sarvoday college of management & technology (limbdi pdf 2013/757 oman 5-.pdf · sarvoday...

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Submitted To:

Sarvoday College of Management & Technology (Limbdi) IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS OF THE AWARD FOR THE DEGREE OF “MASTER OF BUSINESS ADMINISTRATION ”

IN UNDER THE GUIDANCE OF

PALAK TRIVEDI (ASSISTANT PROF. OF SCMT) SUBMITTED BY :

Group 1 Group2

Ghanchi Karishma M.Ghanchi Karishma M.Ghanchi Karishma M.Ghanchi Karishma M. Koradiya Nitin. S : 117570592008 Vasoya Komal.M Kad Mahesh. R. : 117570592010 Zala Aditiba.N Dhandhuki ya Ankit.B : 117570592012 Chudasama Yogiraj M Chauhan Nilam. : 117570592013 Ranghadiya Jitesh.K Chauhan Vaishali. A : 107570592017 Trivedi Bhavesh.J Zala Jaypalsinh.C : 117570592014

GUJARAT TECHNOLOGICAL UNIVERSITY AHMEDABAD (2011-20 13)

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Declaration

We, hereby declare that the report for global/country study report

entitled.

In OMAN is a result for our own work and indebtedness to other work

publications,

Reference, if any, have been duly acknowledged.

PLACE:

DATE:

Group 1

NAME: signature:

Koradiya Nitin. S (117570592008)

Kad Mahesh. R. (117570592010)

Dhandhukiya Ankit.B (117570592012)

Chauhan Nilam. (117570592013)

Chauhan Vaishali. A (107570592017)

Zala Jaypalsinh.C (117570592014)

Group 2 Group 2 Group 2 Group 2

Koradiya Nitin. S (117570592008)

Kad Mahesh. R. (117570592010)

Dhandhukiya Ankit.B (117570592012)

Chauhan Nilam. (117570592013)

Chauhan Vaishali. A (107570592017)

Zala Jaypalsinh.C (117570592014)

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Preface

During the last decade’s management as a discipline has attached the

attention of many academics to a very great extent. The basic reason behind this

phenomenon is the growing importance of management in the day to day life of the

people today the society has a large and complex situation with many people

working together and manage them efficiently has been must.

With the help of M.B.A. curriculum all the student are getting theoretical and

practical knowledge.

The major objecting for preparing a global project report is to complete course

requirement which is compulsory for us. The one is to develop communication skill

both oral and written to make a direct interaction and also improve our analytical skill

students can gained experience during the global country project report by

substantive knowledge through integration of literature and methodology.

For all this aspect we have chosen OMAN country to easily understand

operation management and import-export strategies.

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Acknowledgement

We are writing this report during the global country project report in the

program of Master of Business Administration at the operation management and

import export strategies of OMAN.

It has been a great challenge but plenty of learning and opportunities to gain

hung knowledge of the way writing this report we would not survived these without

Mrs. Palak Trivedi our amazing faculty guide who seemed to be with us always

prepared to give us feedback and guideline whenever we needed. We also would

like to thank all our friends, our colleagues and that entire person whom we meet in

this period for all feedback and help which they provided to us and of course to

Sarvoday College of Management and Technology, Limbdi.

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Executive Summary

This is an attempt to provide the global overview of Oman country including Present

Trade Relations & Business Volume of Different Products with India/Gujarat,

Financial Markets, and Industry Trade & Commerce etc. The purpose behind this study is to determine the Trade Relations with Oman & its

impact on Indian Economy.

The demographic segmentation divides customers into segments divided based on

age, gender, family size, family life cycle, income, occupation, education, religion,

generation, social class and nationality. The Public expenditure on education as a

percent of GDP is 3.9. The GDP of Oman is growing 4.7% each in 2010 and 2011.

The grow the of GDP is depend on new tax lows, new privatization laws, enhancing

non oil sector and creating a market friendly. The nominal GDP increased 10.5%

during the period of 2005-2009. We have also studied six economic sectors of Oman

namely Conglomerate, Financials, Oil & Gas, Industrials, Telecommunications &

Travel & Leisure.

Under Sultan Qaboos, who overthrew his father in 1970, Oman has followed a path

of careful and gradual development and modernization. The decision-making

process remains uncontested; the sultan enjoys absolute power in governance.

Oman’s political sector has limited freedom. In 1970’s Oman Become a United

Country. Oman Peninsula Going Back To About 1000 B.C. Sultan Qaboos Have

Come In Power On His Hand In 1970. Qaboos Reserved His Father’s Conservative

Policies. 19th century Oman had established an empire that included Zanzibar and

Baluchistan now Its called Tanzania and Pakistan. A bilateral free trade agreement

with the United States went into effect in January 2009.

Export partner of Oman includes China, south Korea, Japan, U.S., U.A.E., Iran & its

Import partner includes U.A.E., Japan, Germany & India. Oman is the second

biggest investor in India. And it also records that Oman’s FDI has also grown from

$24 million to $340 million in 2012. The government did not demonstrate a trend

toward either improvement or deterioration in respect for and protection of the right

to religious freedom.

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Key Topics Covered in the Report:

• Demographic Profile of Oman

• Economic overview of Oman

• Overview of Industry, Trade & Commerce

• Overview of Different Economic Sectors of Oman

• Overview of Business & Trade At International Level

• Present Trade Relations & Business Volume of Different Products with

India/Gujarat.

• Overview of Financial Market

• WTO & Other Trade Unions & Its Impact on Commerce & Industry of Oman.

We have conducted the brief study on global overview of Oman country for

purposes like Economic Overview, Trade relations with Oman. In the light of the

above, the present study, “A Global/Country Study & Report on Oman” has been

conducted.

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HISTORY

Overview of Oman

• Oman's Names

The name of the Oman derived from the word ‘muzn’ which means abundant

flowing water. The primary name of the country is Magan it is derived from the name

of the Oman’s ancient copper mines. The Oman is believed to originate from the

Arab tribes who migrated to its territory from Uman state of the Yemen.

The capital of the Oman is Muscat. The some area of the Oman was controlled

by the Portuguese from 1508 to 1659. The country established its close ties with

Britain in the late 18th century. In around 630 AD the first people of Omanis to accept

Islam voluntarily. The prophet Muhammed sent his envoy Amr ibn Al As to meet

Jaifar and Abd, the joint people of Oman at that time to invite them to accept the

faith. After the accepting Islam Oman became an Ibadhi state.

Sohar was one of the great and largest cities in the Arab world then by the middle

Ages Oman had established itself as a prosperous seafaring nation, sending draws

from its great port at Sohar to trade with merchants in far flung destination.

The 16th century the powerful Portugese trading empire sought to extend its

influence and reduce Oman’s control over the thriving Arabian Sea and Indian ocean

routes. Oman entered an era of prosperity at home and abroad, and many of the

sultanate’s historic building and forts date from during the Yoruba period (1624-

1744).

In 19th century Oman most of the trading and seafaring activities with the East Africa

because there are many similar Islam are lived in East Africa’s coastal areas and

specific areas of the central Africa. The people of Oman also carried the message of

Islam with them to China and the Asian ports. During the initial years of the Islamic

mission Oman played a major role in the wars of Apostasy that occurred after the

death of the Muhammed

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TABLE OF CONTENTS

Sr No. Particulars Page No.

Preface 3

Acknowledgement 4

Executive Summary 5

History 7

1 Demographic Profile of the Oman 9

Economic Overview of Oman 12

Overview of Industry, Trade and commerce 15

Overview of Different Economic Sector of

Oman

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Overview of Business and Trade at

International Level

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Present Trade Relation and Business Volume

of different Products in India/Gujarat

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PESTEL Analysis 32

Financial Market in Oman 36

2 Group – I 32

3 Group - II 88

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Demographic profile

Demographic Segmentation, which is considered the most common one that deals with basic The demographic segmentation divides customers into segments divided based on age, gender, family size, family life cycle, income, occupation, education, religion, generation, social class and nationality.

The main demographic segmentation variables are summarized below

1. Population

Population: 3,090,150 (July 2012)

note: includes 577,293 non-nationals

2. Age

Age structure: 0-14 years: 31.2% (male 484,292/female 460,066)

15-64 years : 65.7% (male 1,133,329/female 856,701)

65 years and over : 3.1% (male 47,786/female 45,785) (2011)

3. Population growth rate: 2.043% (2011)

4. Birth rate: 24.33 births/1,000 population (2011)

5. Death rate: 3.42 deaths/1,000 population (July 2 011)

6. Net migration rate: 0.47 migrant(s)/1,000 popula tions

7. Major cities - population: MUSCAT (capital) 634, 000 (2009)

8. Sex ratio:

At birth : 1.05 male(s)/female

under 15 years : 1.05 male(s)/female

15-64 years : 1.31 male(s)/female

65 years and over : 1.03 male(s)/female

total population : 1.22 male(s)/female (2011 est.)

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9. Total fertility rate: 2.87 children born/woman ( 2011)

10. Infant mortality rate

Total : 14.95 deaths/1,000 live births

Male : 15.25 deaths/1,000 live births

Female : 14.63 deaths/1,000 live births (2011)

11. Life expectancy at birth

Total population : 74.47 years

Male : 72.61 years

Female : 76.43 years (2011)

12. Religions : Ibadhi Muslim (official) 75%, other (Sunni Muslim, Shia Muslim, And Hindu) 25%

13. Languages: Arabic (official), English, Baluchi, Urdu, Indian dialects

14. Literacy: interpretation: age 15 and over can read and write

Total population : 81.4%

Male : 86.8%

Female : 73.5% (2003).

15. Education expenditures: 3.9% of GDP

16. Maternal mortality rate: 20 deaths/100,000 live births (2008)

17. Health expenditures: 3% of GDP (2009)

18. Hospital bed density: 1.9 beds/1,000 population (2008)

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�� GDP OF OMAN 2010-2011: The GDP of Oman is growing 4.7% each in 2010 and 2011

�� Vision 2020 calls for diversification: The share oil is 9% in total GDP in 2020

as compared to 41% in 2009. Oman also focus on industrial sector is evident in

the vision 2020.

�� 2011 Budget the largest in Oman history : The estimated revenues are of

Oman to reach R04, 956 mn in its 2011 budget.

�� The production statements of the oil, Gas and hydro carbon revenue are as under:

1. Oil (2011) : RO920mn 2. Gas (2011) : RO1,404mn 3. Hydrocarbon (2011) : RO5,876mn

�� Oman Oil & Gas Sector: The recent financial crisis has taken its decrease in oil

prices which fall to below USD35/BBL in 2009 before correcting and reaching as

high as USD 80/BBL in 2010. The oil and Gas are considered big factor in the

economy. They are about 41% and 47% during 2009 and 1Q-2010 respectively.

�� Natural Gas : The vision of the Oman 2020 seeks transformation of Oman’s

economy through diversification and aims to increase natural Gas to above 10%

by 20011

The use of the natural Gas is distributed to for se ctor:

1. Power Generation

2. Industrial areas

3. Industrial projects

4. Oil fields

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�� Monetary Policy: The Establishment of the Central Bank of Oman in 1974. It is

the depository agency of sultanate of Oman. It regulates financial institutions,

determine discount rates, loans on behalf of the government , providing clearing

services for all commercial banks, and act as the advisor of the government in

monitory and financial matter. The CBO of Oman directly regulates the flow of

currency in to the economy. . The most important instruments the bank uses

are reserve requirements, loan to deposit ratios, treasury bills, rediscount

policies, currency swaps and interest rate ceilings on deposits and loans.

