Boston, MA -- (SBWIRE) -- 12/31/2013 -- Oman's telecoms markets are developing rapidly with demand for data and value added services the fastest area of growth. Wireless data services have seen the strongest growth in terms of both dedicated and voice and data subscriptions. Demand for smartphones has boosted subscription growth, while improved international connectivity is at the same time driving down the cost of services and deepening the market. Meanwhile, total subscriptions are also continuing to increase, with opportunities existing due to continued population growth. However, saturation will ultimately be reached over the medium term, and we therefore expect operators to shift their strategy towards upselling higher value services to existing customers to sustain revenue growth.

Key Data

- Mobile subscriptions increased by 8.6% year-on-year (y-o-y) to 5.422mn in Q213, equal to penetration of 149.3%.
- Operators are under pressure from IP substitution of SMS services in favour of Whatsapp, Viber and other services. SMS volumes were down 46.7% y-o-y to 566mn in Q213.
- Wireless data subscriptions have continued to expand rapidly, increasing 46.8% y-o-y to 2.075mn at the end of June 2013.

View Full Report Details and Table of Contents

Key Trends And Developments

Oman is a relatively liberalised market by regional standards, but it could move even further ahead of its peers with the privatisation of some its stake in incumbent operator Omantel. On September 17 2013, Oman's government announced plans to sell a 19% stake in Omantel, with Bank Muscat advising the sale. The stake is valued at around OMR221mn (US$575mn) based on the company's current market value. The Omani government currently owns a 70% stake in Omantel and would retain a 51% stake in the operator after this round of privatisation. The sale should introduce investment and expertise into the market, which would be particularly beneficial for the development of the wireline segment.

Meanwhile, in the mobile market, operators are facing up to the downside of wireless data service growth, particularly through the proliferation of smartphones. Smartphone users are shifting to IP alternatives to SMS such as WhatsApp, Viber and Facebook Messenger - which will squeeze operator revenues and margins by decreasing volumes of SMS. The latest regulatory data show that SMS volumes have fallen precipitously in Oman, down 46.7% y-o-y to Q213. Based on the experience of operators in developed markets, there is little prospect of a reversal of this trend, barring the intervention of the regulator to ban IP substitutes to protect government-owned operators as was the case in neighbouring Saudi Arabia.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Fixed Networks research reports at Fast Market Research

You may also be interested in these related reports:

- Iran Telecommunications Report Q1 2014
- Argentina Telecommunications Report Q1 2014
- Bahrain Telecommunications Report Q1 2014
- Greece Telecommunications Report Q1 2014
- Chile Telecommunications Report Q1 2014
- Sri Lanka Telecommunications Report Q1 2014
- Australia Telecommunications Report Q1 2014
- China Telecommunications Report Q1 2014
- Germany Telecommunications Report Q1 2014
- Turkey Telecommunications Report Q1 2014