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Oman - Market Intelligence Report
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Market Intelligence Reports provide an invaluable mix of vital market data and background information, including telecoms regulation. The telecommunications market in Oman is dominated by state-controlled incumbent operator, Oman Telecommunications Company (Omantel). It is the sole licensed operator of public fixed-line telecommunications services, including local, long-distance, and international telephony, as well as data communications, value-added services, and Internet access services. Having launched a digital cellular network in 1996, the company was also the only mobile services provider in Oman until March 2005, when new entrant Nawras Telecom launched its offering. Nawras won a tender for the second cellular licence in June 2004 and received the licence in February 2005. Omantel's cellular subsidiary, Oman Mobile, was given a formal cellular licence in February 2004. Both companies operate in the cellular market under a three-year period of exclusivity that will expire in February 2008. Currently, there is no schedule for the award of third-generation (3G) universal mobile telecommunications system (UMTS) licences in Oman. In the meantime, Oman Mobile is applying for additional 2G frequencies, most likely in the 1800MHz band. Nawras is relying heavily on a nationwide interconnection agreement with Oman Mobile and Omantel, allowing it to serve subscribers in areas of the country where its network has not yet been deployed. In late-2005, Nawras said it had launched 3G-style services over its network. The Telecommunications Regulatory Authority of Oman (TRA) expects to license a second national public fixed-line network operator and a second national public data network operator in "the near future", but has yet to set a schedule for the offering of these licences. It is widely expected that some progress will be made in 2007. As part of its agreement with the World Trade Organization (WTO) concerning the liberalisation of the telecommunications sector, the government of Oman has completed the privatisation of Omantel. A 30% stake in the company was sold on the Omani stock market in June/July 2005, with 9% sold to specific pension and charitable funds. Foreign investors were not able to purchase Omantel shares at that time, but they could do so from the beginning of October 2005. There is a 49% cap on the level of foreign ownership in Omantel, although no single shareholder can presently hold more than 5% of the company's shares.
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