TELECOMMUNICATIONS LAWS OF THE WORLD Bahrain Vs Singapore

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TELECOMMUNICATIONS

LAWS OF THE WORLD


Bahrain vs Singapore

Downloaded: 30 May 2022


BAHRAIN SINGAPORE

Last modified 2 December 2019 Last modified 29 April 2020

OVERVIEW OF LEGAL LANDSCAPE OVERVIEW OF LEGAL LANDSCAPE

Bahrain is one of the smaller markets in the Gulf region, With effect from 1 October 2016, the regulatory
with a population of about 1.2 million residents. However landscape changed with the restructuring of the
its proximity to Saudi Arabia (to which it is connected by a Info-communication Development Authority of Singapore
bridge) means that traditionally it has a large volume of (IDA) and the Media Development Authority of Singapore
roaming traffic. (MDA) to form the Info-communications Media
Development Authority of Singapore (IMDA). The IMDA -
Despite its small market size Bahrain has possibly the most alongside accompanying telecommunications legislation
advanced, and liberalised, regulatory regime in the region. and regulation - aims to pave the way for a pro-consumer
and pro-business telecommunications environment within
It currently consists of three mobile operators, two fixed
Singapore.
wireless operators, a number of ISPs and a number of
fixed line operators, the largest of which is the incumbent
Batelco.

KEY TELECOMMUNICATIONS LAWS, KEY TELECOMMUNICATIONS LAWS,


REGULATIONS AND POLICIES REGULATIONS AND POLICIES

Legislative Decree No. 48 of 2002 Promulgating the The Info-Communications Media Development Authority
Telecommunications Law ('Telecoms Law') is the primary Act (No. 22 of 2016) is an Act that establishes and
legislation governing the telecommunications sector in incorporates the IMDA, to provide for its functions and
Bahrain. It established the Telecoms Regulatory Authority powers, and for connected matters. It deals with matters
(TRA) and empowers it to regulate the that include:
telecommunications and information technology sector.
The Telecoms Law also stipulates that the appropriate the establishment, incorporation and constitution
Government Minister must, in consultation with the TRA of IMDA
and on a three-yearly basis, issue a National the functions, duties and powers of IMDA
Telecommunications Plan to be approved by a resolution the staff, finances and assets of IMDA
to be promulgated by the Council of Ministers. The most
Additionally, subsidiary legislation under the
recent National Telecommunications Plan was published in
Info-Communications Media Development Authority Act
2012.
can be found here.
In addition to the above, the TRA has issued various
The Telecommunications Act (Cap. 323) is an Act that
Regulations and documents which provide further
aims to provide for the operation and provision of
guidance on facets of the telecommunications sector in
telecommunication systems and services in Singapore. It
Bahrain. A complete list of these is available on the TRA
deals with matters that include:
website. These include the following:
the licencing of telecoms systems and services and
Position Papers on VoIP 2004 & 2007
the granting of spectrum rights
Guidance Paper on TRA Treatment of the erection, maintenance and repair of telecom
Confidential and Non-Confidential Information installations
IMDA's powers to issue codes of practice,

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2007 standards of performance, directions and advisory
guidelines relating to telecom systems and services
The Guidelines for Telecommunications telecom cable detection work
Infrastructure Deployment 2008 ownership and management controls over
designated telecom Licencees
Bulk Messaging Regulation 2011
offences and penalties relating to telecom systems
Local Loop Unbundling Order 2011 and services

Number Portability Process Specifications 2011 Subsidiary legislation under the Telecommunications Act
can be found here.
Consumer Protection Guidelines 2011
In addition, the IMDA also regulates the provision of
Wholesale Inbound Telecommunications Services postal services and postal systems. While these are
Regulation 2012 typically not categorized as telecommunications, postal
and telecommunications services do fall under the same
Dispute Resolution Guidelines 2014 wider category of communications services.

Guideline for Fines Relating to Articles 35 and 65


of the Telecommunications Law 2014

Future Ex-Ante Market Regulation and Other


Regulatory Measures to Foster a Dynamic Sector
Development 2014 (Draft Report)

REGULATORY BODIES OR REGULATORY BODIES OR


AUTHORITIES AUTHORITIES

Telecommunications Regulatory Authority Infocomm Media Development Authority


of Singapore (IMDA)
Address: 5th Floor, Building No. 852 Road No. 3618 Seef
436, Manama, Kingdom of Bahrain, PO Box 10353 Address: 10 Pasir Panjang Road #03-01, Mapletree
Business City. Singapore 117438
Website: http://www.tra.org.bh/en
Contact Centre: +65 6377 3800
The regulation of the telecommunications and information
technology sector in Bahrain falls under the ambit of the Email: info@imda.gov.sg
Telecommunications Regulatory Authority (TRA). The
TRA was established in 2002 as a 'financially and Website: https://www.imda.gov.sg/
administratively independent juridical entity' with the
power to, inter alia:

