Omantel faced a significant increase in royalty and annual spectrum charges, combined with existing licence fees and taxes. This raised uncertainty around the company’s long-term financial obligations and the potential impact on its competitiveness and investment capacity within the region.
The challenge
Omantel needed clarity on how rising regulatory charges would affect its financial position, future network investments, and market performance. The challenge was to quantify these impacts, benchmark Oman’s approach internationally, and provide guidance to support discussions with regulators and government stakeholders.
Project outline
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Reviewed the impact of increased fixed royalty fees on the telecom and ICT sector, with detailed analysis for Omantel.
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Benchmarked total regulatory costs against comparable economies, applying economic adjustment methods.
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Assessed Oman’s financial-obligation framework against international best practice.
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Evaluated the effect of higher royalty charges on future investments, including 5G and wholesale infrastructure projects.
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Analysed implications for shareholders, investors, and consumer uptake of fixed services.
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Developed policy recommendations for TRA and the Government of Oman on the application of royalty charges.
Our impact
The assessment provided Omantel with a clear economic rationale to inform negotiations with regulators. It quantified the financial burden of rising charges, demonstrated comparative inefficiencies against peer markets, and supported evidence-based policy discussions aimed at creating a more balanced regulatory environment for future investment.
Duration of engagement: June 2021 – July 2021