Oman insists on fixed-line telecom monopoly
by James Cordahi on Thursday, 15 November 2007
Oman ruled out any immediate end to the state's monopoly over providing fixed-line telecom services, and said it was looking for a long-term investor with managerial expertise for its state controlled telecom company. "Although no fixed target date can be given, it can be stated that the fixed line is not yet ready for privatisation as it is today," Economy Minister Ahmad bin Abdul-Nabi Mekki told Reuters in a written response to questions received on Wednesday.
Oman said last month it would sell a stake in Oman Telecommuncations to a long-term investor to improve its competitiveness. "A new investor should provide and contribute up-to-date, applicable technology and new practice, as well as managerial expertise," Mekki said.
Oman is selling the stake because it wants to "enhance the company's ability to compete in the global market, improve quality and competitiveness of service, and involve the private sector in the economic development of the country," Mekki said. Asked when and how much of Omantel the state planned to sell, he said: "The government is in the process of considering various options and will disclose the related terms in due time.".
Oman sold 30 percent of Omantel in 2005, raising 280.8 million rials ($729.5 million) in the country's biggest initial public offering. The firm's rules require the government to hold at least a 51 percent stake, leaving 19 percent for possible sale now.
Emirates Telecommunications Corp and Bahrain Telecommunications have expressed an interest in competing for the stake. Nawras, 70 percent owned by state-owned Qatar Telecommunications , is Omantel's only rival in the country of 2.5 million people. (Reuters)
READERS' COMMENTS
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST TECHNOLOGY
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST TECHNOLOGY
LATEST MIDDLE EAST BUSINESS NEWS
- Construction & Industry: Iran, Turkey affirm development of gas pipeline
- Construction & Industry: Nakheel to scale back projects
- Construction & Industry: Director General of Dubai Civil Defence to talk at fire event
- Construction & Industry: Global giant set to launch regional roll-out of 'next generation' building products in Dubai
- Construction & Industry: Germany turns out in force at The Big 5
RELATED STORIES
Oman Telecommunications Company (Omantel)
- Qtel unit wins Oman fixed-line phone licence
18 Nov '08 | News - Omantel misses forecasts with 5.8% profit drop
2 Nov '08 | News - Trading thin on first day of Ramadan
1 Sep '08 | News




