Revenue and Management Discussion
Omantel
Management Discussion & Analysis Report – Year Ended 31st December 2007
The management of Oman Telecommunications Company SAOG (Omantel) is pleased to present to the shareholders of the Company, a detailed report covering analysis on industry structure and development, opportunities and threats, future outlook, risks and concerns, detailed analysis on operational performance and other major activities of the year 2007. BRIEF HISTORY: Omantel is the leading telecom operator in the Sultanate providing Fixed, Mobile and Internet services to corporate, government and residential customers. The company was established in 1980 pursuant to Law No. 43 of 1980 as the General Telecommunications Organization (GTO), and has been a monopoly provider of telecommunications services since then. In view of emerging competition in the mobile market, Omantel Group established Oman Mobile in 2004, as a subsidiary company. Omantel became a publicly listed company in the year 2005 and its shares were listed on July 28th, 2005 in the Muscat Securities Market (MSM). Omantel is currently owned 70% by the government and 30 % by private investors. The sector competition began in March 2005 and the mobile segment was the first one to open up for competition. INDUSTRY STRUCTURE & DEVELOPMENT: Omantel’s main operations are within the telecom market in Oman. The government started implementing the sector liberalization in line with World Trade Organization (WTO) agreement. Beginning March 2005, the industry witnessed competition in the mobile sector through the licensing of a 2nd mobile operator. Currently, two mobile operators have been licensed. The sector liberalization process which began in the Sultanate in year 2005 has gained further momentum in year 2007 with the signing of Free Trade Agreement with United States of America. Telecommunication Regulatory Authority (TRA) has already requested applications from interested parties for the “Resale of mobile calls offered by the
Management Discussion & Analysis Report – Year Ended 31st December 2007
The management of Oman Telecommunications Company SAOG (Omantel) is pleased to present to the shareholders of the Company, a detailed report covering analysis on industry structure and development, opportunities and threats, future outlook, risks and concerns, detailed analysis on operational performance and other major activities of the year 2007. BRIEF HISTORY: Omantel is the leading telecom operator in the Sultanate providing Fixed, Mobile and Internet services to corporate, government and residential customers. The company was established in 1980 pursuant to Law No. 43 of 1980 as the General Telecommunications Organization (GTO), and has been a monopoly provider of telecommunications services since then. In view of emerging competition in the mobile market, Omantel Group established Oman Mobile in 2004, as a subsidiary company. Omantel became a publicly listed company in the year 2005 and its shares were listed on July 28th, 2005 in the Muscat Securities Market (MSM). Omantel is currently owned 70% by the government and 30 % by private investors. The sector competition began in March 2005 and the mobile segment was the first one to open up for competition. INDUSTRY STRUCTURE & DEVELOPMENT: Omantel’s main operations are within the telecom market in Oman. The government started implementing the sector liberalization in line with World Trade Organization (WTO) agreement. Beginning March 2005, the industry witnessed competition in the mobile sector through the licensing of a 2nd mobile operator. Currently, two mobile operators have been licensed. The sector liberalization process which began in the Sultanate in year 2005 has gained further momentum in year 2007 with the signing of Free Trade Agreement with United States of America. Telecommunication Regulatory Authority (TRA) has already requested applications from interested parties for the “Resale of mobile calls offered by the