Business | Telecoms
Oman invites bids for new phone firm
Oman further stepped up liberalisation of its telecommunication sector by inviting telecom companies to submit proposals for the Class One licence to offer integrated fixed-line telephone services, including radio spectrum for broadband access, submarine cable and a landing station in the country.
- By Sunil K. Vaidya, Bureau Chief
- Published: 23:22 August 11, 2008
- Oman has invited bids for integrated fixed-line telephone service, including radio spectrum for broadband access, submarine cable and a landing station.
- No Omani partner is required for the bidder, i.e. 100 per cent foreign investment is acceptable from new bidder.
- Two weeks time is given to submit the proposal.
- No association is permitted for the new bidder with Omantel, the incumbent provider of fixed telecommunications services in the country.
- Bids close on August 25, 5pm Oman time.
- The proposed license, with exception of broadband, is for a period of 25 years with the ability to review it on expiry of the original term.Broadband spectrum rights shall be for 15 years with ability to renew for an additional 10 years.
Muscat: Oman further stepped up liberalisation of its telecommunication sector by inviting telecom companies to submit proposals for the Class One licence to offer integrated fixed-line telephone services, including radio spectrum for broadband access, submarine cable and a landing station in the country.
Telecommunications Regulatory Authority (TRA) member Naashiah Bint Saud Al Kharusi told media yesterday that all interested parties have been advised to send their proposals with complete bid before August 25 (5pm Oman time).
However, an industry expert, who preferred not to be quoted, said that the timeframe of 15 days to submit proposal was a bit too short. "It is difficult to string together such wide ranging proposal in such a short time period," he said, adding that even the cost would be very high.
The bids are invited from telecom operators or consortiums but Al Kharusi stressed: "The bidders must have no association with Oman Telecommunications Company (Omantel)." Omantel, a government owned company, has the monopoly over fixed-line telephone services in the country.
"We are here to protect consumers' interest and therefore the sector has been opened for competition," she said. According to the TRA member, ten top bidders would be short listed and would be invited for the auction.
"The process of bidding and auction would end by the end of October of the beginning of November," he said in reply to a question.
"The opportunity for new operator is attractive looking at the current penetration level in the country," she said.
However, with Oman's difficult mountainous terrain, it would be a tough task for the new operator to penetrate new areas. "Initially the new operator can lease facilities from Omantel but we would progressively like the new operator to have their own infrastructure," she said.
Al Kharusi announced that the pre-qualification criteria for the second licence includes potential bidders to have at least 300,000 active fixed subscribers in operation for at least two years and operators must have net assets in excess of $200 million.
She said the new operator will provide all kinds of facilities that Omantel is currently enjoying.
Intergrated facilities
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