Slide 1

Monetizing Digital Services in Oman

Presentation to Telecoms World Middle East – 15 Sep. 2015

Safdar Imam, Senior Costing Expert, Omantel

Slide 2

PRESENTATION ROADMAP – NEXT 11 SLIDES

• Digital Services Landscape (1 slide)

• Digital Lifestyle Potential in Oman (2 slides)

• Connectivity Landscape in Oman (3 slides)

• FBB Connectivity

• MBB Connectivity

• Smartphone Applications

• Omantel from Present to Future (1 slide)

• How to become DLP - Tomorrow from CSP - Today (1 slide)

• Regulatory Needs for Digital Society (1 slide)

• Take-away - the final sum-up (1 slide)

Slide 3

DIGITAL SERVICES LANDSCAPE

• Govt services

• Health

• Education

• Utilities

• Municipalities

• Politics

Citizens’ needs

• Banking & Fin. services

• Professional services

• Small and Medium Enterprises

• Retailing Businesses

• Transport & Hospitality

Business’ needs

• Emp. & Community

• Family & Homes

• News & Gossip

• Culture & Tourism

• Religion & Charity

• Sports & Hobbies

• Ent. & lifestyle

Social needs

Slide 4

DIGITAL SERVICES IN OMAN – STATUS & POTENTIAL (1)

• Digital Apps. are fast growing in Oman, particularly

• Financial Services sector

• Education sector

• Government sector

• Entertainment and Social interaction

• WiFi and Data Centres are becoming most popular services

• Bandwidth hunger is increasing tremendously;

• Oman’s rank in Intl. Internet bandwidth per user jumped from 95 to 67

within a year 2014 (WEF Global Competitiveness Report 2015)

• Oman has 178 Gbps capacity for Intl. internet bandwidth by June 2015;

27.2% increase over March 2015; 140 Gbps (TRA Oman Q2 2015 Status Report)

http://reports.weforum.org/global-competitiveness-report-2014-2015/

https://www.tra.gov.om/pdf/telecom-market-report-Q2-2015.pdf

Slide 5

DIGITAL SERVICES IN OMAN – STATUS & POTENTIAL (2)

Oman has big potential for Digital Contents/ Services

Omantel alone is generating almost US $ 25 million annually mostly

from entertainment and social SMS Contents (Taif Club & SMS2TV) on

revenue sharing business model with the CP’s

Internet based Data Contents are booming big way (e-Citizen, e-

Education, e-Banking, e-Commerce, e- Anghami; Samani etc.)

3G, LTE, FBB/ WiFi expansion and increasing smartphones are the

very strong growth drivers

Omantel is establishing and strengthening partnerships with DSP both

in the Consumer and Enterprise sides

Over the next quarters many new digital contents/ services should be

introduced in Oman with strategic collaboration between CSP’s and

Digital Partners

Estimated potential – at least US $ 100 million (4% of total telecoms

revenue) by 2017

Slide 6

FBB CONNECTIVITY IN OMAN

78,214

113,324

154,290

177,063

198,408

328,000

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Fixed Broadband - Oman Market1. Omantel2. Ooredoo

Dec-11 Dec-12 Dec-13 Dec-14 Jun-15 Dec-17

HH Pen.

19%

Source: TRA Oman NBS Oman

HH Pen.

49%

HH Pen.

66%

Slide 7

MBB CONNECTIVITY IN OMAN

1,076,274

1,646,098

2,443,296

2,893,561 3,083,375

5,284,000

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Mobile Broadband - Oman Market1. Omantel 45%2. Ooredoo 42%3. Resellers 13%

Dec-11 Dec-12 Dec-13 Dec-14 Jun-15 Dec-17

Pop

Pen.

95%

Source: TRA Oman Arab Advisor

Pop

Pen.

39%

Pop

Pen.

74%

Resellers (MVNO)

1. Friendi

2. Renna

3. TeO

LTE Launch by

Omantel

16.07.2012

Slide 8

SMARTPHONE MARKET OS SHARE (%)

46.48

36.63

6.52

1.27

9.10

Smartphone OS (Only Omantel)based on Omantel data – August 2015

Android

Nokia Symbion/ Windows

IOS (Apple)

Blackberry

Others

Slide 9

OMANTEL - FROM PRESENT (CSP) TO FUTURE (DLP)

• In a Digital Society, Omantel

would transform as a Digital

Enabler + CSP

• With ubiquitous digital networks,

ability to connect every device or

Thing, powerhouses of Direct

Carrier Billing (DCB) and the Big

Data, Omantel sh0uld partner

with

• Digital apps/ solutions providers

• Digital services aggregators

• Digital enterprises

• E-government agencies

CSP

Ubiquitous digital

network

Digital Enabler

with Billing and Big

Data

Digital Lifestyle Provider

To enhance traditional Services

and Revenue opportunities.

Slide 10

HOW TO BECOME DLP FROM CSP

Transform Omantel into agile Retailer

• Empower people to take risks & enhance service satisfaction

• Simplify & automate processes

• Make service delivery efficient and network systems/ infrastructure resilient

Innovate Digital Offerings

• Increase relevance to customers

• Pioneer the home; Wire maximum residential and business premises by Fibre

• Be partner of choice for Int’l carriers & local enterprise sector

Lead Oman’s Digital

Transformation

• Bridge Digital divide; lead digitalization in rural Oman

• Transform Omantel into a Digital Entprize; by changing internal processes, mindset and approach

• Enable e-government

Exceed customer

expectations

• Highest priority to customers’ delight

• Thrive to know customer needs and our capacity using big data; differentiate where we excel

• Put long term impact ahead of short term gains

Inspired from 4 pillars of Omantel 3.0 strategy

Slide 11

REGULATORY NEEDS TO NURTURE DIGITAL SOCIETY

Growth of Digital Society needs a motherly role of an ICT Regulator

to nurture digital services and infrastructure.

The Regulator should;

• Support investment in high-capacity access infrastructure, taking care of

paucity of affordable demand and deficits in service revenue, even if it

has to apply retail-efficiency pressure on service-based operators.

• Promote Rebalancing of Data vs.Voice pricing to correlate with the costs

of respective segment

• Support economics for data-centric network based services until full

rebalancing is achieved;

• Allow initial moratorium on network-sharing for high-capacity NGA

• Coordinate at ITU level to bring OTT’s under regulatory obligations

• Facilitate commercial partnership between Content/Applications and

Connectivity providers

• Allow Ramsey-principle in price control, i.e., cross-subsidize data network

from high-demand innovative products and services

• Support innovation by registering & protecting IP (impose at least 6 months

moratorium on competitors to adopt rival-innovated digital product idea)

Slide 12Slide 12

TO SUM UPSUCCESSFULLY TRANSFORMED INTO

A CSP OF CHOICE FOR DIGITAL LIFESTYLE

OMANTEL SHOULD KEEP THRIVING WITH LEADERSHIP IN

FAST UPCOMING OMANI DIGITAL SOCIETY

IN SHAA ALLAH

Citizen-centric globalized digital society

Customer-centric digital lifestyle provider

Slide 13Slide 13

Thank you

Any Q’s now or by email

safdar.syed@omantel.om

Ask anytime