An Ookla report has indicated that Vodafone, which entered Oman in 2022, has captured 10 percent of the market in terms of subscribers despite competition from Ooredoo and Omantel.
Vodafone’s investments in telecom network, focus on service quality, and marketing strategies have assisted the UK-headquartered operator to attract mobile subscribers in Oman from Ooredoo and Omantel. Vodafone’s subscribers have enhanced their network experience since migrating, Ookla says.
Vodafone Oman focused on offering 5G services and adopted an asset-light business model to compete with Ooredoo and Omantel. Vodafone differentiated itself through pricing, tariff plans, and extensive digital engagement to capture a significant share of the market. Vodafone leads the market with a 4G download speed of 66.40 Mbps in Q3 2024, but it trails in 5G with a speed of 111.21 Mbps.
Vodafone has been the primary beneficiary of customer churn. The majority of new users came from Omantel, indicating Vodafone’s appeal to this customer base.
Churners from Omanel and Ooredoo had mixed network experience after changing operators. Users who left Omantel experienced an improvement in their average download speeds for both 4G and 5G. However, churned 4G users from Ooredoo experienced a speed increase following the transition to a different network, while those on 5G saw their download speed decrease.
Speed matters
Vodafone is leading the market in 4G download speed, reaching 66.40 Mbps in Q3 2024. This surpasses Omantel’s and Ooredoo’s 4G speeds of 52.23 Mbps and 51.04 Mbps, respectively. Vodafone has dominated 4G upload speeds, fluctuating around 15 Mbps, while Omantel and Ooredoo hovered around 11-12 Mbps.
Omantel’s 5G download speed has risen since Q2 2022, peaking at 249.19 Mbps in Q4 2023 before a slight dip to 231.23 Mbps by Q3 2024. Ooredoo’s speed has declined since Q2 2022 to 111.56 Mbps in Q3 2023 before improving to reach 138.92 Mbps in Q3 2024. Vodafone’s 5G download speed began at a high of 160.73 Mbps in Q4 2022 but fell to 111.21 Mbps in Q3 2024.
Vodafone initially led 5G upload speeds, peaking at 59.3 Mbps in Q3 2022. However, upload speeds dropped sharply as the customer base grew before stabilizing at 20.98 Mbps in Q3 2024. This could suggest a strategic decision to prioritize download speeds. Meanwhile, Omantel and Ooredoo have maintained lower, more stable upload speeds, generally below 20 Mbps.
Investment strategy
Vodafone Oman minimized capital expenditure by leasing tower capacity from Oman Tower Company, utilizing Ooredoo’s 4G network, and connecting its sites using fiber lines from Oman Broadband. Vodafone’s entry packages undercut competitors with attractive offerings and followed up with the introduction of the ‘Vodafone Red’ plans.
The company, as part of digital-first strategy, launched the My Vodafone App to streamline onboarding and customer engagement. Social media campaigns and collaborations with local influencers further boosted brand awareness.
Vodafone Oman, as part of its investment strategy, doubled the number of 5G sites from 750 in 2021 to 1,500 by 2023, leading to 120 percent increase in coverage and 175 percent jump in revenue.
Vodafone aims at reaching 30 percent share by 2032 in a market with 134 percent mobile penetration.
Baburajan Kizhakedath
