Omantel to invest $218.6m in its network in 2012

Omani incumbent plans to invest 20% of its revenue in its network
Omantel plans to step up its investment in Oman in 2012.
Omantel plans to step up its investment in Oman in 2012.

Share

Oman Telecommunications Co (Omantel) has announced plans to invest OR84m ($218.6m) in its network in 2012, according to local media.

The state-backed company said it ploughed a similar amount into the network in 2011, and it wanted to maintain a steady investment going forward, the Muscat Daily reported.

“In 2011, we invested OR84mn in capital investments on the network,” CEO Amer al Rawas said at a press conference.

“In 2012, it will be about the same. We are trying to keep it to 20% of revenue.”

Rawas added that he was not worried about the impact of GCC roaming rates, which were slashed by 50% earlier this month as regulators tried to bring costs in line with those in developed markets.

In Oman, rates were reduced to 106bz/min for calls made within the country visited and 255bz/min for those made to GCC countries.

A report by ratings agency Moody's Investors Service said it expected the measures to have a negative impact on all telecoms operators in the region, resulting in further margin compression in the operators' domestic markets.

But the Omantel CEO said he expected the move to affect other companies more than his own.

“In terms of profitability, companies with call rates that are way above GCC rates will be affected,” he said. “Our rates are closer to GCC rates, so we will be the least affected.”

Omantel was the first telecommunications company to be launched in Oman and is the main provider of internet services in the Gulf state.

The company, which is 70% owned by the government, reported a 10.3% rise in fourth-quarter net profit earlier this month, beating forecasts after its subscriber base grew.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story