Industry Trend Analysis - Major Players Bid For Bold Entry - JUNE 2017

BMI View: Prospective entrants to Oman ' s mobile market will have to employ innovative strategies to achieve growth in a saturated market. Even with expertise in the MENA region, Zain and Etisalat will have to cater to particular segments in order to attract customers and remain profitable.

Bids for Oman's third mobile operator licence have begun. Zain Group and Emirates Telecommuni cations Corporation ( Etisalat), two major players in the MENA region, have submitted their formal bids along with comprehensive business plans. Oman's Telecommunications Regulation Authority will announce a short list of qualified applicants on August 14 2017, with the winning applicant to be revealed in September. Although there is strong interest in the licence, the new player will have to work hard to repay investment.

We expect little growth in Oman's mobile market, even with a new entrant. Two operators and several MNVOs leave no room for organic growth. Furthermore, ARPUs are being eroded as MNVOs exert pressure on prices in a largely prepaid market. This has forced Omantel and Ooredoo to shift their strategy towards more complex and bundled services, deepening relationships with customers. Success on this front has been moderate. On the other hand there are still significant growth prospects in 3G/4G upgrades, and opportunities in B2B solutions.

Some Opportunities In Saturated Market
3G/4G Subscription Growth
f= BMI forecast. Source: BMI, operators, TRA

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