Issue regulations, orders and determinations


relating to the telecommunications sector

Approve applications for and issue


Telecommunications Licences and Frequency
Licences

Monitor and investigate compliance with relevant


laws, regulations and licence terms

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TYPES OF TELECOMMUNICATIONS TYPES OF TELECOMMUNICATIONS
ACTIVITIES AND/OR PERSONS WHICH ACTIVITIES AND/OR PERSONS WHICH
ARE SUBJECT TO LEGAL AND ARE SUBJECT TO LEGAL AND
REGULATORY REQUIREMENTS REGULATORY REQUIREMENTS

The Telecoms Law stipulates that a licence is required in Broadly speaking, a telecommunication service is any
order to operate: service for telecommunications but excludes any
broadcasting service. A telecommunication system means
A fixed or mobile telecommunications service any system used or intended to be used for
available to the public telecommunications, including any such system capable of
being used for the operation of any broadcasting service.
Any network permitting the conveyance of
Any person who operates a network or provides a
messages, sound, visual images or signals between
telecommunication service in Singapore must be licensed
defined termination points by wire, radio, optical
and will be regulated by the IMDA. This includes, but is
or other electro-magnetic means using a
not limited to facilities-based operators, service-based
frequency designated for telecommunications use
operators, any parties who establish Very Small Aperture
in the National Frequency Plan
Terminal (VSAT) networks, radio-communications
Provide a telecommunications service stations operators and any parties who works on
telecommunication cable detection works.

OVERVIEW OF CONSENTS, LICENCES OVERVIEW OF CONSENTS, LICENCES


AND AUTHORISATIONS REQUIRED AND AUTHORISATIONS REQUIRED
PRIOR TO THE COMMENCEMENT OF PRIOR TO THE COMMENCEMENT OF
TELECOMMUNICATIONS ACTIVITIES TELECOMMUNICATIONS ACTIVITIES

Licences are generally granted for a period of 15 years and The Info-communication Media Development Authority
renewable for a further 10 years. has the exclusive privilege for the operation and provision
of telecommunication systems and services in Singapore.
Licences that require the use of some form of resource, Under the Telecommunications Act, the IMDA has
such as land, spectrum or numbers are issued as Individual authority to license telecommunication systems and
Licences. Licences that do not require the use of these services.
resources are issued as Class Licences.
There are various licences regulated by IMDA, including
Individual Licences may only be granted on the but not limited to the following:
recommendation of the General Director of the TRA
following ratification by the TRA's Board of Directors. Facilities Based Operators (FBO) licences for
Unless compelling reasons exist, all Individual Licences are holders that intend to deploy telecoms
issued with standard terms. Any entity that directly or infrastructure to provide telecoms services to
indirectly acquires a stake of 5% or more in an Individual other telecoms licence holders or end users. An
licensee must inform the TRA within seven days of the FBO must be individually licensed.
acquisition. Service Based Operators (SBO) licences for
holders that do not intend to deploy telecoms
The TRA issues the following types of Individual Licences: infrastructure, but instead lease telecoms network
elements from FBO licence holders to provide
Mobile Telecommunications Services Licence
telecoms services, or resell telecoms services of
(Note: No further licences of this type are
other telecoms licence holders. A SBO can be
currently available)
individually or class-licensed.
Paging Services Licence

Public Access Mobile Radio Services Licence


In respect of class licences, if an entity resells
International Telecommunications Facilities telecoms services they are automatically class

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Licence licensed under the Broadcasting (Class Licence)
Notification (i.e. without any need to submit a
International Telecommunications Services registration). Such entity is thereafter required to
Licence comply with the licence conditions and the
relevant codes of practice.
National Fixed Services Licence

National Fixed Wireless Services Licecse (Note:


No further licences of this type are currently
available)

Internet Exchange Licence

The TRA issues the following types of Class Licences:

Internet Services Licence

Value Added Services Licence

A list of companies currently holding Bahraini


telecommunications licences can be found here.

