MUSCAT, SEPT 15 - There is growing anticipation that the newly announced third telecom operator, anchored by global heavyweight Vodafone, will bring about a seismic shift in the Sultanate’s telecom industry when commercial services are launched in the second half of next year. The transformational impacts, according to experts, will come not only in the form of cutting-edge technologies and services, but also competitive tariffs and enhanced quality-of-service standards.
Ranked among the Top 5 Telecom companies worldwide, with a presence on the coveted Fortune Global 500 Top listing as well, Vodafone Group’s imminent arrival in Oman not only bodes well for the healthy growth of the telecom sector, but is also expected to add to the Sultanate’s cachet as an investment destination in its own right.
The Group, with its 650 million subscribers worldwide, achieved revenues of around 46 billion euros last year, and has ambitious plans to invest in gigabit networks, the Internet of Things (‘IoT’) and mobile financial services to connect a further 350 million people by 2025.
According to a source at Oman Future Telecommunications (OFT), the third telecom licensee which announced a partnership with Vodafone Group, the latter was selected after an intensive review of key players operating in the global telecom industry.
“We looked at a number of possible vendors and finally worked on a shortlist of four players. Vodafone Group eventually emerged as our partner of choice,” the source told the Observer.
Playing a pivotal role in the selection process was Itqan Tech Development, a local Omani tech firm specialising in Information & Communications Technology (ICT) projects and services. Itqan represents the shareholding of Oman 70 Holding, which is a primary shareholder in Oman Future Telecommunications (OFT). Private investors comprise around 45 per cent of OFT’s equity, while the balance 55 per cent is made up of Omani pension funds.
“Since the announcement by the government last year that the third telecom operator would be an Omani consortium, Itqan worked on this opportunity to finalise the license with the Telecom Regulatory Authority (TRA), as well as meet the government’s licence criteria. Itqan also set up the relationship with the vendor, Vodafone, and worked on finalising the agreement. These efforts culminated in the establishment of Oman Future Telecommunications (OFT), which is now taking the process forward as the third telecom operator.”
Iqtan Tech Development, a wholly owned subsidiary of Oman 70 Holding (a well-diversified Omani business house), has undertaken a number of ICT projects for government and public sector organisations.
Oman’s eventual addition to Vodafone’s expanding footprint in the Middle East augurs well for the growth of telecom services in the Sultanate, the source pointed out.
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