Oman Brunei Investment Company has acquired a majority share of Renna Mobile, an Omani based MVNO, by injecting capital into the company. The capital is earmarked for Renna Mobile’s expansion.
Joakim Klingefjord, CEO, Renna Mobile, said: “We have finalised an investment agreement with Oman Brunei Investment Company to secure our growth plans in Oman and beyond.”
He added that OBIC scrutinised several other similar investment opportunities before opting to invest in Renna. “I would like to extend my sincere appreciations to OBIC, TRA, Omantel and other business partners, as well as our invaluable employees, for contributing in various ways to making this deal happen.”
Renna Mobile, which runs an MVNO in Oman on Omantel’s network, has been breaking even since June 2011.
Abeer Mohammed Al Abduwani, CEO, of OBIC said: “We were impressed by Renna Mobile’s operation, and how it has built a strong brand and healthy customer base, while maintaining a very prudent and cost conscious approach to its operations. We are looking forward to support their expansion plans in Oman and abroad, as their new majority shareholder.”
Renna Mobile launched its operation in Oman in May 2009 after having secured an MVNO agreement with Omantel and a license from Oman’s TRA.
Renna Mobile competes with Omantel, Nawras, and rival MVNO, Friendi Mobile. Friendi, which is part of Virgin Mobile MEA, now has about 400,000 subscribers in Oman, giving it a market share of more than 8%.
MVNOs are becoming an increasingly common part of the region’s telecoms sector. Oman was the first country in the Middle East to award MVNO licences back in 2008. Jordan followed, awarding a licence to Friendi Group, which launched services on the network of Zain Jordan in 2010.
Saudi Arabia is also due to award three MVNO licences this year.