Telecom Lead Middle East: Omantel and Nawras, the two
integrated telecommunications service providers in the Oman continued to show growth
in terms of revenue as well as subscriber base for the financial year 2011.
However, stiff competition and increase in operating expenses have adversely
impacted profitability of the companies, according to Oman Observer.
According to Al Maha Financial Services’s research
report, Omantel’s revenues grew at 9 percent year-on-year to reach RO 453
million at the end of 2011. The growth was primarily driven by the broadband
and data segment.
Increase in number of mobile subscribers led to growth in
retail mobile revenues, while improved fixed line revenue from its subsidiary,
Worldcall Telecom Limited has also supported the revenue growth.
At the same time, the revenue of Nawras grew at a modest 4 percent annually to
reach RO 197 million. The Internet and data business segment has been the key
driver for the increase in company’s revenues during the year.
The research study revealed that attractive promotions
and innovative offers through large sales and distribution network have
supported Nawras’ revenue growth.
Mobile revenue constituted as high as 94 percent of the
Nawras’ total revenues during FY’11 as compared to 97 percent in 2010. The
fixed line and other revenues’ contribution to the top line has increased from
3 percent in 2010 to 6 percent during 2011.
Nawras witnessed a strong growth in its fixed line
segment as a result of the company’s efforts to expand the fixed network and
introduction of attractive promotional packages.
Nawras, in its first full year of operations in the fixed
line segment, has shown an impressive growth of 82 percent annually to reach RO
11.4 million. At the same time the profitability of the sector has been flat
for the year.
The study further revealed that Omantel strengthened its
market leader position with an increase in its market share from 46 percent in
2010 to 47.4 percent. Oman’s mobile penetration has remained high in line with
those in the Gulf region and during the year 2011 further grew to 173.4 percent
from 171 percent in the previous year.
Mobile broadband penetration reached 77.1 percent at the
end of 2011, whilst fixed Internet penetration recorded at 22.1 percent as at
the end of 2011.
Omantel appoints new COO, CFO
Recently, Omantel appointed Samy Ahmed Al Ghassany
as chief operating officer and Talal Said Al Mamari as chief financial
officer.
editor@telecomlead.com
