MUSCAT: Eng Omar bin Hamdan al Islamili, Chairman of the Telecommunications Regulatory Authority (TRA), emphasized that the entry of a third operator may have impacted existing providers.

However, he noted that each company’s financial performance should be assessed individually, given that most are publicly listed and their reports are available to the public.

“What matters most to us is ensuring healthy market competition,” he stated.

“The introduction of the third operator has had a positive effect in this regard. Still, we also care deeply about sustainability, which hinges on multiple factors—not just the number of operators. Operational efficiency is equally vital.” The TRA chief also pointed to the importance of consumer pricing.

“At the start of your question, you referenced the issue of profit margins, which is indeed a critical subject. It requires a careful balancing act—maintaining margins while also ensuring affordability.”

When asked if there was a plan to address these concerns, he confirmed: “Yes, we recognize that markets tend to self-correct over time. Yet as you rightly pointed out, sometimes consumers are unable to afford services.

This creates what I call the ‘hammer and anvil’ dilemma: we must strike a balance between offering affordable services and ensuring quality and continuity.”

The Authority, he added, is working closely with entities responsible for competition and pricing to ensure that tariffs remain near actual cost—or even lower in some cases.

“This is a crucial issue, and the TRA is monitoring it continuously.” He further stressed that telecom companies must play a constructive role in driving national economic growth.

“We hope they contribute to solving challenges not only within the telecom sector but across other economic sectors as well. For instance, the growth of tourism is directly linked to the availability of advanced and diverse telecom services.”

He urged telecom companies to diversify their revenue streams beyond traditional services. “This is central to our vision. Profit margins may be affected in the short term, but competition can also serve to enhance those margins over time.”

Addressing the issue of investment, he reiterated the importance of companies committing a fixed percentage of their revenue to capital expenditure.

“Telecom companies are the real developers of the sector through infrastructure projects. The TRA regularly reviews financial reports and data from all telecom operators. A healthy reinvestment rate in this sector typically ranges between 15% and 20%.”

He noted that Oman has reached a reinvestment rate of 28%, reflecting the importance of current investment plans to upgrade network infrastructure and fulfill obligations around advanced technologies like 5G and broadband.

Cooperation continues between telecom companies and the Authority, and at times with the government—such as the initiative launched three years ago that reduced royalty fees on fixed services from 10% to 7%.

“There were clear investment conditions for market players, though some missteps occurred among the three companies involved.

Nevertheless, we believe—as you have also emphasized—that sustainability requires substantial infrastructure and service investments. This level of capital expenditure is essential to guarantee service quality and long-term continuity,” he concluded.

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