�� Credit facility : During the year 2012 the credit facility of the Oman reached RO

9.8bn it’s more than the year 2011

�� Inflation: Before the credit crisis inflation was a major concerned of Oman. The

inflation reached as 12.4% in 2008 before declining to 3.4% in 2009 because

global prices are declined and economic activity slowed down.

�� Population & Labor Force: The Omani population increased 10.7% in 2009 to

reach 3.17mn, as compared to 2.86mn in 2008. On the basis of CAGR Omani

population increased 6% during the period 2005-2009.

�� Industrial: The industrial growth of the Oman is largest compared as compared

to 2008. The profit of the industrial sector increased 24.8% to reach RO24.3mn to

reach RO 82.1 mn.

�� SERVICES: Service sector provide large part of the profit in Oman economy

because Telecommunication is the largest company in MSM. The profit of the

Omantel increased 5.6. % in 2011. In 2010 Omantel, Bank Muscat, Nawras

Telecom, Bank Dhofar and Oman cement acquire a 50.1 % share of the total

corporate profits as per year 2010. Omantel being the leader.

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There are mainly six industry sector of Oman countr y and there are as following :

1. Conglomerate 2. Financials 3. Industrials 4. Oil & gas 5. Telecommunication 6. Travel & leisure

1. CONGLOMERATE: The first important sector of Oman country is conglomerate. Under this the main is Shakshy Group Company . The Shakshy group company is holding type of a private company. There are many kinds of subsidiary of Shakshy Group Company and mainly are three subsidiaries and they are oil and gas, construction, and energy. 2. FIANANCIALS The important industry sector of Oman country is financial sector. Under the financial sector the main is Muscat securities market. Type Stock Exchange Location Muscat, Oman, Sultanate of Oman Founded Muscat, Oman, Sultanate of Oman Currency OMR No. of listings 116 companies

Indexes MSM 30

Website msm.gov.om

� Muscat Securities Market has been awarded ISO-9001:2008 certification for

"Trading of Securities"

� Muscat securities Market has been awarded ISO-27001:2005 certification

for "INFORMATION SECURITY MANAGEMENT SYSTEM"

3. INDUSTRIALS

One of the main and important companies in industrials sector is Oman Oil Marketing Company. It was developed in oct-2003.

Fuel Retailing Direct fuel sales to Government and the Commercial sector

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Lubricants Aviation Refueling Storage and Distribution

4. Oil & Gas

There are mainly four sectors included under the Oil and Gas Company of the Oman

country.

1) Oman LNG

2) Oman Oil company

3) Oman Refinery Company

4) Petroleum Development Oman

5. TELICOMMUNICATION

Under the telecommunications there is mainly one in dustry and that is:

1. Nawras: There are following information of the N awras: Type : Private

Industry : Telecommunications

Founded : 2004

Headquarters : Muscat, Sultanate of Oman

Key people : Mr. Amjad Mohamed Al-Busaidi, Chairman

Mr. Ross Cormack, CEO

Revenue : OMR 196.9 Million (2011)

Employees : +1000

Website : wwww.nawras.com

6. TRAVEL & LEISURE

Oman Air is the national Air line of the Oman and it is located in the Muscat

International Airport in Seeb Muscat. It provides service domestic as well as international passengers. The company also has charter flights. As of 1 March 2010, Oman Air has become the first airline in the world to offer both mobile phone and Wi-Fi Internet services on selected routes

New airline: 1993

Founded : 1981 Hubs : Muscat International Airport

Frequent-flyer program : Sindbad Frequent Flyer

Airport lounge : Oman Air Lounge

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Fleet size : 26 Company slogan : Modern Vision. Timeless Traditions... Parent company : Government of Oman

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Overview of different economics sector of Oman country

A Large Number Of Peaceful Protests With a Wide Range Of Demands, Including More Jobs, Higher Salaries, Increased Media Freedoms And On End To Corruption. In 1970’s Oman Become a United Country. Oman Peninsula Going Back To About 1000 B.C. Sultan Qaboos Have Come In Power On His Hand In 1970. Qaboos Reserved His Father’s Conservative Policies.

In 1965-75 Dohar War the country has led nearly 40 years of steady development. In modern stream of oil revenue his government has build up good infrastructure with education and health system. In 1650 after independence from Portugal Oman is largest state in the gulf. In 1506 , first Europeans arrived in Oman is Portuguese. The country start a staging post on the route to India. 19th century Oman had established an empire that included Zanzibar and Baluchistan now it’s called Tanzania and Pakistan.

� Oman's Economy :

Poor, isolated and subsisting mostly on fishing and agriculture,

Oman now thrives on an economy driven by Oil Natural gas Copper Marble Limestone Gypsum and Chromium Sultan Qaboos has been modernizing the state since 1970, Building roads Schools Hospitals Plenty of affordable housing Along with some of the world’s strictest environmental regulations—all

of which helped keep the economy growing at a steady clip.

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Basic Economic Facts GDP : USD 57.8bn 2010 (Export Intelligence Unit [EIU] GNI per head : USD 23,731 (est. 2010) Annual Growth : 4.5% 2010 (EIU 2011) Consumer Price Inflation : 3.4% 2009 (EIU 2010) Major Industries : Oil, Natural Gas, Agriculture and Fishing Major trading partners : UK, Japan, UAE, South Korea, China, EU, Exchange rate : 0.385 Omani Rials: USD 1.00 (fixed rate)

Modernization

Sohar P ort is bound to help Oman transform its eco nomy significantly

Industrial production growth rate : 5.9% (2006 est.)

Electricity – production : 14.33 billion kWh (2004)

Electricity - production by source : fossil fuel: 100%

Electricity – consumption : 13.33 billion kWh (2004)

Electricity – exports : 0 kWh (1998)

Electricity – imports : 0 kWh (1998)

Agriculture – products : dates, limes, bananas, alfalfa,

Vegetables; camels, cattle; fish

Exchange rates : Omani rials per US dollar 0.3845

0.3845, 0.3845 0.3845

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OVERVIEW OF BUSINESS AND TRADE AT INTERNATIONAL LEV EL

In 1993, First time Oman and Yemeni were started join commercial bank for the purpose of trade and investment relation. After Oman country signed an economic and trade agreement with Ukraine but then after Oman signed joint venture with Iran in oil industries and letter with Arab emirates then Oman countries started trade with different country like sultan and France (oct 1995) , china (march 1995), Sweden (July 1995) and united kingdom (nov 1995)

After Oman started investment transference with different country like Germany ,

Egypt, France, Italy

fiscal transference with France, India, Jordan, Kuwait and Pakistan

Oman country has well developed in export & import at international level. in world, the rank of Oman country in doing business is 49th.many product are an import and export in different country and it has some partner of import and export are as following.

Export partner : china, south Korea, Japan, Thailand

United Arab Emirates, united state, Iran

Import partner : united Arab Emirates, japans, united states Germany India

Oman is member following imilrnallonal organization

WTO : World Trade Organization UNO : United Nations Organization OIC : Organization of the Islamic Conference GCC : Gulf cooperation Council

International and regional trade associations of Om an

It was established in1982 to promote Individual Corporation for its member’s countries; The Gulf-Corporation-Council (GCC) involves Oman and other five Arab countries of the Arabian Gulf.

1. Bahrain 3. Qatar 5. United Arab Emirates.

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2. Kuwait 4. Saudi Arabia

Foreign trade overview

Oman’s economy is very open, able to accessed rate which varies between 80% to 100%.Oman’s governments wants to modify free trade agreement with Japan and China along the same lines as those signed with the USA in September 2006.

Custom duties are relatively very low and it is very simple to enter in the market without any trade barriers in the country but in some cases, 100% customs duty is charged on alcoholic beverages, tobacco, and poke products.

Goods produced in other Gulf-Corporation-Council (GCC), member countries enter free duty, if accompanied by certificates of origin.

Export import partners

EXPORT PARTNERS IMPORT PARTNERS

China - 26.8% United Arab emirates - 19.3%

South Korea - 15.2% Japan - 17.6%

Japan - 14.3% Us - 7.4%

Thailand - 10.4% Germany - 5.2%

United Arab emirates - 7.6% India - 4.1%

Us - 4.3%

Iran - 4.1%

List of Export import Goods

EXPORT GOODS IMPORT GOODS

Petroleum Machinery

Re exports Transport equipment

Fish Manufacture goods

Metals Foods

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Textile Live stock

Lubricants

Import tariffs After 2003, Oman implemented the Gulf-Corporation-Council unified custom law(UCL).The UCL charge 5% more custom duty on those product which are imported from non Gulf-Corporation-Council centuries including automobile but in the some cases they exempt custom duty like live Animal, Fresh fruit and vegetarian, seafood, grains, flours, tea, sugar, spices and Seeds for planting.

Trade barriers Some classes of goods require a special license (e.g., alcohol, firearms, and pharmaceuticals), while others are exempted from customs duty. Examples of the latter include currency, agricultural implements and material, books, and basic food commodities, such as rice and meat. All media imports are subject to examines by the Ministry of Heritage and Culture for morally or politically sensitive material. The Ministry of Information delays or bars publications if their content is deemed morally suspect or politically sensitive. In addition to agency requirements, the licensing of business activities can be time-consuming and complicated, and can significantly add to the time it takes to get goods to or out of market. Although local tax treatment was extended to local agents representing foreign firms, higher tax rates are still imposed on local branches of foreign companies, which sometimes hamper the competitiveness of U.S. exports in the Omani market.

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Imports Export regulations

Only those companies can imports goods which are registered under Omani stock market

Import documentary requirements are as follows:

1. Commercial invoice 2. Certificate of origin 3. Bill of lading.

Exports regulations : The following documents are required for exports:

1. Health certificates: 2. Steamship certificate:

INTERNATIONAL TRADE CONTROL DEPARTMENT

1. Department of State, Directorate of Defense Trade Controls (DTC)

2. Department of the Treasury, Office of Foreign Assets Control (OFAC)

3. Nuclear Regulatory Commission, Office of International Programs

4. Department of Energy, Office of Arms Controls and Nonproliferation, Export Control Division

5. Department of Energy, Office of Fuels Programs

6. Defense Threat Reduction Agency - Technology Security

7. Department of the Interior, Division of Management Authority

8. Drug Enforcement Administration, International Drug Unit

9. Drug Enforcement Administration, International Chemical Control Unit food and drug administration, office of compliance.

10. Food and Drug Administration, Import/Export

11. Patent and Trademark Office, Licensing and Review

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12. Environmental Protection Agency, Office of Solid Waste, International and Special Projects Branch

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PRESENT TRADE RELATIONS AND BUSINESS VOLUME OF DIFFERENT PRODUCT WITH INDIA AND GUJARAT

There are the international relations between India and Oman. India has an

embassy Muscat, the capital of Oman. The consulate of India was opened in Muscat

in 1955. Five years later, it was developed into a fully fledged in 1971. The India’s

first Ambassador was arrived in Muscat in 1973.

In 1972, Oman was also established the consulate in New Delhi. And a

general consulate was established in 1976 in Mumbai. Oman and India are linked by

geography, history and culture also. The Oman Government is acknowledged the

Indian expertise people.

