The company, which sells both fixed-line and mobile phone services, increased its revenues by 15 per cent, from RO85.7m in the first quarter of 2007 to RO98.2m in the corresponding period of 2008.

Omantel was able to increase its profits much faster than its revenues despite greater competition from the country’s second mobile phone operator, Nawras, a subsidiary of Qatari operator Qtel.

Nawras reported its first net profit in September last year as its number of mobile phone customers exceeded 1 million for the first time.

Last year the UAE’s Etisalat said that it would be interested in bidding for a stake in Omantel if the government sells part of its 70 per cent holding in the company (MEED 12:10:07).