Oman opens telecom sector, accepts bids for fixed-line services

Muscat, Oman: Muscat Oman further stepped up liberalisation of its telecommunication sector by inviting telecom companies to submit proposals for the Class One license to offer integrated fixed-line telephone services, including radio spectrum for broadband access, submarine cable and a landing station in the country.

A Telecommunications Regulator Authority (TRA) member, Naashiah Bint Saud Al Kharusi, told media on Monday that all interested parties have been advised to send their proposal with complete bid before August 25 (5pm Oman time).

However, an industry expert, who preferred not to be quoted, said that the time frame 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 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 therefore the sector has been opened for competition," she said. Ten top bidders will be short-listed and invited for the auction.

"The process of bidding and auction will end by late October or the beginning of November," he said in reply to a question.

However, with Oman's difficult mountainous terrain, it will 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 pointed out.