Broadband usage to surge in Oman

28 November 2010

Demand for high-speed internet to rise

Oman’s broadband penetration levels are set to rise, according to a report from investment bank Rasmala.

Incumbents Omantel and Nawras will benefit with their comfortable fixed line duopoly. Competition is expected to stiffen further in the mobile market over the next few years as both attempt to meet the growing demands.

While fixed line internet penetration levels are around 42 per cent, broadband penetration is just 4 per cent. Fixed broadband penetration is set to reach 22 per cent by 2015, but demand for mobile broadband will supercede this in line with the general trend seen in the region.  

The key driver for this growth is the country’s large youth population and relatively high spending power. Almost 40 per cent of the population is aged below 14.

Oman’s telecoms industry is one of the most active and competitive in the region. Up until now seven mobile virtual network operators (MVNO) licences have been awarded. Six now have operations running and mobile penetration levels have reach 140 per cent.

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