2013-10-09 11:22:21 - Recently published research from Business Monitor International, "Oman Telecommunications Report Q4 2013", is now available at Fast Market Research
Oman's telecoms markets continued to expand, even as penetration rates have risen, underpinned by demand for higher value services, as well as continued population growth. Broadband growth has been particularly strong, however mobile subscriptions have continued to expand. Meanwhile, fixed-line subscriptions increased in early 2013, in contrast to the majority of neighbouring markets. We attribute this to strong private consumption growth, driven by the Omani government's expansionary budget and increases in public sector wages. While there are a number of positives, the market is limited by the country's small population size and is approaching saturation for some services, notably basic voice (fixed and mobile) services. We therefore expect operators to shift their strategy towards upselling higher value services to existing
customers to sustain revenue growth.
Full Report Details at
- www.fastmr.com/prod/689061_oman_telecommunications_report_q4_201 ..
* We estimate mobile subscriptions increased by 8.2% y-o-y to Q213, reaching a total of 5.401mn and penetration of 148.7%.
* Operator data show monthly blended mobile ARPU decline accelerated in H212 and 2013, with operators under pressure from IP substitution of SMS and voice services.
* The latest TRA data show fixed-line subscriptions increased 12.6% y-o-y to 331,596 in Q113, in contrast with the regional and global trend for fixed-to-mobile substitution.
Key Trends And Developments
Investments in data network infrastructure continue to reshape the market. In July 2013 Omantel announced the expansion of its 4G LTE network across 11 governates, giving 95% of the population access to speeds of up to 100Mbps. The incumbent has also been investing in supporting infrastructure and in May 2013 announced an agreement to build the Bay of Bengal Gateway submarine cable that will link Oman to Singapore, with several landing sites along the route. The submarine cable will expand capacity, as well as improving mantel's ability to service corporate customers.
While data service growth is a boon for operators, there are also examples emerging of the medium term risks associated with a transition to data centric business models. For instance, the latest regulatory data show that SMS volumes have fallen precipitously in Oman, down 47.5% y-o-y to Q113. This is a result of smartphone users shifting to IP alternatives to SMS such as WhatsApp, Viber and Facebook Messenger - which will squeeze operator revenues and margins. Based on the experience of operators in developed markets, there is little prospect of a reversal of this trend, barring the intervention of the regulator to ban IP substitutes to protect government owned operators as was the case in neighbouring Saudi Arabia. Promisingly for Oman's business environment, but not its operators, the TRA moved to deny rumours it would impose such a ban in August 2013, albeit without a full denial of the prospect of introducing the ban in future.
At one of the market operators are investing in higher value services, but the Telecommunications Regulatory Authority (TRA) secured an agreement with Omantel and Nawras in February 2013 to ensure rural communities are not excluded from mobile service access. Under the initiative the two operators will extend services to underserved and rural areas by constructing around 200 new base transceiver stations (BTS) to provide coverage to 250 villages in remote parts of Oman.
Partial Table of Contents:
BMI Industry View
- BMI Industry View
- Business Environment
- Table: Telecoms Sector - Mobile - Historical Data And Forecast
- Table: Telecoms Sector - ARPU - Historical Data And Forecast
- Fixed Line
- Table: Telecoms Sector - Fixed Line - Historical Data And Forecast
- Table: Telecoms Sector - Internet - Historical Data And Forecasts
Industry Risk Reward Ratings
- MENA Risk/Reward Ratings
- Table: MENA Risk/Rewards Ratings, Q413
- Regional Perspective
- Table: Oman Mobile Market Regional Comparison, 2012
- Key Developments
- Mobile Growth
- Market Shares
- Mobile Content
- Mobile Operator Data
- Table: Omani Mobile Market Overview
- Table: Omantel
- Table: Nawras
- Table: Resellers
- MENA Mobile Content
- Data Networks And Devices Drive Mobile VAS
- OTT Services Increase
- Operators Give Competition A Go
- M-Commerce Takes Off
- Operators Look To Non-Voice Corporate Solutions
- Fixed Line
- Table: Oman Fixed-Line Market, 2011-2013
- Table: Oman Fixed Broadband Speeds, March 2013
- International Bandwidth Capacity
Industry Trends And Developments
- Industry Trends And Developments
- Table: Wireline Contract Wins
- Table: Mobile Contract Wins
- Table: VAS Timeline
- Regulatory Development
- Table: Oman Regulatory Bodies And Their Responsibilities
- Competitive Landscape
- Table: Key Players: Omani Telecoms Sector
- Table: Omani Financial Indicators
- Nawras Telecom
- Diversified Portfolio Key To Ericsson's Regional Outperformance
- Table: Selected Ericsson Activities In MENA
- Oman Demographic Data
- Table: Oman's Population By Age Group, 1990-2020 ('000)
- Table: Oman's Population By Age Group, 1990-2020 (% of total)
- Table: Oman's Key Population Ratios, 1990-2020
- Table: Oman's Rural And Urban Population, 1990-2020
Full Table of Contents is available at:
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com
or call us at 1.800.844.8156.