Qtel denies interest in Omantel

Earlier this week Qatar Telecom (“Qtel”) issued a clarification regarding recent media reports linking the telco with a bid for a 25 per cent stake in Omantel.

Omantel is set to face competition domestically as a call for interest for a second fixed licence is set to close on August 25

The Qatar incumbent stated that it has not expressed an interest in bidding for this stake, going on to clarify that as the majority shareholder in Nawras, the second mobile operator in Oman, Qtel is mindful of the Omani rules and regulations.

Last month Saudi Telecom (STC) confirmed its own interest to acquire the 25 per cent stake in Omantel. The shareholding is being sold as part of a privatisation programme initiated by the Omani government, the value of which has been estimated at US$1.1 billion.

The sale of the stake in Omantel, the sultanate’s sole fixed-line operator and also a provider of mobile and Internet services, would reduce the government’s ownership from 70 to 45 per cent.

Between 2005 and 2007, Omantel’s subscriber base grew 14 per cent year on year, while revenues grew 16 per cent to US$950 million at the end of 2007.

In research compiled recently by Comm., Omantel topped a list of regional operators in that had charted the highest growth rates in net profit year-on-year between the first half of 207 and the first half of 2008. The Omani incumbent achieved an increase in net profit amounting to 54.23 per cent over the period, which was in comparison to a 14.33 per cent rise in revenues at the telco over the same period. The net profit improvement was attributed to strong growth in mobile and broadband services.