The government is reviewing plans to auction a second licence for GSM services in the sultanate. Under proposals put forward by the newly- formed Oman Telecommunications Regulatory Authority (OTRA), the launch could go ahead as early as the fourth quarter, pending cabinet approval (MEED 30:8:02).

Several international and local operators are understood to have expressed a strong interest in the licence, which would end the present monopoly on mobile services held by Oman Telecommunications Company (Omantel). Oman is obliged under its commitment to the World Trade Organisation to open up its telecoms market by 2005.

The first stage in this process will come in the form of an initial public offering (IPO) for a 20 per cent stake in Omantel, which is wholly owned by the government. The IPO, to take place on the Muscat Securities Market (MSM - stock exchange), is scheduled to take place by the end of the year. A further 10 per cent of the operator's stock will be divested among state pension funds (MEED 11:4:03).

Omantel has installed more than 230,000 fixed lines in the sultanate and has over 320,000 pre-paid and post-paid customers for its GSM services from a total population of almost 2.5 million people. The company is investing heavily in further developing its network by introducing general packet-switched radio services (GPRS) and third- generation (3G) network coverage to the sultanate.

Eight international telecoms consultants are competing for the contract to provide supervisory services for the expansion of Omantel's GSM services. Bids are also due by mid-May for the contract to advise the operator on its future plans for network development.
Copyright: EMAP Business International Ltd. All rights reserved. EMAP Business International Ltd and Quest Information Ltd assume no liability for the consequence of reliance upon any opinion or statement.


Copyright 2003 Janet Matthews Information Services
Quest Economics Database
Middle East Economic Digest


May 9, 2003

Great, finally something is being done about the Omantel monopoly!! For a while I've thought it is an unbreakable monopoly!

do you think its good to have international companies operate GSM services in Oman? or does it not matter whether the operators are local or international?

one more question:

how is this gonna effect Omantel?

well..i think its better to have more than 1 company in oman which operates GSM's as the prices will be lower than now and the companies will compete with each others.

how is this gonna effect Omantel?

Well..if the prices of the new company is lower than omantel then i guess everyone will leave omantel and go for the new prices and this way omantel will be on loss..it will be a very good competetor

I think it's good for the economy. It will create competition which in turn will create better prices, better service, and better meeting of customer expectations. Not to mention it will create jobs.

But over all, I don't think this will change alot, because the monopoly will be turned into an oligopoly. Both Omantel and the new company, will collectively exert control over supply and market prices. I think two companies are not enough to make the monopoly fade a way, the invisible hand of " you are my enemy, but if I can't live without you and I you can't live without me then I will coroporate with you"...

Omantel will be effected of course, but they have no other choice since Oman is obligated by WTO to open up the telecommunication sector by 2005...

interesting.... it was supposed to start at the beginning of this year. So inshallah it starts by next year.

Nice to hear this.

that would be great
then each company will bring new features, and they'll compet in prices and everything

but if we switch to the new company, will out gsm number change???

U must be dreaming. Unless the sponsors of the international company are the same ppl who closed shares of Omantel now ;)

it will happen

my friends brother is now working with a company which are planing to get Ete9alat, Jawal, MTC, Al Wa6aniya and all the others to Oman
all the gulf are going to have the same Phone Opperators

Originally posted by haso0on
it will happen

my friends brother is now working with a company which are planing to get Ete9alat, Jawal, MTC, Al Wa6aniya and all the others to Oman
all the gulf are going to have the same Phone Opperators
at last light in the end of the loong omantel dark tunnel!!!

Hopefully this will bring more work opportunties to our Omanis who are educated and skilled in various things.

Well I will think to sponser a company back in Oman then something like Yes Optus Telecommuications if the government agrees to give me a little loan. Just to start as a franchise as how it started in Australia.

u have a comunication company in australlia ?