1st Qtr) 53 23.2
Batelco made revenue of 1.674 BILLION Bahrain Dinars, that's about US$4.440 BILLION. That made them a profit of BD 0.572 BILLION in pure, net, profit. That is equal to US$ 1 ...
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