Contents:-

1. Agreements

2. Gas Pipelines

3. Education

4. Air Link

5. Cultural Relations

6. Indian Community in Oman

7. Bilateral Trade and Economy

8. Joint Ventures of India – Oman

9. Bilateral Visits

10. Taxation Agreement

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Figures in US$ million

S. No.

Year 2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

1 EXPORT 630.97 939.43 779.04 1032.93 1151.70 1322.31

2 India’s Total Export

126414.4 163132.8 185295.6 178751.3 251135.9 304623.53

3 IMPORT 458.90 1141.46 1205.46 3499.89 4002.07 3329.89

4 India’s Total Import

185735.4 251654.1 303696.1 288372.8 369769.3 489181.28

5 TOTAL TRADE

1089.87 2080.88 1984.50 4532.82 5153.77 4652.19

6 India’s Total Trade

312149.9 414786.9 488991.7 467124.1 620905.2 793804.81

7 TRADE BALANCE

172.07 -202.03 -426.42 -2466.96 -2850.37 -2007.58

8 India’s Trade Balance

-59321.19 -88521.83 -118400 -109621 -118633 -184557

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Joint Ventures of India – Oman:-

�� The largest Joint Venture is started between India and Oman in 2002. It was also called Oman India Fertilizer Company (OMIFCo.).

�� The IFFCO and KRIBHCO which are related oil company which are the main investment arm in the Omani Governments.

�� The combination of both Bharat Petroleum Corporation Limited (BPCL) and Oman Oil Company Limited (OOCL) is called Bharat Oman Refineries Limited (BORL) which has set up in Oman. The project was also inaugurated in 2011.

�� There is the business volume between India and Oman in various sectors like oil and gas, mining, manufacturing, railway, steel, healthcare, IT & telecom, real estate, manufacturing, etc.

�� With a view to securing, the contracts of the Indian Companies have strengthened in Oman. The CIPLS is the Indian Pharmacy company is also strengthened in Oman by a new product.

�� Mahindra Satyam also deals with the Government of Oman. This company is also undertaking to deliver the main products of India and also to implement towards standardization and automation in its department in 2011.

�� The L & T (Larsen & Toubro) is the company who won a contract for the establishment of a gas processing facility and Petroleum development in Oman 20011.

�� The Sohar Industrial Port Company which is signed in an agreement with the Indian Steel Industries in 2011.

�� The Bank of Muscat was announced the plans to open new branches in Chennai in 2012

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�� The Infosys Company is the giant Information Technology globally. This company is also made a partnership with Oman’s Information Technology Company (OITC).

�� The Company of Oman that is Mohsin Haider Darwish (MHD) is entered in a partnership related to healthcare facilities and allied services industries.

Taxation Agreement:-

The Omani tax has been considered reasonable and pragmatic with taxpayers. The tax system has been undergone the government policy. Many of the government's revenues are generated from oil revenues so that, taxation is moderate. Therefore, Oman levies no personal income tax, estate tax or gift tax. All entities, both foreign and locally owned taxable in Oman.

1. Taxation of Companies:-

The most important tax in Oman is the tax on business income, which is based upon the Corporate Income Tax Law, 1981 in Oman. Taxable income includes business profit, interest, royalties and capital gains, and net income arising in Oman or deemed to risen in Oman after deducting all ordinary expenses, such as expenditure incurred in producing the gross revenue, bad debts, auditors' fees, depreciation, head office expenses, etc.

2 Tax Incentives

The Law of Profits on Tax on Commercial and Industrial Establishments (applicable to Omani companies in which there are foreign participants) was amended by Royal Decree in 1996. These amendments substantially reduced the tax rates applicable to Omani mixed public joint stock companies, as follows:

Amount of Taxable Income Approximate Tax Rate Before

Amendments

Tax Rates After Amendments

The first RO 30,000 Between 0 -10% Exempt The following RO 30,000 Up to 30% 5% Any amount in excess of the above Up to 50% 7.5%

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3 Tax-Related Incentives

Foreign investment projects are exempt from tax on profits. In Oman, An In addition, foreign investment projects may be exempt from customs duties on imports of machinery and equipment required for the establishment. Raw materials required for the productions of products unavailable in Oman which are also exempt from customs duties.

4 Customs Duties

The duties apply to all importers. Mostly, they are of 5 % of CIF value charged for most goods. Certain essential goods are exempt (e.g. gold, silver bullion, seeds, live plants, refined petroleum products, books, and various foodstuffs). Special 100 percent duties apply to alcoholic beverages, tobacco and pork products.

There are the business volume of Oman with India an d Gujarat. They are as under.

�� Biotech and Pharmacy.

�� Chemicals and Petrochemicals.

�� Development and Environment.

�� Engineering and Automobile.

�� Food and Agriculture business

�� Gas, oil and Power

�� Gems and Jewellery.

�� Information Technology.

�� Telecommunication

�� Travel& Leisure

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PESTEL Analysis

THE WORD PESTEL MEANS:-

1. Political Factor, 2. Economic Factor, 3. Social Factor, 4. Technological Factor, 5. Ecological Factor, 6. Legal Analysis

� POLITICAL FACTOR: OMAN is monarchy country. Oman is autocratic country where people has not right to fight against the sultanate. Sultan has power to appoint minister and can also dismiss him without any reason. OMAN has neither any political parties nor legislature.

� ECONOMICAL FACTOR: Economy of country describes its financial position.

Oman’s economy improved constantly in 1999 due largely to the mid-year upturn in oil prices. GDP: official exchange rate - $66.88 billion 2011

� SOCIAL FACTOR: Social factor of country describe country’s population, socio-culture, age, lifestyle of society etc.

CLASSES AND CASTELS

OMANI culture doesn’t have a castle system but it does operate in hierarchy based on family connection, wealthy, and educational. Sultan and his family are there on top of the management, the Al-Sa'id. This is followed by a large tribal group, the Al-Bu Sa'id. In country oil is first discovered by the merchant families which were wealthiest group .Out of which some person was INDIAN origin. Some families and tribes had built reputation for religious learning and meditation skills.

SOCIAL STRATIFICATION

“BADGE” is dressing of Omani culture. In Oman badge is finally turned to reflect each person region of origin. MEN’S clothing THAWB (consist of long, ankle-length shirt) which is various in style of collars and sleeves. WOMEN ARE clothing particular covering face and head covering is required for man and women

34

Food: The Omani people take a rice and fish of its main food. The meal of the morning is not important bread from the day before, and tea. The main meal of the day is in early to mid-afternoon. The meal of the mid afternoon is in the big dish and five to six people take the food. Generally the food of the noon is rice, tomato or tomato paste and meat or fish. The influence of Indian cooking is very strong. A variety of Indian restaurants are found throughout the country. In the capital area, there are a number of Western fast-food establishments, as well as a variety of French, Italian, Japanese, and Chinese restaurants.

Classification of society:

The cast system does not exist in the Omani culture, but it does operate in a hierarchy based on family connections, relatives’ wealth, and religious education. The top of the position of the triangle is a sultan and his immediate family.

Marriage, Family: The marriage system of the Oman is arranged. The Omani people preferred marriage to a cousin. The first choice is to a patrilateral cousin, and the second choice is to matrilateral cousin. Love matches are very infrequent.

� TECHNOLOGICAL FACTOR: In technological factor includes technology, remote working computing, internet and development and technological advancement of the country. Oman is an oil- producing nation and generates revenues from the petroleum products have been the backbone of Oman’s development over the last three decades of the 20th century. Oman also exports natural gas and generate revenue from this activities in the early 21st century.

� ECOLOGICAL FACTOR: The climate of the Oman is different according to the wind, the upwelling of coastal cold water and cyclones. The Oman country also desert sub tropical climate. The area receives seasonal rainfall as a result of the monsoon winds from the Indian Ocean saturated with cool moisture and heavy fog. In the Oman the monsoon season starts June and to the September. The winter of the country is very cool in coastal areas and relatively cold on the mountains. The main parts (Nejd) are hot and dry in summer and cool in the winter. There is more rain in mountain.

The rural people also generating income from the following activities:

Beekeeping. Ecotourism Rural handicrafts.

The major agriculture products include vegetables, fodders, and livestock and fruit trees. These are helpful for the 28% of the Oman’s population.

In Dhofar Governorate there is irrigated farming on the coastal part of the country near salalah. The total cultivated land is estimated at about 4000 hectares of which 3482 hectares cropped annually.

35

� Legal situation: The legal factors include government policies, rules and regulation of the government about the public. It also includes industrial policy government restriction about the public. The legal system of the Oman is derived from the combination of western and Arab civil codes with the Islamic law. The Oman police cover the country and it’s responsible for criminal, traffic, investigation, firefighting, the coast guard and immigration.

WTO & ITS IMPACT ON OMAN

The WTO is an acceding government. It must demonstrate that it is capable and willing to comply with WTO requirements and rules. The establishment of WTO is in Geneva. At present, the World Trade Organization (WTO) has 135 members. The Members of WTO from the Middle East that are contribute to the universality of the multilateral trading system.

The WTO is an acceding government. It must demonstrate that it is capable and willing to comply with WTO requirements and rules. Oman is very near to the end of its accession negotiations. The work has been done more than 95% and the remaining issues can be sorted out of weeks rather than months in matters. When the negotiations in Geneva have been completed, Oman will be invited to ratify its accession package formally. Oman has a choice between developing its tourism industry relying exclusively on domestic capital or with foreign investment. It goes almost without saying that development will be faster with the participation of foreign investors and the returns will be higher when foreign partners bring their tourists with them.

Negotiation relation between MEAs & WTO:-

There has been no evidence of conflict between the trade and environmental matters between MEAs & WTO. A successful outcome to these negotiations will nevertheless reinforce the relationship between the two legal matters. The negotiators have drawn from national experiences in the negotiation and implementation of Multilateral Environmental Agreements (MEAs) at the national level.

37

Financial Market in Oman

Introduction of financial Market of Oman:-

Equity and debt sources are the two major sources of external finance. Equity Holders are the actual owners of the company, while debt holders are the financiers of the company. The equity holders are the owners of the company and they decide the level of leverage the enterprise that should ideally have in the course of its business expansion. The commonly available sources of debt finance are either intermediated debt, borrowed debt market debt. And the borrowed debt is mainly from the commercial banks and financial institutions, or market debt. Brokerage:

Now recently there are 24 brokerage companies in Oman in which Bank Muscat, United Securities, and Vision securities dominant the top three positions for market share during 2010. In 2010 Bank Muscat held the largest market share of 13%, United Securities holding a 12.8% market share of 13% and Vision Securities share the 10.4%. As per latest data, in December 2010, Bank Muscat dominated the brokerage firms’ market share with a 24.7% share, selling 22.3mn shares and buying 25.8mn shares. As compared, United Securities had a 15.9% market share, selling 32.7mn shares and buying 27.1mn shares.

