Business | Telecoms
Broadband to drive Omantel's growth
Omantel, the leading telecom service provider in Oman, continues to have a positive outlook with new value-added and broadband services driving future growth, according to a study carried out by a research team from Muscat-based Vision Securities, a leading broker at the Muscat Securities Market.
- Staff Report
- Published: 00:04 January 25, 2008
Muscat: Omantel, the leading telecom service provider in Oman, continues to have a positive outlook with new value-added and broadband services driving future growth, according to a study carried out by a research team from Muscat-based Vision Securities, a leading broker at the Muscat Securities Market.
According to the report, Omantel's business fundamentals remain strong with growth in mobile subscriber base, monopoly in fixed line internet market and a healthy balance sheet.
"Omantel's third quarter result last year was above par mainly due to favourable government ruling and partially by strong performance in interconnection revenue," says the report.
The company reported broad based growth with mobile segment revenue increasing 12 per cent year-on-year while fixed line revenue increasing 13 per cent.
The major highlight of the third quarter (2007) result was the announcement of 'Worldcall' acquisition which is expected to garner revenue and be accretive to earnings by 2009.
The report points out muted competition and robust economy could translate into better volume growth and revenue for Omantel. The company is focusing on customer retention and also augmenting revenue by increasing minutes of use, data and content.
OmanMobile is expected to launch its 3G services by the end of this quarter.
"The launch of 3G service should enhance its top line and profit margins," the report speculates.
Again, based on company reports, the actual mobile penetration is around 60-65 per cent, which leaves plenty of space for growth for local telecom players.
However, if Omantel is able to offer bundled services and is able to retain customers, one can expect higher revenues and increase in market share for the company.
In its pursuit to develop country's mobile market and reduce tariff rates, Oman government reduced royalty charges (with retrospective effect from January 2007) on both the telecom companies, Omantel and Nawras.
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