DOMICILE RESTRICTIONS PREVENTING DOMICILE RESTRICTIONS PREVENTING


THE OPERATION OF CERTAIN THE OPERATION OF CERTAIN
TELECOMMUNICATIONS ACTIVITIES TELECOMMUNICATIONS ACTIVITIES
BY NON-DOMICILED ENTITIES BY NON-DOMICILED ENTITIES

A licensee must be incorporated in Bahrain or have a In order for a company to be granted an FBO or SBO
registered branch office in Bahrain. licence by the IMDA, the company can be foreign-owned
but must be incorporated under the Singapore Companies
Subject to certain exceptions, substantially all of the Act (cap. 50).
infrastructure and personnel associated with the provision
of the telecommunications service must be located within
Bahrain.

EXISTENCE OF RELEVANT EXISTENCE OF RELEVANT


INTERCONNECTION/ROAMING INTERCONNECTION/ROAMING
REGULATIONS REGULATIONS

The Telecoms Law provides licensees with a right to The Code of Practice for Competition ('Code') (which is
interconnect. Licensees must seek to negotiate, in good found within the Provision of Telecommunication Services
faith, requests for interconnection at any technically 2012) distinguishes between Licensees that are subject to
feasible point. Any party may refer a dispute regarding competitive market forces and Licensees whose conduct is
interconnection or access to the TRA for resolution if no not constrained adequately by competitive market forces.
agreement is reached within one month of the Most Licensees are subject to competitive market forces
commencement of negotiations between the parties. and, therefore, IMDA will impose minimum regulatory
'rules of the road', coupled with the ex post enforcement
The Telecoms Law also stipulates that a licensee adjudged of general prohibitions on anti-competitive conduct, on
by the TRA to have a dominant position in a particular these Licensees. By contrast, where a Licensee’s conduct
telecommunications market must (within three months of is not constrained by competitive market forces, IMDA
such determination and every six months thereafter) will require it to comply with more stringent regulatory
publicise a TRA approved Reference Interconnection requirements (The Code 2.1.2).
Offer (RIO). The terms and conditions of such a RIO must
be 'fair, reasonable and non-discriminatory', and the tariffs Sections 3 through to 7 of the Code impose ex ante

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outlined therein must be based on forward-looking regulatory obligations on Licensees. These include:
incremental costs or benchmarked against tariffs in
comparable telecommunications markets. Interconnection The duty of Licensees to their end users
must be provided to any other operator, if requested, on
The duty of dominant Licensees to provide
the terms and conditions set out in the most recent RIO.
services on just, reasonable and
Licenced operators are also barred from 'materially non-discriminatory terms
preventing, restricting or distorting competition' by either:
Required cooperation amongst Licensees to
Abusing (collectively or independently) a dominant promote competition
market position
Interconnection rules with dominant Licensees
Entering into an agreement or understanding
Infrastructure sharing
which materially prevents, restricts or distorts
competition in the market Sections 8 and 9 of the Code provide a basis for IMDA to
take enforcement action if a Licensee has engaged in
Causing anti-competitive changes in market
conduct that unreasonably restricts, or is likely to
structure (in particular via anti-competitive
unreasonably restrict, competition (ex post enforcement).
mergers and acquisitions)
These include:
The TRA regularly evaluates the market through surveys
Abuse of dominant position and unfair methods of
and reviews, and recently commenced a Strategic Market
competition
Review in December 2014 entitled 'Future Ex-Ante
Market Regulation and Other Regulatory Measures to Agreements involving Licensees that unreasonably
Foster a Dynamic Sector Development'. This review restrict competition
proposes the lifting of ex-ante regulation in all retail
markets. Implementation is to be undertaken in a phased
manner and is stated as being 'subject to the [dominant]
operator first meeting, in practical operational and market
tested terms, prescribed terms and conditions for
fit-for-purpose wholesale products (ie terms and
conditions which allow [other licenced operators] to,
whenever relevant:

Replicate the retail products and services of the


dominant operator in the relevant market(s)

Have access to equivalent products as the


wholesale provider has (eg broadband access and
backhaul fibre for LTE operators)

At the time of drafting this handbook the Strategic Market


Review process was on-going. A copy of the draft
Strategic Market Review can be found here.

TELECOMMUNICATION LAWS AND TELECOMMUNICATION LAWS AND


REGULATIONS AFFECTING REGULATIONS AFFECTING
CONSUMERS CONSUMERS

The Telecoms Law also stipulates that tariffs should be There are no differences between the telecommunication
'fair, reasonable and based upon forward looking costs' laws and regulations applying to the provision of services
and charges the TRA with protecting subscribers and to businesses and those which apply to the provision of
users in respect of: services to consumers.

