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Omantel sees renting network space as 'win-win'

MVNOs targeting other segments of market, such as low income expats - CEO

Competition from the two telecoms companies that are renting space off Omantel's network has been in line with expectations, the firm's CEO said on Monday.

Amer Al Rawas said that the two mobile virtual network operators (MVNOs) that had been working off its network for the past year had targetted specific segments of the market as expected.

Al Rawas comments are the first on the situation that saw Omantel ordered by the Gulf state's telecoms regulator in July 2008 to allow Majan Telecommunications and Dubai-based Friendi Mobile to rent network space, in a bid to expand services across the country.
 
At the time Majan Telecoms said it would target low income expats and that is what it had done, the firm's CEO confirmed on the sidelines of the MEDCOM 09 conference in Abu Dhabi.
    
“The situation has not diverted from the expectation that we had. It was not done by choice but managed in a way that was a win-win, and so far I believe both parties are winning,” Al Rawas said.
 
“All our marketing promotions were in English and Arabic, but also in Hindi and Malayalam,” said Niklas Nielsen, CEO of Majan, adding that customer services were also provided in the four languages.  

MVNOs provide mobile services without owning any frequency spectrum or telecommunications infrastructure of their own.

Oman Telecommunications Co lost its mobile phone monopoly when Nawras, 70 percent owned by Qatar Telecom, started operations in March 2005.

Friendi, earlier called Moobility Telecom, has set up local operating companies and joint ventures in the Middle East and North Africa.