Central Bank of Oman (CBO):-

The Central Bank of Oman (CBO) is responsible to maintain the stability of the national currency. In 1975, the capital base of the CBO was 1 million Omani rail at the commencement of operations. The Omani banking system has been by several mergers. The commercial banks are incorporated locally. There were two specialized banks in operations at the end of year 2005 namely,

(1) The Oman Housing Bank (OHB)

(2) The Oman Development Bank (ODB)

The Oman Development Bank (ODB) plays an important role in agricultural sector in the Sultanate by financing various agricultural projects, which is said by Ministry of Agriculture. The share of loans provided for the agricultural and livestock projects registered about 24.3 % of the total loans granted by ODB in an average annually during the period 1998-2009. The role of ODB is contributed in supporting the modern technologies. The share of the loans directed to build greenhouses, own

agricultural equipment, establishirrigation that means constituted about 34 per cent of the total loans provided for the

Oman Capital Market Participation

Oman Capital Markets Forum Participants

Manufacturing

Sector

16%

Financial

Institutions

11%

Real

Estates/Investmen

ts

14%

cultural equipment, establish agricultural services units and introducing modern means constituted about 34 per cent of the total loans provided for the

Oman Capital Market Participation

Capital Markets Forum Participants

Pension Funds

5%Banks

Brokers/Asset Mgt

companies

36%

Manufacturing

Estates/Investmen Embasies

3%

Oman Capital Market Forum Participants

38

agricultural services units and introducing modern means constituted about 34 per cent of the total loans provided for the

Govt/Regulatiors

7%

Pension Funds

Banks

8%

Brokers/Asset Mgt

39

Ghanchi Karishma M. : 117570592001 Vasoya Komal.M : 117570592002 Zala Aditiba.N : 117570592003 Chudasama Yogiraj M : 117570592004 Ranghadiya Jitesh.K : 117570592006 Trivedi Bhavesh.J : 107570592005

TABLE OF CONTENTS

31%

20%19%

16%

14% assest manager & Brokers

Resaerch analyst

GM, Financial offecers

CEO, MD

Business manager and

marketing manager

Sr No. Particulars Page No.

1 Introduction of Oman Air 40

2 Organization Structure 47

3 Function of Oman Air 56

40

Introduction of Oman Air

Oman Air – “On the wings of technology and the stre ngth of its traditions.’’ Oman Air is the flagship company of the Sultanate of Oman’s Civil Aviation sector which is commenced operations in 1993. Starting off as a regional player, Oman Air is as an Oman’s national carrier has witnessed rapid growth since the time it was established. Oman Air has played a major role in making Muscat and a major traffic hub in the Middle East which is providing a fillip to commercial, industrial and tourism activities.

As a full-fledged commercial airline of Oman, Oman Air has the ability to maintain high performance standards in all aspects of its operation. The Oman International Services was established in 1970. Later, Oman Aviation Services was founded on 1981 and was extended services to the other airlines in terms of cargo handling, ground handling, etc.

The percentage of Govt. shareholding is 99.825% and others are 0.175% in Oman Air. The Oman Air fleet concerned of most modern and fuel- efficient aircraft with aesthetically designed interiors. Oman air has been propelled by investment in new technology, planning and product innovation to the forefront of the aviation industry.

4 Import regulation of Oman Air 58

Comparative position of Oman Air with India &

Gujarat

63

5 Introduction of CAPA 75

6 Present position & Trend of Business of Oman

Air with India & Gujarat

85

7 Opportunity in future in India 89

8 Market opportunity of Business in Oman 91

9 Conclusion 93

10 Bibliography 94

41

Oman Air strives hard to enhance the products in terms of convenience, efficiency and service so that flying with Oman air is consistently an enjoyable experience. Standards of quality and safety are a continuous and uncompromising process in every department of Oman Air.

Oman Air is the national airline of Oman country. It operates scheduled domestic and international passenger services, as well as regional air taxi and charter flights at Muscat. It is the main base of Muscat International Airport. It is a member of the Arab Air Carriers Organization. Oman Air has become the first airline in the world to offer both mobile phone and Wi-Fi Internet services on selected routes on 1 March, 2010.

Destinations Covered:-

Currently Oman Air operates direct international flights to major Gulf destinations such as Abu Dhabi, Bahrain, Doha, Dubai, Kuwait and Riyadh from Muscat. The airline also flies to ten destinations in India - Mumbai, Chennai, Kochi, Thiruvananthapuram, Hyderabad, Delhi, Lucknow, Bangalore, Kozhikode and Jaipur, etc. Oman Air also flies in Cairo in Egypt, Beirut in Lebanon, Amman in Jordan, Tehran in Iran, London in the UK, Frankfurt and Munich in Germany, Paris in France and Milan in Italy. The airline operates domestic flights from Muscat to Khasab and Salalah. Oman Air lends to cover a distinct touch of its legendary traditions of hospitality.

At Home in the Air – With Oman Air

Oman Air go to great lengths to make our passengers feel at home and ensures that they enjoy every moment of their travel with Oman air. On all its international flights, they offer their on-board Duty – Free shopping facility, enabling passengers to choose from a select, world-class range of quality merchandise.

Oman Air – Today

Today, Oman Air stands tall with a list of achievements to its credit. It is the first airline in the Gulf to introduce the brand new Boeing NG 737 aircraft series. Our safety record is a matter of pride. Oman Air has excellent on-time performance - OTP exceeding 95% and is striving to better its track record, in times ahead.

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Oman Air Profile

Founded : 1981

Hubs : Muscat International Airport

Frequent-flyer program : Sindbad Frequent Flyer

Airport lounge : Oman Air Lounge

Fleet size : 30 (+12 orders and 5 Options)

Destinations : 42

Company slogan : Modern Vision. Timeless Traditions...

Parent company : Government of Oman

Headquarters : Muscat International Airport Muscat, Oman

Key people : Wayne Pearce (CEO)

Website : www.omanair.com

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History of Oman Air

Oman Air can look back on an eventful history. It includes many famous moments but the course of events has been not always smooth. The history is always a reflection of people and their times. The challenges facing air transport have become increasingly complex by Oman Air, yet it has always found the strength to learn and renew itself. That ability has been earned by the company its leading position in the international airline business.

Oman Air’s origins back to 1993. Since then, they have been maintaining a very high standard of professionalism. Oman Air has created a niche for itself on all operating routes. The company has earned an enviable reputation in the region with its team of dedicated and skilled workforce. Today, Oman Air is becoming an increasingly familiar sight at international airports. Oman Air is the designated carrier of the Sultanate of Oman which is recognized for its strong market presence and respected for its professionalism and recommended for its punctuality and service excellence.

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Development of Oman

Date Event

1993 Oman Air was established.

First Oman Air flight to subcontinent, to Trivandrum (November).

1994 Oman Air operates flights to Kuwait & Karachi (January).

1995 Oman Air commences flights to Mumbai, India.( July) .

1997 Oman Air flies to Chennai, India (June).

2000

Oman Air opens Wings of Oman Lounge for Business Class Passengers at Seeb International Airport in Oman. Oman Air introduces 4th Indian destination, Oman Ai r is the first International foreign Airline to fly to Kochi, Indi a (August).

2003 Oman Air Flight Operations Training School set up.

2004 Oman Air commences scheduled services to Bahrain International Airport (April). Oman Air start 4 weekly flight to KWI (September).

2005 ATR stopped flying commercially - only KHS (April).

2008 Oman Air unveils new uniforms (September).

Oman Air commenced operations to Colombo, Sri Lanka (November).

2010 Oman Air becomes the 1st airline in the world to introduce both OnAir internet and On-air Mobile phone service (March).

2012 Oman Air commenced operations to Tehran (September).

2013 Oman Air received its 15th B737-800 (January).

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Corporate Mission Statement of Oman Air

"Modern Vision, Timeless Traditions..."

Oman Air is committed to exceed the expectations of its valuable customers and stake holders by building a “First Choice Airline”. Their main aim is to provide a safe, reliable and seamless flying experience and enhanced by warm and friendly customer services, without compromising on quality and profitability. As the national carrier, Oman Air is committed to support the local community and to promote in-bound tourism to the Sultanate.

Mission Statement

Manage, maintain, operate airports and related businesses with a focus on SAFETY, SECURITY and PROFITABILITY to deliver HIGH QUALITY of SERVICES to ALL CUSTOMERS and BUSINESS PARTNERS while fostering a culture of INNOVATION and valuing HUMAN RESOURCES. Vision Statement

To be a world class organization in airports management and related businesses, contributing to the prosperity of the Sultanate of Oman.

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Awards

It is a great honor to receive such approvals; nonetheless, they remain committed towards excellence in providing service that goes beyond their expectations as recognition of the service standards of Oman Air. The following awards are as above.

�� Oman Air was awarded the “Golden award” for the Technology & Development in 2010 which was held by the French Business Travel Award at the International French Travel Market.

�� “Silver Award” was won by Oman Air as the Vision Awards at the Annual Report Competition organized by the League of American Communications Professionals (LACP) in 2009.

�� “Gold Award” for Oman Air’s Annual Report was awarded the Airlines category at International Awards in 2009.

�� Oman Air 2010 Annual report wins “GOLD Award for excellence” within its industry on the development of the organization’s annual report for the past fiscal year in 2010.

�� Oman Air has won the “Best In-flight Connectivity & Communications

award” in 2011.

�� Oman Air has received the “Gold Award” for by Qatar Airways and Korean Air at Top France 2011.

�� Oman Air was awarded the title “Best Airline Worldwide 2011”.

�� Oman Air has won the “Most Promising New Foreign Airline of the Year”

award that was held by the Malaysia Airports Berhad at a ceremony held in Kuala Lumpur.

�� Oman Air has been awarded “Best Business Class Airline”, Middle East' in

the prestigious Business Destinations Travel Awards in 2012.

�� Oman Air has, for the second year running, won “Best Business Class Airline Seat” at the prestigious World Airline Awards™, which was run by Skytrax.

48

Organization Structure

49

Oman Air Board of Directors Dr. Juma bin Ali Al-Juma Chairman H.E. Shaikh. Said bin Ali Al -Mas'hali Undersecretary for Civil Aviation Affairs, Ministry of Transport and Communications Deputy Chairman Brigadier/ Ali bin Abdullah Al -Marhoon Director General of Airport Security, Royal Oman Po lice Board Director Air Commodore/ Maktoom bin Salim Al -Mazrooi Director General of Operations, Royal Air Force of Oman Board Director Mr. Khalifa bin Said Al -Abri

Director General of Private Sector Affairs, Ministr y of National Economy Board Director Mr. Mohamed bin Abdullah Al -Sinani

Director General of Planning and Information, Minis try of Tourism Board Director Mr. Abdulrahim bin Salem Al -Harmi Director General of Meteorology and Air Navigation, Ministry of Transport and Communications Board Director Mr. Kumail bin Majed Al -Musawi Director General of Financial Planning, Ministry of Finance Board Director

50

Oman Air Management Team Mr. Vic Allen Acting Chief Executive Officer

Mr. Saeed Khamis Al -Zadjali Technical Services General Manager

Mr. Ali Zaid Al Balushi Operations General Manager

Eng. Khalfan Said Al Shueili Readiness General Manager

Mr. Aimen Ahmed Al Hosni Muscat International Airport General Manager

Mr. Samer Ahmed Al Nabhani Commercial Operations General Manager

Dr. Moaman Mohammed Al Busaidi Information, Communication and Technology General Manager

Mr. Mahesh Mankodi Finance and Procurement General Manager

Mr. Salim Awadh Al Yafaei Salalah Airport General Manager

Mr. Bader Abdullah Al Hashmi Chief Audit Unit

Mr. Abdullah Saleh Al Yafaei HR and Admin General Manager

Mr. Abdulwahab Abdulkarim Al Balushi

Security General Manager

Mr. Mohammed Issa Al -Harthy Manager Chairman Office

Mr. Salim Ali Al Harthy HSE Manager

51

Main Airports in OMAN

1. Adam Airport

Adam Airport is the smallest and the first in the inside region which is situated at a site 30km from Adam town. Adam Airport was the first of the regional airports to open and became partially operational with the beginning test flight from Muscat landing at Adam Airport as of the 23rd July 2010.The airport is expected to be operational by 2014. Adam Airport Facts

Description Facts

Terminal Building Capacity 250,000 Passengers per annum

Total Gross Floor Area Terminal Building

8,000 sqm

Car Parking Capacity 225

Air Traffic Control Tower Height 25m

New runway Specifications 4,000 x 60m

Aircraft Stands 6

Check -In Counters 5

Self service check -in kiosk 1

Arrivals Carousels 1

In-Flight Catering Capacity 350 als per day

52

2. Ad Duqm Airport

Currently Ad Duqm Airport is being past as part of a larger plan to set up a modern seaport in the south east of Oman. It is a site of potentially substantial investment and industrial development related to the oil shipping industry with a dry dock being built. The new airport is primarily expected to handle business and traffic but may also become part of the tourism industry in Oman. The new Ad Duqm Airport will serve as a gateway into a region with important economic, industrial and commercial potential. Besides providing the business investors, company executives and government officials with a fastly and convenient mode of transport. The airport also has the potential to open up Ad Duqm to tourism related investment. The coastal city of Ad Duqm is planned to be Oman’s next major industrial and shipping hub. The airport is expected to be operational by 2014.

