New TRA Regulations to Streamline Telecom Pricing: Key Implications for Investors and Businesses in Oman
MUSCAT, AUGUST 15 – The Telecommunications Regulatory Authority (TRA) of Oman has unveiled new regulations regarding telecom pricing and promotions, aimed at safeguarding consumer interests and fostering fair competition within the sector.
This framework, released last month following consultations with major telecom providers including Omantel, Ooredoo, Vodafone, Awaser, and Majan Telecom, addresses the need to prevent "unsustainable competition" that may jeopardize revenue and infrastructure investments.
Under these new rules, the TRA will closely monitor market trends and take action if the price for any given service decreases by more than 10 percent within six months, or if the average revenue per subscriber declines by over 5 percent. This could include requiring prior approval for tariff changes from operators, especially those considered dominant, such as Omantel.
In cases where market behavior suggests the onset of a price war, the TRA may impose a three-month "cooling-off period," which would temporarily restrict operators from launching new promotional offers.
Key restrictions on promotions include limiting operators to four offers for the same service within a six-month period, setting a maximum offer duration of 60 days, and ensuring that only "active subscribers"—those who have recently used voice, SMS, or data services—are eligible. Additionally, no promotional offer can bind customers to contracts longer than 12 months, and only 5 percent of an operator’s customer base can be on discounted packages at any time.
The TRA will also assess how these promotions affect competitors’ revenues and may intervene if significant financial losses are identified.
Responses from the industry vary. Omantel has suggested implementing a minimum price per gigabyte to combat what it terms a "race to the bottom." Meanwhile, Ooredoo and Vodafone have advocated for a clear and consistent enforcement of the regulations, and Awaser has argued that restrictions should be applicable only to dominant operators.
Concerns were raised by some operators regarding a clause that barred promotional offers from tenders being extended to individuals or small businesses, citing potential negative impacts on small and medium-sized enterprises (SMEs). Following feedback, the TRA removed the term “commercial users” and confirmed that government agencies remain eligible for such offers.
The Authority has stated that it will regularly review the framework, making adjustments as necessary in response to market developments and emerging technologies.
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The new telecom regulations introduced by Oman’s TRA signal a significant shift towards حمایت از مصرفکننده و fair competition, which could lead to a more stable market environment for telecommunications. Businesses must now adapt to a landscape with limited promotional flexibility, while سرمایهگذاران و کارآفرینان should remain vigilant in identifying opportunities within this regulated framework, particularly in exploring sustainable pricing models and innovative service offerings to differentiate themselves in a potentially more competitive arena.
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