New telecom royalty rate to boost competitiveness

Observer

2 days ago

MUSCAT, AUG 11
Oman's Telecommunications Regulatory Authority (TRA) has confirmed that its decision to unify the royalty rate across mobile and fixed telecom services will be a game-changer for the sector—boosting competitiveness, attracting investment, and creating a level playing field for all licensed operators.
'This decision will increase the competitiveness of the telecom sector and enhance Oman's investment appeal,' the TRA said in an exclusive interview with the Observer. 'It creates a level playing field for all telecom licensees, ensuring fair and equal treatment across the board.'
The move, which applies the revised royalty rate uniformly to all operator classes and license types, removes long-standing disparities between mobile and fixed service providers. By eliminating regulatory bias, it opens the door to balanced infrastructure investment, greater innovation, and higher service quality.
The TRA said the unified rate will simplify regulatory procedures, reduce administrative complexity, and improve transparency—making Oman's telecom market more efficient and attractive to local and foreign investors. Lower financial burdens on companies are expected to free up capital for network expansion, advanced digital services, and customer-focused innovations.
While the regulator noted that the reduction in royalty fees should, over time, enable providers to offer more competitive tariffs, it stressed that the actual impact on end-user prices will depend on market competition, pricing strategies, and operational costs.
The reform is also closely tied to Oman's national ambitions. 'This aligns directly with Oman Vision 2040 and our digital economy goals,' the TRA said. 'It strengthens the foundations for economic diversification, technological advancement, and positions Oman as a regional hub for digital transformation.'
Industry analysts say the move signals a pro-investment regulatory environment at a time when the telecommunications sector is pivotal to Oman's economic future. By levelling the playing field and boosting investor confidence, the change is expected to accelerate the rollout of next-generation networks, expand digital access, and reinforce Oman's standing in the Gulf's competitive telecom landscape.