(MENAFN- Muscat Daily) With market dynamics changing substantially Omantel the largest telecom services provider in the sultanate sees competitive pressure increasing in the local telecom market.
In its first-quarter directors' report Omantel said the core telecom markets are saturating with a slowing voice and messaging market while potential remains in the broadband market.
'The market dynamics in the Omani telecom market context are changing substantially similar to what is observed globally. At the same time competitive pressure is increasing. Historical competitive advantages are eroding and increased presence of international over-the-top (OTT) players leads to market value destruction.'
The company said uncertainty over new local licences adds additional pressure. At the same time it said new opportunities are emerging especially in the IT market.
Omantel's mobile network market share (including mobile resellers) stands at 57.4 per cent while its share of the fixed telephone (post and pre-paid) market is estimated at 81 per cent.
In order to tackle market dynamics in the best possible way Omantel said it has developed a new corporate strategy 'With a focus on maximising the share of wallet and value per customer through expansion beyond the current core business and become a key differentiator companion of choice and creator and enabler of digital ecosystems.'
The company said execution of the new strategy will enable it to maintain its leading market position and to maximise shareholder returns. 'This is already demonstrated in our continued investments in our network to support the core business and our position as a true carrier of carriers within the region.'
Omantel's group revenue in the first quarter of 2015 grew to RO129.4mn an increase of 7.6 per cent from RO120.2mn for the corresponding period of 2014. Group net profit after tax came in at RO34.6mn compared with RO34.4mn a year earlier.
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