(MENAFN- Muscat Daily) Muscat- Two regional telecom operators, Saudi Telecom Company (STC) and Kuwait's Mobile Telecommunications Company (Zain), have bid for the third mobile operator's licence in Oman.
STC and Zain announcedon Mondaythrough their statements to the Saudi Stock Exchange (Tadawul) and Kuwait Stock Exchange (Boursa Kuwait) respectively that they have applied for the third mobile operator's licence.
'STC announces that the company submitted (Monday) to Omani Telecommunications Regulatory Authority (TRA) the technical and the financial offer to bid for the third mobile licence in the Sultanate of Oman according to the Information Memorandum (IM) published by TRA. The bid includes a complete business plan, technical and financial plans along with a financial offer for the licence,' STC said in its disclosure on Tadawul.
STC's participation in the bidding process is in line with its expansion strategy in the region. 'The Omani telecom market is considered to be a promising one with good growth potential. The company will subsequently announce any developments in this regard,' STC stated.
Zain in its disclosure to Boursa Kuwait said that it has submitted a technical and financial bid for the third mobile licence in Oman. Zain's bid will include an integrated business plan, the statement said, adding that the move comes in line with the telco's pursuit of optimal investment opportunities.
According to TRA's IM, the qualified bidders will be shortlisted and announced byAugust 14and the ultimate licence winner will be announced onSeptember 4. In November 2016, TRA had announced the availability of IM detailing the process for the award of a third licence for the 'installation, operation, maintenance and exploitation of a telecommunications system to provide public mobile telecommunications services' in the sultanate.
TRA stated that it considers that the enhancement of competition in the mobile telecom services market will be of significant benefit to consumers and the economy of the sultanate. 'The availability of a range of additional radio spectrum that could be deployed is expected to provide a multitude of mobile telecom services, particularly mobile broadband, to consumers in the sultanate,' it said.
According to IM, an applicant, or in the case of a consortium, the principal applicant, must be a provider of mobile telecom services in its country of origin for a period of not less than ten years and should be operating in at least one country other than its country of origin for a period of not less than five years. The applicants should have an annual turnover equivalent to more than US$250mn and a net asset value not less than US$400mn at the time of application.
Zain is a mobile and data services operator with a commercial footprint in eight Middle Eastern and African countries, providing services to over 47mn customers as of December 31, 2016.
STC, together with its subsidiaries, provides telecom services in Saudi Arabia and internationally including Indonesia, India and Kuwait.
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