Kalaam Telecom, the first alternative telecommunications provider in Bahrain, today announced that it is acquiring Lightspeed Communications, a subsidiary of Jordan Telecommunications Co. The acquisition makes the company the second-largest Internet Service Provider (ISP) for Fixed Business Broadband in Bahrain. Kalaam has increased its Fixed (wired) Business Broadband market share to 17 percent and now has a cumulative client-base of more than 4,000 customers across all business segments in Bahrain. Over the past eight years, despite the market’s many challenges, Kalaam has been successful in growing its market share in Bahrain. The acquisition of Lightspeed Communications is another major milestone in line with the company’s long term strategic vision.
The announcement of the acquisition was made by Mr. Nezar Mohammed Al Saie, Chairman of Kalaam Telecom, during a press conference held at Bait Al Tijjar at the Bahrain Chamber of Commerce and Industry, following approval from the Telecommunications Regulatory Authority (TRA). This is the first Merger and Acquisition (M&A) transaction in Bahrain’s telecom history, with Kalaam leading this consolidation initiative.
Speaking at the press conference, Al Saie said: “This strategic acquisition of Lightspeed Communications is a significant milestone for Kalaam that demonstrates our commitment to the telecom industry. We have taken the lead in the consolidation process in the country’s telecom industry and reiterate our confidence in the future of Bahrain’s economy. Accelerating our growth plans is a top priority. With the acquisition, Kalaam’s revenues stand to immediately double and provide significant profitability.
This transaction will augment our ability to offer best-in-class products and solutions in Bahrain and allow Kalaam to embark towards realizing our strategic vision to be the leading Internet Service Provider in Bahrain as well as within the next three years, be a major player in the region. By ensuring long-term sustainability, providing excellent services to our customers and strong returns to our shareholders, we look forward to further investment in Bahrain’s telecom sector.”continued on the next page
Veer Passi, CEO of Kalaam Telecom added: “With this acquisition, we believe that Kalaam is on a very successful trajectory. Since 2006, Kalaam has been providing superior service and value to our customers and has created long-standing relationships based on customer satisfaction. This is reflected in the company maintaining a customer retention rate of 98 percent over the past 8 years. We are confident that by integrating our culture, products and consolidating our operations with a professionally-run and profitable company, such as Lightspeed Communications, we can broaden our customer base across all business segments.”
Customers of the new combined entity will include some of the largest blue chip financial institutions and banks, private sector companies, government entities, residential customers and SMEs who will have access to both Lightspeed and Kalaam’s product offerings and excellent dedicated personalized customer service. As a result Kalaam will be able to provide potential and existing customers with the most comprehensive suite of best-in-class products to meet their local and international voice and data telecom needs. Passi expected that there would be a “smooth integration” of the combined businesses.back to AZAQ Subsidiary, JV and Associate Company News