Oman

Etisalat in Oman



Abstract

Oman has broken the monopoly in telecommunication industry back in the year 2005. The country has the potential to absorb new participants in the competition. This paper discusses the country analysis of Oman with regard to telecommunication sector. This report discusses the decision of a UAE based group of companies, Emirates Telecommunication Corporation Group (Etisalat), whether it should enter the telecommunication industry of Oman or not. This paper will also present the overview of the Telecom Industry of Oman, the position of competition in detail and historical trends in the segment of the industry. The focus of this report will be mobile market as it is star segment in this region. This report is the detailed analysis of external threats and opportunities in the scenario of Etisalat. The conclusions and recommendations are presented in the end to summarize the findings and coming to the point of decision.

Table of Contents

Introduction1

Country Analysis1

Political2

Economic Trends3

Social Trends5

Technological Trends6

Legal7

Telecommunication Industry overview7

Liberalization8

End of Monopoly9

Mobile Segment10

Differentiation in Competition of Oman Telecommunication Industry12

Etisalat14

SWOT Analysis16

Strengths16

Weaknesses17

Opportunities17

Threats18

Conclusion19

Recommendation20

References22

Etisalat in Oman

Introduction

The motives behind entering a foreign market are different. It might be a part of vision of the firm, it might be because of the domestic market is saturated. The offensive strategy towards foreign player might be one reason, or it could be a defensive move. Oman has broken the monopoly in telecommunication industry back in the year 2005. The country has the potential to absorb new participants in the competition. This paper discusses the country analysis of Oman with regard to telecommunication sector.

The company which is considering the decision to enter the Oman Telecommunications market if the UAE based group of companies, Emirates Telecommunication Corporation Group (Etisalat). This report will take a 360 degree approach of analysis. Keeping in mind that external factors need to be analysed in the beginning and in detail. The trends in the political, economic, technological, social and legal environments might seem to be unrelated to the industry. However, this report will connect the points in a flow. It will show how the trends apparently unrelated to the telecom industry might present an opportunity and threat for the industry. This paper will also present the overview of the telecom industry of Oman, the position of competition in detail and historical trends in the segment of the industry. The focus of this report will be mobile market as it is star segment in this region. In the end the conclusion of the whole analysis will be presented along with recommendations for Etisalat.

Country Analysis

Oman is of the GCC countries, and has similar level of per capita GDP with Saudi Arabia, but with smaller population (Oman Economic Review (OER), 2010). It is necessary to see the details of the poetical, economic and technological outlook for analysing the position and predicting the trends of business in Oman.

Political

Sultan Qaboos bin Said al-Said is the ruler of Oman. There have been significant political and economic reforms during his rule. These reforms have been in reaction to the protests in the first half ...