MUSCAT: The Telecommunications Regulatory Authority (TRA) in Oman has introduced new regulations aimed at balancing competition with the financial sustainability of the telecom sector. These changes come amid concerns that aggressive promotional campaigns could negatively impact industry revenues and long-term investments in network infrastructure. The updated framework follows consultations with major providers including Omantel, Ooredoo, Vodafone, Awasr, and Majan Telecom, ensuring that the rules reflect industry realities while promoting responsible competition.
Under the new regulations, the TRA will closely monitor price trends and intervene if service prices drop by more than 10 percent within six months or if average revenue per user falls by more than 5 percent. Operators with significant market power, such as Omantel, may need prior approval before making further price adjustments. The measures aim to prevent disruptive price wars while maintaining fair market dynamics, protecting smaller operators from undue financial pressure, and ensuring long-term sector stability.
The rules also impose stricter limits on promotional campaigns, including a maximum of four offers per service over six months, each lasting no more than 60 days. Only recently active subscribers are eligible, contract lengths cannot exceed 12 months, and discounted packages may only cover 5 percent of a provider’s customer base. Additionally, the TRA may enforce a three-month cooling-off period if it detects price war behavior, temporarily prohibiting new promotions to allow the market to stabilize.
The framework empowers the TRA to assess the competitive impact of promotions and take corrective action if any offer causes significant financial harm to other operators. While government agencies and small businesses remain eligible for tenders, operators are now required to maintain careful oversight of promotional campaigns to ensure they do not compromise industry health. The TRA emphasized that the regulations will be regularly reviewed and updated to reflect market shifts and technological developments, reinforcing a competitive yet sustainable telecom environment in Oman.
