BMI View: Oman's telecoms markets are developing rapidly , with demand for data and value added services the fastest area of growth. Wireless data services have seen the strongest growth in terms of dedicated and voice and data subscriptions. Demand for smartphones has boosted subscription growth, while improved international connectivity is at the same time driving down the cost of se rvices and deepening the market T otal subscriptions are also continuing to increase, with opportunities existing due to continued population growth. However, saturation will ultimately be reached over the medium term and we therefore expect operators to shift their strategy towards upselling higher value services to existing customers to sustain revenue growth.
Mobile subscriptions increased to 5.546mn in Q313, a penetration of 153.1%.
Operators are under pressure from IP substitution of SMS services in favour of Whatsapp, Viber and other services. SMS volumes were down 46.7% y-o-y to 566mn in Q213.
Key Trends And Developments
Oman is a relatively liberalised market by regional standards, but it could move even further ahead of its peers with the privatisation of some its stake in incumbent operator Omantel. On September 17 2013, Oman's government announced plans to sell a 19% stake in Omantel, with Bank Muscat advising the sale. The stake is valued at about OMR221mn (US$575mn) based on the company's current market value. The Omani government currently owns a 70% stake in Omantel and would retain a 51% stake in the operator after this round of privatisation. The sale should introduce investment and expertise into the market, which would be particularly beneficial for the development of the wireline segment.
Meanwhile, in the mobile market, operators are facing up to the downside of wireless data service growth, particularly through the proliferation of smartphones. Smartphone users are shifting to IP alternatives to SMS such as WhatsApp, Viber and Facebook...
The Oman Telecommunications Report features Business Monitor International (BMI)'s independent industry forecasts on the future strength of Oman's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.
BMI's Oman Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Oman.
- Benchmark BMI's independent telecoms industry forecasts for Oman to test other views - a key input for successful budgeting and strategic business planning in the Omani telecoms market.
- Target business opportunities and risks in Oman's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Oman.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI's key industry forecasts and views, covering the ICT, fixed-line, mobile (including 3G), internet and broadband markets.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.
Business Environment Ratings
BMI's Telecommunications Business Environment Ratings provides a country-comparative Risk-Reward Ratings index aimed at investors (vendors, operators and suppliers) in the regional telecoms market.
The ratings methodology makes sophisticated use of more than 40 industry, economic and demographic data points.
BMI Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry indicators (see list below) supported by explicit assumptions, plus analysis of key downside risks to the main forecast.
- Fixed-Line Telephony - Telephone lines ('000); telephone lines/100 inhabitants.
- Cellular Telephony - Mobile phone subscribers ('000); mobile phone subscribers/100 inhabitants; mobile phone subscribers/100 fixed line subscribers.
- Internet Markets - Internet users ('000); internet users/100 inhabitants; broadband internet subscribers ('000); broadband internet subscribers/100 inhabitants.
Market Data Analysis
Detailed market analysis of the mobile, mobile content, fixed line and internet segments, broken down into:
- Market Data - Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
- Technology/Service Rollout - Analysis of rollout/adoption of new technology, such as 3G, WiMAX, IPTV, pay-TV, LTE and value-added handset services (gaming, music, video, apps etc.).
- Mobile Content - The latest trends in content and services available and being introduced by mobile operators. Including a timeline of all the latest major mobile content developments.
- Company Database - A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).
Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. The latest updates in the market's development and regulatory rulings.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.