Dubai
Oman has become the latest battleground as its Telecommunications Regulatory Authority (TRA) has invited bids for a third mobile network operator.
Etisalat Group has joined the fray, apart from Kuwait’s Zain Group and Saudi Telecom Co (STC).
Oman’s TRA has invited bids from telecom operators in November last year to enhance competition in the mobile telecommunications services market to benefit consumers and boost economic growth.
The shortlist of qualified applications will be announced on August 14, with the winning bid to be announced on September 4.
“Oman might be looking at the third operator to boost the adoption of new technology, both at enterprise and consumer levels, which is not at the same level as in the UAE or Qatar,” Sukhdev Singh, vice-president at market research and analysis services provider AMRB, told Gulf News.
He said that the availability of a range of additional radio spectrum is expected to provide a multitude of mobile telecom services, particularly mobile broadband, to the consumers in Oman.
With a population of about 4.75 million and currently home to two operators — Omantel and Ooredoo Oman — and two mobile virtual network operators — FRiENDi and Renna, is it worth for a third telecom operator?
Singh said that it is a small market but a growing market in the next five to 10 years. No wonder, so many licensees trusted in that market.
“It is a strategic market for regional operators to get into and grow when compared to other markets in the Middle East. It is definitely going to make the market crowded but Oman is one of the major growing markets,” he said.
Oman’s TRA said last year that it was inviting bids for what will be the first mobile network operator license Oman has awarded since Ooredoo Oman, then branded Nawras in Oman, started operations in the country in 2004.
Etisalat said in a statement that the Oman bid is in line with the Group’s expansion strategy considering the market potential and similarities, footprint proximity to its core market, and likely synergies.
Many mobile phone users in Oman had complained about poor internet package offers provided by the telecom companies, high call rates, lack of mobile coverage and blocking of internet calling services (VoIP).
Singh said that an entry of a new telecom operator will bring the prices down as well as increase the quality of the telecom services.
“My guess is that Etisalat will win the bid as it is the most technologically advanced telecom operator in the world,” he said.
