The CEO rejects reports claiming that Omantel's mobile tariffs are one of the highest in the world
MUSCAT -- Omantel is planning to roll out new generation Long Term Evolution (LTE) 4G technology that will enable the delivery of wireless broadband at superior speeds. An announcement to this effect was made by Omantel's Chief Executive Officer Dr Amer al Rawas, at an annual Media Day hosted by the telecom operator.
Flanked by his top executives, Dr Al Rawas told representatives of the media that a tender has been floated for the implementation of LTE 4G. He gave no time frame for its roll-out, but said the service would initially support wireless data and eventually cover voice as well. The planned introduction of 4G, the chief executive officer stressed, was further affirmation of Omantel's commitment to the uptake of market-leading telecom technology for the benefit of its subscribers.
Rejecting claims made by some blogs and social media purporting that the majority government-owned operator was still dependent on old technology, he said Omantel had on the contrary a reputation for embracing the market's latest offerings. Starting with the introduction of GSM, the company made successfully migrated to an array of newer mobile technologies, including GRPS, EDGE, WCDMA and HSPDA that supports 3.5G. The operator is now looking at LTE 4G, which will be implemented soon, he added.
Delays in the full implementation of 3.5G mobile technology were primarily linked to inadequate allocation of spectrum, he said, adding that the operator is working with the TRA to address this issue.
Significantly, Omantel has invested in excess of RO 500 million in network infrastructure since it became a joint stock company in 2005, the CEO said. Investments during 2011 totalled around RO 92 million, roughly in line with the operator's commitment to spending around 20 per cent of revenues on new infrastructure. Outlays during 2012 will be roughly in line with this trend, he said.
In preliminary financial results released last Tuesday, the operator announced an 8.6 per cent increase in revenues during 2011, which soared to RO 453 million. Net earnings rose to RO 113 million. The CEO also sought to rebut reports claiming that Omantel's mobile tariffs are "one of the highest in the world".
Omantel's mobile voice calls, which are a major source of revenue for the company, are cheaper than competition, but slightly higher than the GCC average, he said.
Monthly mobile bills average as low as RO 9.700 for Hayyak and postpaid subscribers during 2011, contrary to allegations that subscribers pay an average of RO 70 per month. These figures can be verified from the TRA, he said.
Dr Al Rawas also sought to dismiss suggestions that Omantel's tariffs were uncompetitive. He said the company had made drastic cuts in mobile and international call rates during the last six years. Mobile rates were slashed 40 per cent in 2005, a year before rival Nawras commenced operations, he said. Prices have since dropped a further 39 per cent, while international call rates have slumped 30 per cent during this period, he said.
Asked about excessive roaming charges incurred by subscribers when travelling abroad, he said the blame lay squarely with the overseas operators concerned. "We tend to receive a lot of blame from subscribers especially after they return from trips abroad. But the roaming rate is set by the operator in the host country and not Omantel.
We add a 15 per cent commission only to cover administrative costs. This 15 per cent charge is one of the lowest in the world and is based on a recommendation from the International Telecommunications Union and the GSM Association. Oman and Qatar are the only two countries with the lowest roaming rates."
Citing an example of the exorbitant roaming charges typically set by operators abroad, Dr Al Rawas said an Omantel subscriber returning from a three-day visit to Egypt ran up a staggering RO 2,000 bill in data roaming fees. Data roaming is typically charged at RO 7.3 for 1 MB in Egypt. Downloads in comparison are charged at a mere 5 baisas for 1 MB in Oman, he explained.
Arab telecom authorities, he said, had largely abandoned efforts to come up with a standardised tariff system for roaming in the Middle East. Regional operators, he noted, had cited grossly varying tax regimes, royalty payments, value added taxes, and other factors that made a unified tariff system impractical.
Citing statistics compiled by international telecom bodies, Dr Al Rawas said Internet speeds offered by Omantel were among the fastest in the Gulf region. Only Saudi Arabia and UAE offered faster browsing speeds, he said.
Asked about long-awaited plans for the introduction of Internet telephony, he said the company was working to make it a reality.
Most of our investments are designed to enable communications based on Voice over Internet Protocol (VoIP). But any eventual rollout of VoIP will not be patterned on Skype, he warned.
The latter, he said, had spurned an invitation by the TRA to consider launching Skype services in the Sultanate, citing the small size of the market.
"As for us, we are trying to introduce some VoIP services which we not reveal today, but will use VoIP as the technology," he added.
© Oman Daily Observer 2012