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The tariffs charged for services

Availability and provision of services

Quality of services

Protection of personal particulars and privacy of


services

Citing these obligations, the TRA issued the Consumer


Protection Guidelines in December 2011. These
guidelines lay out minimum requirements for Standard
Subscriber Agreements and require all licensed operators
to provide users and subscribers with 'clear and
comprehensive information about tariffs, terms and
conditions for available products and services'. It also
imposes, inter alia, the following requirements:

Standard Subscriber Agreements and Codes of


Practice which must be approved by the TRA

All advertisements for services must include tariffs


for premium rate and value-added service

Bills provided by the operator must be clear,


accurate and easily understandable

Enquiries, complaints and problems must be dealt


with fairly, promptly and courteously

Operators must not discriminate between


consumers

These obligations supplement the more general


requirements laid out in Law No. 35 of 2012 Concerning
Consumer Protection.

REGULATORY TAXES AND FEES REGULATORY TAXES AND FEES

Application fees for the various available licences range SBO Class Licence
from BD 1,000 (approx. USD 2,650) for class licences to
BD 35,000 (approx USD 92,850) for certain individual SGD 200 per licence.
licences. Once an entity obtains a licence, it will be
SBO Individual Licence
required to pay the prescribed licence fee to the TRA
(usually set at 1% of the gross annual turnover attributable
SGD 4,000 per annum licensing fee for the first SGD 50
to the licensees activity).
million of the Annual Gross Turnover (AGTO).

There is no corporation tax in Bahrain. However, other


The next SGD 50-100 million in AGTO attracts a fee of
fees may be payable, such as a contribution towards
0.5% of the AGTO.
employees' social security. This may differ depending on
the composition of the company's workforce. Such fees For a company with above SGD 100 million in the AGTO,
must be assessed and advised upon on a case by case basis. there is a licensing fee of 0.8% of the AGTO.

FBO Licence

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SGD 80,000-200,000 licensing fee for the first SGD 50
million of the Annual Gross Turnover (AGTO).

The next SGD 50-100 million in AGTO attracts a fee of


0.8% of the AGTO.

For a company with above SGD 100 million in the AGTO,


there is a licensing fee of 1% of the AGTO.

KEY SANCTIONS AND PENALTIES IN KEY SANCTIONS AND PENALTIES IN


THE CASE OF CONTRAVENTION OF THE CASE OF CONTRAVENTION OF
TELECOMMUNICATIONS LAWS AND TELECOMMUNICATIONS LAWS AND
REGULATIONS REGULATIONS

The Telecoms Law states that any entity which Any person guilty of an offence under the
contravenes the law shall be criminally liable for those Telecommunications Act or any regulations made under it,
actions, most notably, providing telecommunications may be liable on conviction to a fine not exceeding SGD
services without a licence. 10,000, or to imprisonment for a term not exceeding
three years or to both and, in the case of a continuing
The TRA also has powers and responsibilities to ensure offence, to a further fine not exceeding SGD 1,000 for
licensees' compliance with licence conditions and the law. every day or part thereof during which the offence
Under these provisions the TRA is empowered to take continues after conviction.
'the measures it considers necessary to secure compliance
by the licensee'. These measures include:

Directions to refrain from doing certain actions

An order to remedy, prevent or rectify a breach


of the law or licence

The imposition of an appropriate fine

A warning that the licence may be revoked if the


licensee fails to comply with the above

The TRA has issued guidelines which outline the process


for determining the size of the fine to be imposed for
anti-competitive behaviour and breach of licence
conditions. In line with the Telecoms Law, these guidelines
cap any such fine at 10% of the entity's annual revenue.

Before issuing an order, the TRA should inform the


licensee of the details of the impending order and give it
the opportunity to respond within a specified period.
Once an order has been issued the licensee in question
must comply with its requirements within the stipulated
period or face the possible revocation of its licence.
However, a licensee is entitled to appeal any decision or
order that has been issued in its name. This can be done
directly to the TRA or through a statutory arbitration
process. Bahrain is unique amongst the GCC states, in
that its Telecoms Law has a statutory arbitration process
designed to allow operators to challenge TRA decisions.

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KEY CONTACTS KEY CONTACTS

Paul Allen Scott Thiel


Partner, Head of Intellectual Partner
Property and Technology DLA Piper Hong Kong
DLA Piper Middle East LLP T +852 2103 0519
T +971 4 438 6100 scott.thiel@dlapiper.com
paul.allen@dlapiper.com

Eamon Holley
Partner
DLA Piper Middle East LLP
T +971 4 438 6100
eamon.holley@dlapiper.com

Lauren Hurcombe
Senior Associate
T +852 2103 0814
lauren.hurcombe@dlapiper.com

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