HR Training Strategy :: essays research papers

Introduction Since the opening the market of the Bahrain telecommunication industry, it has gone through major structural changes. As with most opening of markets of former public companies, the government wished to see increased efficiency in the service of telecommunication. Nouradeen (2005) By opening the market, the government hoped that the incentive of higher profits would act as a reward for efficiency, meaning that more effort would be made in research and development of new techniques so as to make the service more efficient. In order to pass savings onto the consumer, the telecommunication companies would have to work under certain restrictions imposed by the government and the telecommunication regulator, (TRA), which were designed to prevent private monopolies exploiting the consumer. The aim of this project is to investigate to what extent the industry has changed since these changes were implemented and how the price of telecommunication to consumers has been affected by these changes.   Ã‚  Ã‚  Ã‚  Ã‚   The opening of the market in this industry has seen Two main stages: Firstly, Batelco, a company which was effectively a monopoly ran from the 1960’s until the first step to opening the market in 2003. This stage on the road to opening the market was to introduce competition in direct supply for customers, thus introducing the idea of competition into the industry, allowing a small proportion of the market to be run to a certain extent by the market mechanism. By 2003 the telecommunication company was introduced mtc Vodafone and was set up to provide mobile services for the country. TRA(2003). This effectively meant that in a particular area of service a different company was in a position of to create competition to the sole provider in mobile services. (Which was regulated by the government). Akhbar Alkhaleej (14:2003) The question that I wish to answer is: - To what extent did the restructuring of the telecommunication industry affect the price of telecommunication to consumers and for what reasons did this occur? Economic Concepts The market for telecommunication in the Bahrain has undergone several important structural changes as outlined in the introduction to the coursework. Initially, before opening the market, the telecommunication market was a public monopoly which meant that although it had all of the features of a monopoly it was controlled and owned by the government and thus it was intended to provide the best price for the consumer. However, the idea of opening the market the industry was that the extra competition found in the market would allow the consumer to see a further fall in price, particularly as the competition should have increased finance of research and development and therefore increased efficiency in the market.