Oman MobileOman Mobile is preparing to roll out a 3.5G network across the Sultanate in a bid to outpace its competitor, NawrasNawras. On January 21, the mobile operating branch of the national carrier announced it had launched the new network, though the operator will not embark on a nationwide rollout until after it proves satisfactory to a consumer test panel composed of Omani corporations. Following the regional pattern, the Omani telecoms sector is moving steadily towards increased liberalisation and competition.

Currently, the sector is dominated by the national carrier, Oman Telecommunications, which split into two companies in 2004: Oman MobileOman Mobile, which is responsible for all mobile services, and OmantelOmantel, which covers everything else. The third operator -- NawrasNawras -- a joint venture between Qatar Telecom, Danish operator TDC and a number of Omani investors -- was awarded the second global licence last November, in addition to the second mobile operating licence it acquired in 2004.

NawrasNawras' successful bid for a global licence is expected to ratchet up competition in the sector, as it enables NawrasNawras to install its own network infrastructure -- previously, the operator had to rent bandwidth from OmantelOmantel. NawrasNawras, which is perceived to be more technologically advanced than its government-owned competitor, Oman MobileOman Mobile, managed to outpace the national incumbent in terms of growth rate and claimed 44 per cent of the mobile market in 2008. Armed with a new 3.5G network, Oman MobileOman Mobile now seeks to change this dynamic. Otherwise known as high speed downlink packet access (HSDPA), 3.5G technology can provide mobile broadband speeds of up to 7.2Mbps, on par with network capabilities of its European counterparts.

By comparison, NawrasNawras' 3G+ network provides average download speeds of 1Mbps. According to a statement from Oman MobileOman Mobile, the company aimed to significantly upgrade its existing 2.75G network (otherwise known as EDGE), rather than provide incremental improvements. "We did not want to build a network that provided only marginal consumer benefits compared to existing technologies," Amer al Rawas, managing director of Oman MobileOman Mobile, is on record as saying. The company also announced a raft of new services, though it was reticent to give specific details until the network passed final testing by the consumer panel.

Oman MobileOman Mobile's developments are well-timed to buoy the sector as the global economic crisis nips at the Sultanate. In order to support the government's envisaged transition to a knowledge-based society, further development of the telecoms and IT sector is necessary. Two of the biggest challenges facing the industry are a relative lack of coverage outside the Muscat metropolitan area and a lack of consumer knowledge on product offerings. Network roll-outs and increased competition, and thus marketing, will at least partially address these issues.

Compared to its neighbours, Oman has relatively low mobile and Internet penetration rates. The Telecommunications Regulatory Agency (TRA) reports a mobile penetration level of 97 per cent and 3 per cent for internet penetration, though the agency assumes each Internet connection is used by three to four people and so regularly reports a penetration rate of 13-15 per cent. With a high potential for growth and a strong role for the private sector marked, the Oman telecoms sector stands to inculcate a more connected future for the Sultanate.

n Oxford Business Group (OBG) is a global publishing, research and consultancy firm. OBG publishes economic and political intelligence on the markets of the Middle East, Eastern Europe, Africa, and Asia. Through its range of print and online products, OBG offers comprehensive and accurate analysis of political, macroeconomic and sectoral developments, including banking, capital markets, energy, infrastructure, industry and insurance. Written by a team of seasoned analysts, based on the ground for six months, the critically acclaimed series of economic, political and business reports have become the leading source of intelligence on the rapidly developing countries in the regions they cover.

OBG's online economic briefings provide up-to-date in-depth analysis on the issues that matter for thousands of subscribers worldwide. OBG's consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them. In Oman, OBG has a capital market partnership with Al Madina Financial & Investment Services Co, legal analysis partnership with Al Busaidy Mansoor Jamal & Co, and an accountancy partnership with Abu Timam Grant Thornton.

By John Aaron Sussman

© Oman Daily Observer 2009

 

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