Class two licences awarded in Oman – Friendi steals early march

Comments attributed to Dubai-based, pan-regional mobile virtual network operator (MVNO) that it is set to launch mobile services in Oman before the end of the year could potentially harm the company’s efforts to conclude a wholesale deal with one of the two incumbent operators, sources familiar with the situation told Comm.

Oman Mobile’s managing director Amer Al Rawas will be holding talks with the  five resellers, as will Nawras’ Ross Cormack

Today, Oman’s Telecommunications Regulatory Authority (TRA) confirmed it had issued five class two licences in the sultanate, allowing the resale of basic mobile services. Friendi Mobile, through a bidder called Arab Link was awarded one of the five-year licences, together with Injaz International, Kalam Telecommunications, Majan Telecom, and Mazoon Mobile. The cost of each licence is OR2,500 (US$6,500).

In the last few days Friendi Mobile has stated it would become Oman’s third mobile operator and the first MVNO in the region, with plans to launch services later this year.

“I understand Friendi hasn’t exactly done itself any favours by spreading the rumours in the press about it being awarded a third licence in Oman, and being the first MVNO to launch in Oman – before it even has finalised a wholesale agreement,” an Omani source told Comm.

The class two licences require a commercial agreement with one of the existing operators, Oman Mobile or Nawras, whereby the licencees are permitted to resell basic mobile services having bought airtime from the network operators in bulk. The services offered by the resellers can then be rebranded and offered to subscribers at local rates.

Resellers have the option of programming and issuing their own branded SIM cards or relying on the host operators to provide their programmed SIMs. Additionally, the licensees can independently recharge the products and services they distribute or utilise the infrastructure of the host operator. Billing and invoicing may also be independently handled by the licensee or by the host operator.

Despite not having negotiated a commercial agreement with an operator yet, Mohamed bin Yousuf bin Alawi, chairman of Friendi Mobile in Oman was confident the licencee’s future services would bring benefits to consumers.

“Because our technology allows us to use the existing networks we will have an excellent coverage from day one. This approach will guarantee the quality of coverage, which we believe is the most important factor for any mobile user,” Alawi stated.