Wednesday, April 20, 2005

How OmanTel is fooling everyone - even the WTO

Remember everyone when Oman when was in it's initial talks with the the World Trade Organization to become a member - I do. One of the rules that were set upon the Omani government back then, in order to move forward with the talks, was to open up the telecom sector of the industry to privatization and liberalization through freedom of competition (i.e: to allow a second fixed line; mobile; and internet operator to be established and have a fair advantage of the untapped telecom growing profit potential).

Up until there, all WAS fair.

Until the first bid to compete against OmanTel/Oman Mobile was set up. Many international companies had fought fair and square to be able to be in that line of competition. Companies like Orange, Vodaphone, and Telekom Austria were all turned down to have the door wide open for TDC/Qtel consortuim. Wild card? Perhaps. But it has been to the benefit of the Omani population so far since the Qatari goverment has since then been in talkes with its Omani counterpart in opening up the door for Omani qualified individuals who are looking for opportunities outside of the country.

Now along the way, in the middle and end of this year, there will also be a publication of the second licenses by the Telecommunications Regulatory Authority (TRA) for fixed line communicatins and internet service providers.

OmanTel has its IPO all set and ready to be offered through the MSM due May or June of this year (2005). So things seem fine and dandy.

But wait, there's more.

Since TDC/Qtel's consortuim (Nawras) had won the second mobile phone license to be operated in the Sultanate of Oman, that means not only does Nawras telecom have to abide by the rules and regulations set by international laws which had been set by the WTO in the very beginning. But so does OmanTel/Oman Mobile.

What I mean to say is that OmanTel/Oman Mobile are playing a dirty game at this business of 'fair advantage' over each other's competitor.

Oman Mobile gets its funding in terms of capital and expenditure through OmanTel; and OmanTel gets ITS funding from the government through the Ministry of Telecommunications. Even though that both companies are both registered as private yet closed share companies in the commercial industry.

So how is that a company which gets its funding from the government goes against a private-owned company head-to-head?

If it means anything, it means that OmanTel and Oman Mobile are fooling everyone with this cover of private companies and that they should not be as such.

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