Ad Duqm Airport Facts

Description Facts


Total Gross Floor Area Terminal Building 13,350 sqm




Aircraft Stands 4


Self service check -in kiosks 4


Cargo Terminal Capacity 50,000 Tons per annum

In-Flight Catering Capacity 700 meals per day

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3. Ras Al Hadd Airport

Ras Al Hadd Airport is located near the town Sur in the Sharqiya region aims to offer tourists the chance to avoid long road commutes from Muscat. It is part of a larger plan for eco-tourism integrated projects such as the one related to the endangered Green Back turtles. The beaches at Ras Al Jinz are home to some of the rarest turtles in the world. These turtles may be observed in their natural habitat and this attracts thousands of visitors every year in Oman. The airport will compliment the development of a number of eco-tourist resorts along Oman’s eastern coast. A concentrated effort exists to develop the area in a manner consistent with luxury and eco-tourism which will attract selective tourists who have a specific interest in eco-tourism to Oman. The airport is expected to be operational by 2014. Ras Al Hadd Airport Facts

Description Facts






Aircraft Stands 6




In-Flight Catering Capacity 700 als per day

54

4. Sohar Airport

Sohar Airport situated at 10km northwest of Sohar will help remove the 2 hour long drive from either Muscat or Dubai. In recent years, Sohar and the wider Batinah region have attracted industrial and commercial infrastructure investments. Moreover, cargo to Sohar is expected to raise in volume due to expected congestion at Sultan Qaboos Port in Muscat. The airport will also serve as a new gateway for passenger, cargo and courier traffic in northern Oman and a domestic and emergency alternative to Muscat International Airport. It is being built within the proximity of the major commercial, industrial and economic centres of Sohar including the Port of Sohar Special Economic Zone. It wills complex the future plans for a major expressway and rail network which will underpin the port city’s eventual transformation into a major industrial and economic hub on the Batinah coast. The airport is expected to be operational by 2014.

Sohar Airport Facts

Description Facts





New runway Specifications 4,000 x 60m Aircraft Stands 2




Cargo Terminal Capacity 50,000 Tons per annum

In-Flight Catering Capacity 350 meals per day

55

Oman Airways in India Oman Air flights serve many cities within India. This includes Bangalore, Hyderabad, Jaipur, Delhi, Kochi, Kozhikode, Lucknow, Trivandrum, Mumbai and Chennai. The hubs in India that serve for the Oman Airways are:

Rajiv Gandhi International Airport, Hyderabad

Jaipur Airport,Jaipur.

Bengaluru International Airport, Bangalore

Chennai International Airport

Cochin International Airport, Kochi

Indira Gandhi International Airport, Delhi

Chhatrapati Shivaji International Airport, Mumbai

Amausi Airport, Lucknow

Calicut International Airport, Kozhikode

Trivandrum International Airport, Thiruvananthapuram

Oman Air Offices in India

1) Bangalore Airport Office: Passenger terminal Building, BIAL, Airport Devanahalli, Bangalore 2) Calicut

Airport Office: I-37, ITB, Calicut International Airport, Calicut Airport (PO),

Malappuram Dist., Kerala 673647

3) Chennai Airport Office Anna International Terminal, IInd Floor, Meenambakkam,

Chennai -600 027 4) Hyderabad

Airport Office: AO-14, Level-G, Passenger Terminal Building,

Rajiv Gandhi International Airport, Shamshabad - 501 218, R.R.Dist

56

5) Jaipur Airport Office Oman Air Office,1st floor, Civil Airport, Sanganer, Jaipur 6) Kochi

Airport Office International Terminal, Cochin International Airport, Nedumbassery,

Cochin - 683111

7) Lucknow

Airport Office : Oman Air, First Floor, New Terminal Building,

Amausi Airport,Lucknow

8) Mumbai Airport Office : 2nd Floor, Chhatrapati Shivaji International Airport Terminal 2

B Sahar, Andheri (East) Mumbai - 400 099

9) Delhi Airport Office No. 9 New Airlines Office, Indira Gandhi International Airport,Visitors

Lounge, Terminal II, Departure level, New Delhi - 110037 10) Trivandrum

Airport Office: Trivandrum International Airport, Trivandrum - 695 008.

11) Trichy

City Office: GSA: RL TRAVELS, Ist Flr., Hotel Gajapriya Complex, ` No.5 & 6 Royal Road, Cantonment, Trichy 620 001

57

Functions of Oman Air at the airport

�� To Manage the Airport Assets, Facilities, Infrastructure, Projects and Maintenance Plans.

�� To Manage the Aerodrome Certification & Compliance, Emergency Planning, Capacity Management and Customer Services.

�� To be ready for the new airport and to ensure that OAMC is fully manned, prepared and equipped to operate all the new airports.

�� To Know about Airfield, Terminal, Flight Information and Fire Fighting Management.

�� To Managing all the commercial areas such as retail, real estate, fuel farm, concession agreements, car park, airport space adverting, corporate communications and airline marketing.

�� To Managing Information, Communications and Technology at the Airports.

�� Financial Management and revenue collection from aeronautical and non-aeronautical sources and expenditure payments.

�� Procurement policies and procedures.

�� Facilitate Human Resources and administration support for the corporate company

�� To provide Security facilitation and management.

�� Health, Safety and Environmental Management for all organizations operating within the Airport Boundaries.

The total staff strength at OAMC is 600 employees with an omanization level of 90%.

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Oman Airport Organization Functions Function Organizations

Airport Operator Oman Airports Management Company (OAMC)

Ground Handling Company Oman Air

Meteorology and Air Navigation Directorate General of Meteorology and Air Navigation, Ministry of Transport and Communication

Safety and Aviation Services Directorate General of Safety and Aviation Services, Ministry of Transport and Communications

Customs, Immigration, Security and Issuance of Visa on Arrivals.

Royal Oman Police (ROP)

Duty Free Shopping Muscat Duty Free (MDF)

Visa on arrival payment Travelex

Foreign Currency Exchange Travelex Jadded Exchange Travelex

Fuel Companies Al-Maha (Chevron Fuel) Oman Oil (Air BP Fuel) Shell

In-Flight Catering Oman Air

Line Maintenance Oman Air

Cargo Handling Oman Air

Hub Base Airlines Oman Air

Restaurants, Coffee Shops, Car Rental Companies

Various Concessionaires

Taxi Private

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Import regulations Of Oman Air:

Free import:

1. 2 litters/2 bottles maximum per family of liquor if imported by a non-Muslim,

� Penalties : more than 2 liters results in a fine of OMR 5.-. and confiscation;

2. Meat and meat products: same regulations as for Pets.

� In addition an Islamic slaughter certificate is required;

3. Video tapes : 8 tapes for personal use. However, Customs may confiscate tapes. Tapes will be sent to the Ministry of National Heritage and Culture for verification (takes about 1 week).

Prohibited:

1. Bees (unless holding Ministry of Agriculture and Fisheries clearance);

2. Dates: all types of dates including shoots of date palm, coconut, ornamental palm trees, all parts thereof;

3. Firearms and toy weapons (unless holding security ministry clearance), swords or knives and flammable materials (i.e. gasses). Valuable items may be exempted, subject to assessment by security officer;

4. Obscene books;

5. Non-canned foodstuffs (vegetables, fruit, and non-alcoholic beverages) from countries with cholera infected areas (unless holding Ministry of Agriculture and Fisheries clearance).

60

Crew member’s customs regulations:

Same regulations as for passengers apply.

Pets:

Must be accompanied by:

� Import license from the Ministry of Agriculture and Fisheries � Government Health Certificate attested to by the country of origin (valid during

the import period) � Immunization Certificate against rabies stating that immunization is more than

1 month old but less than 6 months old.

� Dogs and cats arriving from rabies infected areas will be quarantined for 6 months. Apply to Quarantine Veterinarian at Seeb International Airport (Muscat) in case of doubt regarding rabies infected areas;

� Any imported living animals/birds not complying with above mentioned conditions are subject to quarantine or other suitable actions.

Baggage Clearance regulations:

Baggage is cleared at the first airport of entry in Oman.

Exempt: baggage of transit passengers with a destination outside of Oman.

Airport Embarkation Tax

Airport Tax: OMR 5. - has to be paid upon departure if not collected at ticket issuance. Exempt : children up to 2 years of age.

Currency rules

Currency Import regulations:

Same regulations as per Export apply.

Currency Export regulations:

Local currency (Rial Omani-OMR), foreign currencies, precious metals/stones or bearer negotiable instruments (BNI), no restrictions up to OMR 6,000. - (or equivalent). Goods must be declared when its value is equivalent or higher to OMR 6,000.-.

� Prohibited: Israeli currency.

61

Trade barriers of Oman air Some classes of goods require a special license (e.g., alcohol, firearms, and pharmaceuticals), while others are exempted from customs duty. Examples of the latter include currency, agricultural implements and material, books, and basic food commodities, such as rice and meat. All media imports are subject to examines by the Ministry of Heritage and Culture for morally or politically sensitive material. The Ministry of Information delays or bars publications if their content is deemed morally suspect or politically sensitive. In addition to agency requirements, the licensing of business activities can be time-consuming and complicated, and can significantly add to the time it takes to get goods to or out of market. Although local tax treatment was extended to local agents representing foreign firms, higher tax rates are still imposed on local branches of foreign companies, which sometimes hamper the competitiveness of U.S. exports in the Omani market.

Import tariffs After 2003, Oman implemented the Gulf-Corporation-Council unified custom law(UCL).The UCL charge 5% more custom duty on those product which are imported from non Gulf-Corporation-Council centuries including automobile but in the some cases they exempt custom duty like live Animal, Fresh fruit and vegetarian, seafood, grains, flours, tea, sugar, spices and Seeds for planting.

