TRA cuts royalty rate on mobile service, boosting telecom operators' profits
The decision, which will reduce the royalty rate for mobile services from the current 12% to 10% of revenue, is expected to lower the royalty expenses of Oman's telecom operators and positively impact their earnings.
The TRA's decision applies to all Class I, Class II, and Class III telecom licence holders in the sultanate.
In a disclosure to the Muscat Stock Exchange, Oman Telecommunications Company (Omantel), the largest telecom service provider in the sultanate, said the TRA's decision reduces the royalty rate on mobile telecommunications services from 12% to 10%, while the rate for fixed telecommunications services remains unchanged at 10%.
'The decision will lead to a reduction in Omantel's royalty expenses and a positive impact of RO1.7mn (net of taxes) on net profit for the six months ending June 30, 2025,' Omantel said.
Omantel reaffirmed its commitment to complying with regulations and the regulatory framework. 'The company will continue to disclose transparently any material developments that may affect its financial position.'
Ooredoo Oman, officially known as Omani-Qatari Telecommunications Company, confirmed it has received notification from the TRA regarding the new royalty rate and anticipates an after-tax financial benefit of around RO2.5mn for the full year 2025. The company expressed its appreciation for the TRA's efforts in standardising the rates.
'The standardisation of the royalty rate is expected to have a positive effect on the company's financial results, amounting to RO2.5mn after tax for the financial year 2025,' Ooredoo Oman said in a separate disclosure to the Muscat Stock Exchange.
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