MUSCAT: The Telecommunications Regulatory Authority (TRA) of Oman has officially unified the annual royalty rate across all licensed telecom operators in the country, setting a standard 10% fee for both mobile and fixed service providers of all categories. The announcement, disclosed by Omantel and Ooredoo through the Muscat Stock Exchange, is expected to streamline the sector’s regulatory framework and reduce financial discrepancies that previously existed among operators due to varying historical rates. The move is seen as a significant regulatory reform to enhance competitiveness and transparency in the telecommunications industry.
Omantel and Ooredoo are among the first to publicly disclose the positive financial implications of the new royalty framework. Omantel estimates that the unified rate will lead to an increase in its net profits by RO 1.7 million, while Ooredoo anticipates a gain of approximately RO 2.5 million. These financial boosts are likely to improve investor sentiment and support the strategic financial positioning of both companies as they continue to invest in network expansion and digital infrastructure across the Sultanate.
Historically, royalty fees varied by operator and were governed by specific royal decrees. Omantel was subject to a 10% royalty under Royal Decree No. 20/2004, while Ooredoo paid a 12% fee based on Royal Decree No. 17/2005. These rates were previously reduced to 7% before being reinstated in 2016. This inconsistency had long been a point of contention within the industry, prompting calls for a more unified and equitable approach to licensing and revenue-sharing practices.
In 2021, the legal framework governing telecom licenses was revised through new royal decrees, allowing the government to determine annual royalty rates based on prevailing market conditions and strategic sectoral goals. The current unification aligns with these reforms and represents a major policy shift toward greater regulatory efficiency and fair market practices. As other operators adjust to the new rates, the telecom landscape in Oman is expected to become more stable and conducive to innovation and growth.