62

Oman Air Cargo

The Oman Air Cargo was launched in Mar, 2009. It is in the process of being defined as a brand.

A key driver for the immediate success of the Oman Air cargo was the decision to work with professional General Sales & Service Agents to market of its product. Cargo share in the overall Oman Air’s revenues has improved from less than 1% to 12% of the overall from 2011 to 2012.

In early 2009, The web-based IT-platform ‘Cargo Wings’ System was chosen and gone live enables Oman Air Cargo is to create the basis of an integrated process linking our Planning, Sales, Handling, Capacity Control, Pricing and Accounting. As we progress we will look for more sophisticated revenue management tools.

Oman Air Cargo has plans to introduce a range of value-added products for Oman logistics customers e.g. express Courier, Cool Chain, Valuables, etc. Oman Air will work towards improving the existing infrastructure at the Muscat Hub to offer special handling services besides the current airport-to-airport product.

Oman Air Cargo has been able to make significant inroads into online and off-line markets since 2009 and Cargo Industry is slowly but surely recognizing Oman Air as a serious partner for air cargo logistics. With the potential of the Sultanate of Oman and development plans of Muscat and Salalah, we are prepared to capitalize on the potentials yielded by the expanding Oman Air’s fleet and network – for passenger and cargo services.

Oman Air Cargo Services

• Air Freight services from Airport to Airport • Road Feeder Services - Pan GCC, Pan European & Pan India

• Mail / Courier • Sea - Air services Connecting (Muscat - Salalah - Sohar)

63

Oman Air Cargo Products

General Products

• Cargo • Courier • Mail

Special Products

• Valuable Transport • Cool Chain • Dangerous Goods Transportation • Live Animals

64

Comparative Position of Oman Air with India & Gujar at

Air Links:-

The transport and Communications Minister visited in Mumbai in 2012. And he has also identified the areas of cooperation in the field of shipping or ports. Currently, The Air India, Indian Airlines and Air India Express are operating 34 weekly flights.

The Jet Airways is also operating 21 weekly flights. The India Go has also started 4 weekly flights from Muscat to Mumbai in 2011. And also the 77 flights are operated by Oman Air per week to 10 destinations in India.

Oman Air is the national or international airline of Oman which is based on the grounds of Muscat International Airport in Seeb, Muscat. It operates scheduled domestic and international passenger services as well as regional air taxi and charter flights. The main base of Oman Air is Muscat International Airport.

Oman Air is a member of the Arab Air Carriers Organization. Oman Air has become the first airline in the world to offer both mobile phone and Wi-Fi Internet services on selected routes on 1 March, 2010. Oman Air won the Gold award for the "Airline of the Year" at France’s Laurier Voyage d’Affaires in 2011. When Oman International Services (OIS) was established, it can trace its root back to 1970. At Beit Al Falaj Airport, the company became a civil aircraft ground handling provider.

In 1972, an OIS moved its operations to the new terminal at Seeb International Airport. The company took over Gulf Air’s Light Aircraft Division in 1977, before establishing Aircraft Engineering Division in the same year. Rapidly expanding civil aviation industry of Oman led OIS to the building of several facilities – including hangars, workshops and in-flight catering – to cater for the increase in activity.

Oman Aviation Services became a joint-stock company in 1981. OAS also purchased 13 aircraft from Gulf Air. Oman Aviation Services jointly commenced jet services, along with Gulf Air, to Salalah. The company purchased new equipment, including the Cessna Citation and new facilities to help it improve its services. The Muscat International Airport serves as the international hub for the Oman Air. An Oman Air plane is seen parked at the airport. As of December 2012, Oman Air operates 296 flights a week within a network of 42 destinations in 19 countries out of its primary hub in Muscat.

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Oman Air flights

Oman Air (airline code WY) started operation in 1993 as a regional airline and which was built a network of flights around the Middle East and India, until it entered the international market by launching flights to London and Bangkok in 2007. The Government of the Sultanate of Oman now owns 99.61% of Oman Air, with the remaining 0.39% owned by other investors. Oman Air’s hub is in Muscat. The Oman Air operates a relatively new regional fleet of B737-800, B737-700 and ATR 42-500. Long-haul flights are operated with new Airbus A330s

Oman Air has long experience in flying their passengers from A to B efficiently, safely and comfortably. Long haul flights especially can be trying for people who are not used to sitting down for long periods with little to do. Oman Air flights are expensive. As with other airlines the passenger can buy superior class flight tickets that will give them more room, more choice in the catering services available and many other extras but the standard service is very comfortable indeed.

If the passenger is trying to keep within a strict budget then they will find Oman Air cheap flight tickets available through ebookers. If passengers are looking for flights to a popular destination then on their web page, they will find a useful flight comparison table listing the cheapest flights available every day for that destination that will no doubt include some Oman Air cheap flight tickets.

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About Oman Airlines

An impeccable medley of committed people, services and customers has made Oman air one of the world's premier airlines. The Oman Air provides safe and reliable air transport services for passengers and cargo reigns supreme in Oman airways which remain the first airline in the gulf countries to bring in high-tech Boeing 737 NG aircraft series. Oman airways are the designated transporter of Sultanate of Oman which has come a long way over the last 14 years in meeting the demands of customers worldwide.

Oman airline is much acclaimed for its professional attitudes and services

excellence which decked with well-trained employees. The Oman Air is the partners with many carriers all over the world and connects almost all the major destinations of the world. It has many achievements to its credit. It is the first airline in the Gulf to introduce the brand new Boeing NG 737 aircraft series. The safety record of it’s a matter of pride.

Oman Air currently operates direct international flights to major Gulf destinations such as Abudhabi, Bahrain, Doha, Dubai, Jeddah, Kuwait and Riyadh from Muscat. The airline also flies to eight destinations in India – Mumbai, Chennai, Kochi, Thiruvananthapuram, Hyderabad, Delhi, Lucknow and Jaipur and Ahmedabad. It also flies to Chittagong in Bangladesh and Karchi in Pakistan.

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Oman Air 2012 revenues

In 2011, Oman Air has registered a record passenger revenue growth of 47% in the first six months. The airline's cargo revenue increase between January and May 2012 which was exceed the 28%increase in 2011.

Oman Air was generated greater revenues which was carried more passengers and transported more cargo between January and May 2012

Oman Air Management (OAM) is announcing a new service between Muscat and Tehran, Management. The OAM said that competitive pricing and regular special offers, both online and in partnership with travel industry partners which have attracted many new customers, whilst e-booking and web check-in have added value to the services.

Oman Air owns 26 aircrafts and anticipates the delivery of two new Embraer E175 regional jets and 6 new Boeing 737s are expected to be delivered in 2014 and 2015 respectively. In addition, the airlines expect to receive six more Boeing 787 Dream liners from 2015. Currently Oman Air has code-sharing agreements with Malaysia Airlines and Emirates Airlines.

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Facilities of Oman Air in different Class:-

(1). Long-haul First Class:-

Long-haul First Class is found on international or long routes. This class of service offers more comfort than others, which usually include:

�� 10 to 30 extra inches of seat pitch (legroom) compared to Business Class. �� 1 to 2 extra inches of seat width compared to Business Class. �� Electrical seats controls to adjust recline position, leg rest and lumbar support. �� Large personal TV screens and more viewing options. �� Laptop Power Ports. �� Premium Food and Wine Service. �� Increased cabin staff to passenger ratio

Types of Long-haul First Class seats:-

Recliner Seats:

These seats do not offer the significant recline of the Lie-flat and Flat Bed Seats but still offer an excellent space and comfort. Lie-Flat Seats:

In airlines market, these seats having 180 degrees of recline in their fully reclined position. They are slightly angled and do not lay completely horizontal. Passengers often find these seats to be extremely, comfortable for relaxing and working but not comfortable to sleep when in the fully reclined position because of the awkward angle. Flat Bed Seats:

When fully reclined, these seats are completely horizontal which creates bed that is fully flat. These seats are always very comfortable both as seats and beds. Suites:

These seats offer in privacy and comfort. Each suite is essentially for its own mini-cabin which includes a fully-flat bed, work station and television

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(2). Short-haul First Class:-

People who have flown or seen International Business class which are often disappointed by Short-haul First/Business Class. There are only small improvements over most coach class seats. Many customers are sad to see that there aren't any leg rests. These days that it is more common to see a frequent flyer upgraded into these seats than a true paying First Class customer. Airlines have started offering these seats for their customers that pay for full fare coach tickets as they try to increase their revenue from these seats. The following features of this class.

�� No Middle Seats.

�� 5 to 7 inches of Extra Legroom.

�� 2 Extra inches of Seat Width.

�� Food Service & Free Alcoholic Beverages are used on most flights.

(3). Premium Economy:-

Some airline carriers offer the Premium Economy as a separate class of seating and service that differs from standard Economy. Premium Economy is found mostly on international flights and compared to standard Economy that offers about 5-7 inches of extra legroom as well as additional facilities which can include:

�� 1 to 2 extra inches of seat width. �� 2 to 3 extra inches of seat recline. �� Adjustable headrests, leg rests, or lumbar support. �� Larger personal TV screens. �� Laptop Power Ports. �� Premium Food Service.

According to Oman Air, a Premium Economy fare is generally 65% less expensive than a Business Class fare. In terms of space and services, these two classes are very different with Business Class which offering up to 50% more legroom which significantly greater recline, more substantial leg rests and headrests, and superior food and wine offerings.

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(4). Business Class:-

Business Class is found mostly on international routes and planes that are confirmed for long-haul travel. This class of service offers significantly more comfort and the facilities of this class are better than standard Economy, Premium Economy, and Domestic First Class. The following contents are which are usually included in this class.

�� The seat pitch (legroom) is double as compared to Economy.

�� 2-3 extra inches of seat width compared to Premium Economy.

�� There are more degrees of recline compared to Economy.

�� Electric seat which controls to adjust recline position, leg rest and lumbar

support.

�� Larger personal TV screens and more viewing options.

�� Laptop Power Ports facility.

�� Premium Food and Wine Services.

�� Amenity kits including socks, eye masks and toiletries.

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Special Services:-

Oman Air makes every effort to transport and provide smooth travel experience for all its customers, particularly those with special needs or disabilities. Such customers may request for assistance through their reservation representatives assistance while traveling, such as transportation to and from gates either by wheel chair or by electric cart (according to the airport facility), boarding assistance and dietary needs.

Oman Air strives to accommodate and assist all its customers with special needs. However, due to certain safety regulations they would not be able to assign seats at the emergency exists which form part of emergency exit routes to passenger under the following categories.

Children Expectant Mothers Customers with limited mobility

INFANT & CHILD CARE:-

Oman Air travel is not recommended within the first 7 days of birth. Infants less than 7 days old will only be accepted when traveling for emergency medical treatment with an approved Medical certificate. Only one infant is permitted per adult passenger. Oman Air is able to provide the customer with these basinets for their infant, it advise that you make special request at the time of reservation that these seats are already released to other passengers.

Apart from baby meal, Oman Air does carry a limited stock of toys/games for its young customers less than 5 years. Therefore, they suggest the customers that may also bring along any other toys/games that can keep the child entertained during the flight.

EXPECTANT MOTHERS:-

Oman Air understands the importance of the third trimester of expectant mothers. Therefore, any travel from 28 weeks to 34 weeks, shall be asked to present a “Fit to Travel” certificate from a medical practitioner, which confirms the expected date of delivery and fitness to fly. The certificate should be issued by the doctor within 7 days of flight departure and it should remain in the possession of the expectant mother at the time of check in.

