The mobile telecom sector in Oman has entered a brave, new, and fully liberalised era with the recent entry of two mobile virtual network operators (MVNO) FRiENDi Oman and Majan Telecom which owns Renna brand in the cellular market apart from the two existing mobile network operators (MNOs) Oman Mobile and Nawras. More MVNOs are waiting on the wings to start operation.

The coming days will witness greater competition in the market. Despite the global economic slowdown, everybody in the mobile telecom sector in the Sultanate is excited and has a positive view on the future competition. Mobile tariff rates are likely to come down in the coming days. International calls and SMS services may become cheaper. Best international practices in the telecom sector will be implemented in the country. The result will be a win-win situation for all including host operators, MVNOs and customers.

Now onwards the competition among various leading players in the mobile telecom sector will be service based rather than network based. The industry has surely grown in tune with the vision of the Telecom Regulatory Authority, Oman to develop industry through a market driven environment.

“We take a positive view on competition; we have signed agreements with two MVNOs so that they can use our network,” said Dr Amer Al Rawas, CEO of Omantel on the emerging scenario in the mobile telecom sector, in an exclusive interview to Oman Oman Vistas. “The new changes in the industry will result in greater competition and will drive companies to take proactive measures to deliver products and services,” said Niklas Nielsen, CEO of Majan Telecom in another xclusive interview to manVistas.

“We have respect for the entry of additional competition in the market through resellers, we do not fear it,” said Ross Cormack, CEO of Nawras
on the emerging scenario in an exclusive chat to Oman Vistas. He also expressed confidence that that his company’s customer base will only increase. Delineating their strategies to Oman Vistas, Antti Arponen CEO of FRiENDi Oman said “the company
offers users services in six languages including Malayalam, Hindi, Urdu and Bengali.” The company will lay special emphasis on service to those who make international calls and SMSes.

The growth of telecom industry in the Sultanate in the last few years has been phenomenal. Almost all of the populated areas in the country have come under mobile network. Stateof- the-art technologies including mobile broad band and 3G services
are available to users. The country has a mobile penetration level of 122 per cent as on March 2009 compared to less than 35 per cent four years back.

The entry of MVNOs in the field signals the new phase in the development of telecom industry. Signing up with resellers is a new way to grow for existing mobile operators. It is to be noted that Oman is the first country in the region to introduce the business model of MVNO. The outcome is being eagerly watched across the region.

The emerging scenario is sure to bring multiple benefits to all types of customers. Facility for recharging at a larger number of destinations and number portability which allows users to retain their number even while changing operators have already
placed users in an advantageous position. The mobile operators have also revealed plans to attract expatriate population in the Sultanate.

Instead of hoping to cut into others’ market share, the mobile operators are expecting users to own multiple sims in the coming days. Industry analysts are of the view that the mobile penetration in the country will reach the level of two sim cards per user in
the coming couple of years.

The Telecom Market Statistics Report Q1, 2009 published by the Telecom Regulatory Authority (TRA), Oman notes that the total mobile subscriber base in the Sultanate registered a healthy growth of 4.2 per cent in first quarter of 2009 compared to last quarter of 2008. The total revenue of mobile companies also increased in the first quarter of this year by 1.03 per cent.

Broadband service is a sector which offers immense potential for telecom operators for development. Broadband connections in the Sultanate grew by 5.5 per cent in the first quarter of the year. At the same time the average revenue per user per month (ARPU) registered by the mobile telephone sector has decreased in Q1 2009. The coming days will offer immense opportunities and challenges to companies. There is possibility of consolidation in the sector in the near future. One thing beyond doubt is that the customer is going to call the shots in the near future.

The emerging scenario is sure to bring multiple benefits to all types of customers. Facility for
recharging at a larger number of destinations and number portability which allows users to retain their number even while changing operators have already placed users in an advantageous position.