Oman Telecommunication Company

Masters
Case Study
Business
Pages 8 (2008 words)
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Oman Telecommunication Company (Omantel) has been the sultanate's principal telecom service provider for decades now. Formerly it was entirely state controlled but after Oman's accession to WTO in 2001, Government control has been slackened and finally the privatization is on the cards.

Introduction

There is a 49%cap on foreign ownership in Omantel.However no single party can hold more that 5% of the company's shares currently.
The telecom landscape is primarily dominated by the state owned incumbent operator Oman Telecommunication Company (Omantel) It is the sole licensed operator of public fixed lines, telecommunication services including local, long distance and international telephony besides data communication and value added services, dominates the telecom landscape in Oman. It has launched its digital cellular network in 1996 and was the only mobile service provider in Oman until 2005, when new entrant Nawras telecom forayed into the market.Nawras won the tender for a second cellular license in June 2004 and received it in Feb 2005.Omantel's cellular subsidiary, Oman Mobile was given a the formal cellular license in Feb 2004.Both the players operate in the cellular market under a three year period of exclusivity that will expire next year. For the year ending Jan 2006,there were an estimated 1,78,000 internet users in the sultanate, out of which a vast majority accounted for Omantel's subscriptions.Howver since it's launch in March 2006,second mobile license holder Nawras has claimed 20% of the market share and has added over 3,00,000 new subscribers
In the current scenario, there is no schedule for awarding the third generation (3G) universal mobile telecommunication system (WMTS ...
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There is a 49%cap on foreign ownership in Omantel.However no single party can hold more that 5% of the company's shares currently.…