Oman Telecommunication Company Case Study Example | Topics and Well Written Essays - 2000 words

Oman Telecommunication Company - Case Study ExampleThere is a 49%cap on foreign ownership in Omantel.However no single party nominate hold more that 5% of the companys lucks currently.The telecommunication landscape is primarily dominated by the state have incumbent operator Oman Telecommunication Company (Omantel) It is the sole freedomd operator of public fixed lines, telecommunication services including local, long distance and inter bailiwick 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 supplier in Oman until 2005, when new entrant Nawras telecom forayed into the market place.Nawras won the tender for a indorsement cellular authorize in June 2004 and received it in Feb 2005.Omantels 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 yea r stream 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 coarse majority accounted for Omantels subscriptions.Howver since its launch in March 2006,second mobile license holder Nawras has claimed 20% of the market sh ar and has added over 3,00,000 new subscribersIn the current scenario, there is no schedule for awarding the third contemporaries (3G) universal mobile telecommunication system (WMTS... The Telecommunication Regulatory Authority(TRA)expects to license a second national public fixed line network operator as well as a second national public data operator in the near future but has not til now set a schedule for the endowment of the license.Market Potential.Statistics from the Telecommunication Regulatory Authority reveal the fol crushedingMobile phone subscriptions 1.5 millionFixed phone lines 2, 69,000.Out of this Omantels subscriber base amounted to 1.242 million (all services) in June 2005.For mobile services its market share was a staggering 91.7% for the same period.There has been a evidential rise in the number of internet users, yet the penetration rates in Oman are low compared to other domains in GCC. Most of the internet users are concentrated in and around the capital region of Muscat. Despite persistent attempts, little progress has been made in other parts of the country, particularly in regard to the access of high-speed ADSL services. Therefore, it maybe inferred that there is a lot of untapped market probable in Oman. The Arab Advisors group forecasts that by the end of 2009 increased penetration figures, greater account usage and multiplier factor ratios might account for as many as 5,08,000 internet users in the sultanate. The installation and access charges are plunging, therefore the internet and data services market is promising.In recent times, Nawras has introduced wireless EDGE wideband services. High-end business users constitute a major chunk of the clientele, but it is a small segment of the market and nearing saturation. In this context, the under twenty-five market segment is likely to drive growth. In markets like atomic number 63 and East Asia