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UNACCOMPANIED MINORS:-

Oman Air helps unaccompanied minors between the ages of 5 and 16, through all the complicated airport details to ensure that the customer’s child enjoys a safe and happy journey. The minors arrive at airport check-in, until they reach their final destination; all children are escorted and supervised by Customer Service Staff of Oman air.

Unaccompanied minors are accepted on all Oman Air flights. If a journey involves a connection, the minor shall be permitted only for immediate continuous space with all sectors confirmed. Oman Air will provide them with a UM Pouch to keep all travel documents and an “UM” badge for their child to wear. “Carriage for Handling” advises form would also be made available for them to provide the following information:

�� UM Passenger’s name, age, sex and languages spoken. �� Details of journey covered by the Oman Air ticket. �� Name, address and telephone number of contacts. �� At the transfer station, if required. �� Declaration of parent or guardian and signature. �� Confirmation for release of minor from the Oman Air custody. �� The original form will be retained by the Oman Air office. �� Two copies would be attached to the ticket. One for the departure customer

service team and one for arrival customer service team.

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Chauffeur Drive Service:-

At Oman Air, the customer believes in offering the premium travelers a host of distinctive services that will enhance their travel experience. Their First and Business Class passengers can now avail of the company’s complimentary Chauffeur Drive airport transfer service at selected destinations across its network. With an attentive service that the customers comes with a personal chauffeur, luxury vehicles and speedy door-to-door transfers, the passengers can now travel in comfort and style with Oman Air.

The chauffeur drive service is offered with the compliments for a fixed distance to and from each airport. However, if the passengers wish to travel further than the fixed distance, the Oman Air can arrange for this at a charge that they would pay directly to the chauffeur. The Chauffeur Drive service is offered at the following cities they are as under.

Destination Airport Distance Included India Bangalore Bangalore International Airport Within 50 Kms Chennai Chennai International Airport Within 50 Kms Delhi Delhi International Airport Within 50 Kms Hyderabad Hyderabad International Airport Within 50 Kms Mumbai Mumbai International Airport Within 50 Kms Oman Muscat Muscat International Airport Within 60 Kms

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Baggage Services:-

Oman Air's baggage policy is designed to expedite the check-in process, and alleviate congestion in the aircraft during the boarding process to facilitate on-time departure of your flight. Upon delivery of the baggage, which the passenger wishes to check-in, the passenger shall take custody of, and issue a “Baggage Identification Tag” which will be placed on each piece of their checked in baggage.

Acceptance Policy

• Oman Air will accept the customer’s luggage only upon presentation of a valid ticket for travel on Oman Air flight.

• The baggage will be checked-in to at final destination. • The Baggage must be packed and secured in suitcases or similar containers

in order to guarantee safe transportation. • The Baggage handed over to the check-in agent at the desk which should

have been packed by their own self.

Free Baggage Allowance

Oman Air provides the following free baggage allowances when traveling solely on Oman Air services:

• First Class 50 kilograms • Business Class 40 kilograms • Economy Class 30 kilograms

Size and Weight Restrictions

The maximum accepted weight for any single piece of baggage is 32 Kg by Oman air. Any piece of baggage exceeding this weight allotment shall not be accepted for check-in process. Total Maximum outside Linear Dimensions (length + width + height) may not exceed 158 cms or 62 inches. The Bags are larger than the size specified may require special handling. It is necessary to make enquiries from any travel agent or Oman Air due to restrictions if the customer wishes to carry any item larger in size or excessively heavier in weight prior to their arrival at the airport. Larger or heavier items may be shipped as cargo.

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Hand Baggage

For the safety reasons and restricted space, Oman Air allows maximum of one hand baggage to be carried on board & the aircraft which should not exceed 7 kilos. The hand bag must fit under the seat in front of the passenger or in the overhead compartment. The free carry-on items are considered as hand baggage and are subjected to the passenger’s own supervision and responsibility.

These articles must be weighed and counted towards the free baggage allowances. Passengers are allowed one piece of hand baggage with maximum dimensions of 115CM (Length + Height + Width) and not weighing more than 7 Kg in Economy Class and two pieces for First and Business Class and the weight of both pieces must not exceed 14 Kg.

Restricted Articles

It is forbidden to carry any articles that could damage the aircraft or place the passenger's lives or the aircraft in any sort of danger. For legal, safety and security reasons, the following articles must not be packed in any baggage:

compressed gases, corrosives, explosives, fireworks, flammable liquids/solids, l ighter fluid, loaded firearms, mace/tear gas, oxidizers, oxygen bottles, paints, Poisons & radioactive materials.

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Introduction of CAPA

The CAPA is the Centre for Asia Pacific Aviation which is the leading provider of independent aviation market intelligence, analysis and data services, covering worldwide developments. It was established in 1990. The aviation markets provide the great strength and passion. The CAPA provides its Members, clients and partners with an unparalleled level of expertise and insight its business. It offers an extensive range of information services developed by analysts covering the entire spectrum of commercial aviation. In addition to its regular research activities they also release annual or bi-annual reports on a number of geographies and industry issues.

Team Members of CAPA:-

Peter Harbison : Executive Chairman and Founder of CAPA –

John Ward : Managing Director & CEO of the airline.

Bob Cain : Managing Director of Tourism Futures International.

Nawal Taneja : Chairman of the Aerospace Engineering and Aviation Department

Contribution of Oman Air in Oman

Interpretation:

According to CAPA, 50.2% in Oman Aviation. The 5.2% contribution of Jet Airways and 4.8% of Air India and then Ehihad,Emirates,Qatarand Gulf Air are respectively 44.3%.The other Airlines contribution is 33% respectively.

Contribution of Oman Air in Oman Aviation:-

According to CAPA, in previous Year is the highest contribution of Oman Air is 50.2% in Oman Aviation. The 5.2% contribution of Jet Airways and 4.8% of Air India and then Ehihad,Emirates,Qatarand Gulf Air are respectively 4.7%,4.6%,4.5 and 4.3%.The other Airlines contribution is 33% respectively.

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previous Year is the highest contribution of Oman Air is 50.2% in Oman Aviation. The 5.2% contribution of Jet Airways and 4.8% of Air India

.7%,4.6%,4.5 and

Revenue Generation fr

Interpretation: The revenue is generated form passenger’s route operation by Oman Air from

different countries in 2011 & 2012as compared to 2012 is 32% from 31% respectivelyfrom domestic airlines in Omanearns at 15%, 12% and 10% respectivrevenue from Oceania is 6%

31%

6%

19%10%

15%

7%

12%

Passenger Revenue Breakdown By

Route Operation

2012

Revenue Generation fr om Different Countries in Oman

he revenue is generated form passenger’s route operation by Oman Air from in 2011 & 2012. The revenue decreased from Americas

as compared to 2012 is 32% from 31% respectively. The 7% revenue is generated from domestic airlines in Oman in both years. In 2012, The Japan, Europe, & China earns at 15%, 12% and 10% respectively. In 2012, Oman air earns th

6% & 5% in 2011.

Passenger Revenue Breakdown By

Route Operation

Americas

Oceania

India

China

Japan

Domestic

Europe

32%

5%

17%10%

16%

7%

13%

Passenger Revenue Breakdown

By Route Operation

2011

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om Different Countries in Oman

he revenue is generated form passenger’s route operation by Oman Air from from Americas in 2011

. The 7% revenue is generated The Japan, Europe, & China

, Oman air earns the minimum

Passenger Revenue Breakdown

By Route Operation

Americas

Oceania

India

China

Japan

Domestic

Europe

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About Indian Airlines

To render adequate, efficient, safe and economical air services, Indian airlines began its operation on 1st August, 1953 which was following the enactment of Air Corporations Act 1953. Today, Indian Airlines, together with its fully owned subsidiary Alliance Air which has a fleet of 70 aircrafts. Indian Airlines has been setting standards for civil aviation. With many first in its credit, Indian Airlines has been feeding both the lavish and economical requirements of passengers across the globe. Indian Airline has turned out to be synonymous with service, reliability and efficiency over the years.

Indian Airlines' network covers Singapore in the East and Kuwait in the west and connects 18 destinations in abroad. It's international network spans Oman, Kuwait, UAE, Qatar and Bahrain in West Asia; Singapore, Thailand, Malaysia and Mayanmar in South East Asia and Afghanistan, Pakistan, Nepal, Bangladesh, Sri Lanka and Maldives in the South Asia sub-continent. Indian Airlines offers services which are simply exemplary and quite unmatched. The distance from New Delhi (capital of India) to cities in Oman is displayed in kilometers, miles and nautical miles. It also displays the approximate flight duration time from New Delhi to cities in Oman. Cheap flights from Mumbai to Muscat

Mumbai to Muscat:-

Mumbai is the financial and cultural capital of India which home to everything from international banking to Bollywood moviemaking. The International flights to Mumbai land at Chhatrapati Shivaji International Airport, which is located about 23 miles from central Mumbai in the suburb of Santa Cruz. Popularly referred to as CSIA, or by its former name, Sahar Airport, this is the modern facility was named after Chhatrapatri Shivaji Bhosle, a 17th-century emperor. It is the second busiest airport in South Asia and serves over 30 airlines.

• The average flight time from Mumbai to Muscat is 2 hours & 35 minutes. • The Oman Air was the most popular airline which flying from Mumbai to

Muscat last month. • The 4 airlines fly directly from Mumbai to Muscat every day. • The distance from Mumbai to Muscat is 1,590 km. • There are 33 flights in a week from Mumbai to Muscat. • The cheapest return price was Rs 12,124 from Mumbai to Muscat last

month.

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Delhi to Muscat:-

New Delhi is the capital of India and one of the country's largest cities. The city offers something for all types of travellers, from high-end style bars to ancient mosques. The bustling Indira Gandhi International Airport serves New Delhi which is offering regular air connections from cities around the world. The airport is located about 14 miles from the centre of the city, just off Gurgaon Road. Over 40 million people travel through the airport each year.

The airport in New Delhi is one of the most well connected in India. One of the fastest and most comfortable options is the Delhi Metro which offers a fast Airport Express service to the New Delhi Railway Station

• The most popular airline flying from Delhi to Muscat was Oman Air last month.

• The average flight time from Delhi to Muscat is 3 hours & 10 minutes. • There are 21 flights in a week from Delhi to Muscat. • The 2 airlines fly direct from Delhi to Muscat. • The average distance from Delhi to Muscat is 1,959 km. • The cheapest return price from Delhi to Muscat is Rs 16,646 last month.

Ahmadabad to Muscat:-

• The average flight time from Ahmadabad to Muscat is 4 hours & 40 minutes. • The average distance from Ahmadabad to Muscat is 1,466 km. • The most popular airline flying from Ahmadabad to Muscat last month was

Emirates.

Hyderabad to Muscat:-

• The most popular airline flying from Hyderabad to Muscat last month was Oman Air.

• The 2 airlines fly direct from Hyderabad to Muscat every day. • The average flight time from Hyderabad to Muscat is 3 hours & 15 minutes. • The average distance from Hyderabad to Muscat is 2,215 km. • The cheapest return price from Hyderabad to Muscat was Rs 15,041 last

month. • There are 17 flights in a week from Hyderabad to Muscat. Cheap flights from

Delhi to Muscat.

