rd Further to your TeleFax Ref DM -192 of the 3 of Aug 2004, we have the following regulatory principles that we consider essential in the promotion of low cost broadband and internet connectivity:1- Allow voice over IP to be offered, and encourage the entry of operators using such business models, enabling what many perceive to be a killer application 2- Mandate the availability of some form of unbundling, especially bitstream access, based on economic costing principles to encourage supply of broadband 3- Ensure the reliance of international connectivity from the incumbent is limited by either making available international capacity at cost or creating a local not for profit internet exchange. 4- Engage the incumbent to offer innovative solutions in collaboration with local communities, where otherwise these communities would remain un served. Kind Regards Munther Z. Borgan Director of Market Operations Telecommunications Regulatory Authority, PO Box 10353, Manama, Kingdom of Bahrain. Telephone: +973 17 540 120 Fax: +973 17 532 125 www.tra.org.bh