New phase in fixed lines
The awarding of the second fixed line licence to Nawras signals the end of monopoly in the telecom sector, writes Visvas Paul D Karra

Intense competition for the second integrated fixed line telecommunications licence in the Sultanate of Oman which began in the month of March finally cooled off in November following the Telecommunications Regulatory Authority (TRA) of Oman awarding the licence to Nawras consortium marking the beginning of an exciting and significant phase in the Sultanate’s liberalisation policy of the telecommunications sector.

All round impact
With the licence being granted to Nawras consortium, the monopoly of the state-owned Oman Telecommunications (Omantel) which held sway for more than 20 years will also come to an end. Besides contributing to the advancement of the telecom infrastructure, competition in fixed public telecom services will also support the growth of varied services, particularly in the area of broadband Internet and enhance the quality of services and create new jobs opportunities for Omanis.

In a statement issued on November 18, the TRA said the Integrated Fixed Public Telecommunications Licence in Oman was awarded to Nawras Consortium on condition that it will honour all the obligations specified in the Information Memorandum which comprises of the tender terms and condition relating to the bidding process. In another development, the awarding of the licence to Nawras consortium has jolted the PCCW-Awaser Oman consortium which had originally won the bid for the fixed line services in October and had been given 15 days time to honour its obligation in accordance with the Information Memorandum. When contacted by Oman Economic Review, PCCW, in a terse one line statement said it was disappointed and mystified by the change in decision by TRA.

Meanwhile, Ross Cormack, CEO of Nawras, in his comments to Oman Economic Review said that Nawras is investing millions of dollars over the next few years to provide the latest generation fibre optic backbone and WiMAX wireless access networks across the Sultanate to deliver broadband telecommunications and Internet access and to offer innovative cutting edge IP based media and communication services to consumers, businesses and government. When asked to comment on the way in which Nawras was awarded the fixed line licence after it was first awarded to PCCW-Awaser Oman consortium, Cormack lauded the TRA for its professionalism and said that this only indicates the transparency in the process of granting this fixed line licence.

“Nawras is honoured to have this great opportunity to provide a wide range of innovative services for the people of Oman, which will be carefully designed to meet the requirements of the various market segments,” says Cormack. When asked how different Nawras will be from the incumbent operator, Cormack said Nawras will deliver fixed telecommunications services with its brand values of being caring, excellent and pleasingly different in the same successful way as it has provided mobile services to the Sultanate since 2005. Nawras is planning to employ around 250 people to support the new business, and create an additional 350 jobs in the sales and distribution channels of Nawras and its partners. Nawras plan in the first two years is to roll out its wireless broadband service to five governorates and 14 wilayats by utilising the international experience and expertise of its parent and majority shareholder Q-tel in developing and deploying fixed line and broadband services for the Sultanate.

The licence with the exception of broadband spectrum rights is for a period of 25 years with the ability to renew it on expiry of the original term. Broadband spectrum rights shall be for 15 years with ability to renew for an additional 10 years on expiry of the original term. It is noteworthy that the Sultanate of Oman has a population of around 2.75 million, with fixed-line phone penetration of just 10 per cent and Internet and broadband penetration of only 3 per cent.

Meanwhile, Dr Mohammed bin Ali Al Wahaibi, CEO, Omantel, welcomed the decision of TRA to award the second integrated fixed line public telecommunications licence in the Sultanate to Nawras.

Oman Mobile signs partnership agreements with FRiENDi, Renna

Oman Mobile, the Sultanate’s leading mobile operator, is the first mobile operator to launch mobile resellers in the Middle East. Oman Mobile signed agreements with Majan Telecommunications, (Renna) and FRiENDi Mobile become mobile resellers using Oman Mobile’s network infrastructure. OER had reported this in its November issue. The agreements will enable Renna and FRiENDi Mobile to resell mobile services to customers across the whole country using their own brand and their own marketing and sales channels. Under the terms of the agreements, Renna and FRiENDi Mobile will be able to develop and offer their own services and manage all aspects of relations with their customers including customer care, billing and other after sales support.

Dr Amer Al Rawas Oman Mobile’s managing director expressed his happiness over concluding these two agreements making the Sultanate of Oman the first country in the Middle East to introduce mobile resellers. He pointed out “The agreements with Renna and FRiENDi Mobile are a concrete response from Oman Mobile to the decisions and policies set forth by the government and the Telecommunications Regulatory Authority (TRA). We are implementing this in the public interest and for the best returns for the customers and the society. It also resembles a positive response to the evolving consumer needs and market expectations.”

Niklas Nielsen, Renna CEO, said, “This announcement marks a new milestone in the telecommunications industry in Oman. As the only 100% Omani owned company among those who have been awarded a mobile reseller license from TRA, we are exceptionally proud to be selected as a Mobile Resellers of Oman Mobile services, the Sultanate’s leading mobile operator.”

Antti Arponen, CEO of FRiENDi mobile Oman said: “We at FRiENDi mobile are proud to be launching this exciting new business model in Oman first and then in other markets in the SAMEA region in the months to come. We are extremely satisfied with the signing of this agreement which allows FRiENDi mobile to launch innovative and exciting mobile services in Oman”.

Renna and FRiENDi Mobile have made arrangements with strong partners to secure marketing and distribution assets which will enable them to handle all the critical aspects of a mobile reseller activity.


 

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