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Flying time from India to Oman:-

The total flight duration time from India to Oman is 3 hours, 6 minutes. This assumes that an average flight speed for a commercial airline of 500 mph, which is equivalent to 805 km/h or 434 knots. It also adds an extra 30 minutes for take-off and landing process. The exact time may change depending on wind speeds.

The calculation of flight time which is based on the straight line flight distance from India to Oman is about 1,297 miles or 2,088 kilometers . The flight direction from India to Oman is West (-83 degrees from North). The flight time calculator measures the average flight duration between points. It uses the great circle formula to compute the travel mileage by Oman Air.

Major airports in India:

• Indira Gandhi International Airport, New Delhi • Chhatrapati Shivaji International Airport , Mumbai • Chennai International Airport, Chennai • Cochin International Airport, Cochin • Sardar Vallabhbhai International Airport,Ahmedabad • Pune International Airport, Pune • Jaipur international Airport, Jaipur • Banglore International Airport, Banglore

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Market Share of passenger Covered by Indian Airline in 2011.

There are many Airlines in India. Above graph shows that the Market Share of Passenger Air line in 2011.The above chart shows that the highest market share covered by Jet Airways is 46.70%.After second Position taken by Indian airlines is 30.30%. In last lowest market share is 1 % cover by Air Deccan.

Contribution of Indian Airlines in India

Interpretation: According to CAPA research in 2012, there are many Airlines in India, but the highest contribution of Kingfisher 27.6%. The domestic airlines flies and its ratio is 16.7% in India. The lowest contribution of MDLR is 0.4% and the second lowest contribution of Paramount is 2.1%.

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Performance of Indian Airlines

Interpretation: There are many different airlines in India. The performance of Indian Airlines is good in Indian economy. The Indigo, Jet Airways and Go Air airlines performs better than other airlines are. The Kingfisher Airlines performance is 81.20% in 2012. The Air India and Spice Jet are performed lesser than another Airlines 79.70 and 80.70% respectively.

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Market Share of Domestic Airlines in India

There are many domestic airlines in India which fly’s in India. The overall position of Indian domestic airlines is very good. The Indian Domestic airline considers the following 7 airlines like Air India, Indigo, Jet Airways, JetLite, Kingfisher, Go Air, and Spice Jet The market performance of each & every airlines is very good.

Interpretation:

The market share of Indian domestic airlines is as above. In the India, the maximum participation of Indigo & Jet Airways is 23.8% & 21.4% respectively. The Air India is the domestic airline and its contribution is 17.6%. There are many another airlines like as Spice Jet, Go Air, JetLite and Kingfisher. The contribution of these airlines is 17.7%, 7.3%, 6.8% and 5.4% respectively.

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Load Factor of Indian Airlines The load factors represent the maximum and minimum demand capacity of Indian airlines. The Indian people mostly use Indian airlines for travelling purpose.

Interpretation: According to factors the above chart can represent the load factors of Indian airlines. Here, maximum demand capacity of airlines is indigo which 82% is. And minimum demand capacity of airlines is air India which is 70.50% only, in 2012. There are many airlines like, jetlite, kingfisher, jet airways, and spice jet, go air etc. which can show their capacity for load factors which can average loading in 2012.

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Present Position & Trend of Business of Oman Air wi th India & Gujarat

Oman Air is only the beginning of a beautiful relationship with its customers. It believes customer satisfaction is of paramount importance, as taking care of the customers is not just good business, but an enduring commitment that they strive to maintain. Its aspiration is to become the airline of the customer’s choice.

Oman Air is committed to ensure that services provided at all levels are of high quality, taking into account “safety” as important as all other aspects. It strives to deliver a seamless travel experience and the best of customer service. However, in order to enable it’s to reach its valuable customer’s expectations. Oman air welcome the customers to please write to it and share their experience with Oman Air and what they feel that it can do further to meet their expectations and improve its present services standard.

Oman Air is the sole service provider for both International and domestic flights operating out of International and Domestic Airports in Oman since 1981. High quality service and safety standards are maintained by Oman Air. Quality management systems are based on IATA -AHM 804 standards to achieve customer satisfaction.

Passenger Services facilities are fully automated with exclusive handling for VIP’s, First and Business Class passengers by Oman Air. Oman Air plays a significant role in ensuring that it meets the expectation of its customers using both International and Domestic Airports. On an average 23,000 flights and more than 3.5 million passengers are handled per year at Muscat International Airport. Sultanate of Oman has progressed tremendously in social as well economic atmosphere. Therefore, Oman Air plays a very big role to meet the ever growing challenges.

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Check-In Process:-

Oman Air offers the passengers in two convenient ways to check-in for their flight either Online Check-in available or Early Check-in at Muscat International airport. The Details are as mentioned below:

1. Early Check-in

• Early check-in facility of up to 8 hrs is available before departure. • In cases of a family where the entire members are not physically present

during early check-in, bags can be accepted. • Passport and Visas will be checked at the initial baggage acceptance time.

2. Online Check-in

Whether the passengers are travelling for business or leisure, alone or in a group, with or without baggage, they have made it easy for them to have a hassle free airport check-in experience, at just the click of a mouse.

The Other advantages for passengers who avail this facility:

• Online check-in is available between 36 hours & 90 minutes before the scheduled time of the departure.

• Online checked-in passengers without baggage can proceed directly to immigration and gate without requiring to report at their check-in counters.

• Baggage Tags will be provided at counters 48 or 49. • Counters at the airport will close 60 minutes prior to the scheduled departure.

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Oman Air advises its customers to report to the airport at least 3 hours before scheduled time of departure. The time shown on the passenger ticket is the actual departure time of the aircraft. However, they advise them to call up their local Oman Air airport office or flight information to confirm the Oman Air flight departure time before they leave home, in case of any unexpected delays or rescheduling. Oman Air at Muscat International Airport will close check-in counters 60 minutes prior to departure effective on 01 June 2009 for all outbound flights including domestic sectors.

Destination Check in Counters

Name Code Open Close Lounge

Bangalore BLR 3 hrs 1 hr Oberoi

Calicut CCJ 3 hrs 1 hr Alhind Malabar Palace lounge

Chennai (Madras)

MAA 3 hrs 1 hr Clipper Lounge

Cochin COK 3 hrs 1 hr First Class Lounge

Delhi DEL 3 hrs 1 hr The Maurya Port Lounge

Hyderabad HYD 3 hrs 1 hr PK Hospitality

Jaipur JAI 3 hrs 1 hr Port Lounge Restaurant

Karachi KHI 3 hrs 1 hr CIP Lounge

Lucknow LKO 3 hrs 1 hr

Mumbai BOM 3 hrs 1 hr Oberoi Club Lounge

Muscat MCT Oman Air First and Business Class Lounges

Salalah SLL 3 hrs 1 hr CIP Lounge

Trivandrum TRV 3 hrs 1 hr Business Centre

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Ground Handling Services at Oman Airport for India

The ground handling service provides both cargo handling service & passengers services. It increases the year by year. In 2006, it provides the cargo handling services 3.6 (thousands) & the transportation facility for passenger is 63.9 (billions). In 2007, the cargo handling service would grow by 3.8(thousands) & the passenger services would grow by 67.9. The cargo handling service increased by 4 & 4.3(thousands) respectively in 2008 & 2009. The passenger service is also increased by 72.2 & 76.2(billions) respectively in 2008 & 2009 respectively. In 2010, it would grow by 4.5 & 81.6 respectively facilities. We can conclude that both the facilities are increase year by year.

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Opportunity in future in India (Gujarat) Certainly, there is no formula to become a successful entrepreneur. Some may succeed and make good profits. Which are the most profitable sectors for entrepreneurs? There is a list of 9 good opportunities in India for the entrepreneurs that can look as follows. Tourism Tourism is a booming industry in India, with the number of domestic and international tourist’s raise every year. This is one hot sector for entrepreneurs must focus on. India has a lot to offer to foreign tourists with its diverse culture and rich heritage. Beaches, hill stations, heritage sites, wildlife and rural life, India has everything tourists are looking for. Sometimes, this sector is not well organized by India. India lacks trained professionals in the tourism and hospitality sectors. Any business in this sector will in flourish the long run as the demand to grow every year. During January-March Foreign tourist arrivals were 15.63 lakh with a growth rate of 12.8% as compared to 13.86 lakh during the first three months last year. Automobile Now, India is a hot spot for automobiles and auto-components. A cost-effective hub for auto components sourcing for global auto makers, the automotive sector is potential sector for all entrepreneurs. The automobile industry recorded a 29 % growth in domestic sales in 2011-12. The strong sales have made by India and the second fastest growing market after China. India being one of the world's largest manufacturers of small cars with a strong engineering base and expertise. There are many segments that entrepreneurs can focus on in India's automobile and auto components sector. Textiles India is famous for its textiles sector. Each state of India has its unique style in terms of apparels. India can grow as a preferred location for manufacturing textiles taking into account with the huge demand for garments. There are many Places like Tirupur and Ludhiana which are now export hubs for textiles. In this sector, a better understanding of the markets and customers' needs can boost growth. Social ventures Many entrepreneurs are taking up social entrepreneurship in India. Helping the less privileged get into employment and make a viable business is quite a challenge. There are many people who have succeeded in setting up social ventures. With a growing young population in rural areas who have the drive and enthusiasm to work, entrepreneurs can focus on these segments in India.

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Software March 2012, India's software and services exports are likely to rise with export revenue growth projected at 13 to 15% to hit about $57 billion. With one of the largest pool of software engineers, Indian entrepreneurs can set higher targets in hardware and software development. The information technology enabled services have contributed substantially to the economy. With more companies outsourcing contracts to India, business to business solutions and services would be required. Entrepreneurs can cash in on the rise in demand for these services with innovative and cost effective solutions. Engineering goods Continuously India is one of the fastest growing exporters of engineering goods, growing at a rate of 30.1%. The government has set a target of $110 billion by 2014 for total engineering exports. Entrepreneurs must capitalize on the increasing demand for products from the engineering industry. Franchising India is well connected with the world. Hence, franchising with leading brands who wants to spread across the country which could also offer plentiful opportunities for young entrepreneurs. With many small towns developing at a fast pace in India, the franchising model is bound to succeed. Education and Training There is a good demand for education and online teaching services. At competitive rates, India can attract more students from abroad with good facilities. Unique teaching methods, educational portals and tools can be used effectively to make the sector useful and interesting. Food Processing India's mainstay is agriculture sector. An Entrepreneur can explore many options in the food grain cultivation and marketing segments. Inefficient management, lack of infrastructure, improper storage facilities leads to huge losses of food grains and fresh produce in India. The processed food market opens a great potential for entrepreneurs be it fast food, packaged food or organic food. Fresh fruits and vegetables too have a good demand abroad. A good network of food processing units can help potential exporters build a good business.

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Market Opportunities of Business in Oman Especially, Oman seeks private foreign investors in the industrial, information technology, tourism, and higher education fields. Over the next 25 years, the Oman government hopes to attract over $12 billion in new foreign investment. Investors transferring technology and management expertise, and providing employment and training for Indians, are particularly welcome. Omani laws relating to foreign investment are control in the Foreign Business Investment Law of 1974, as amended. In 1997 a Commerce Ministry spin-off, the Omani Center for Investment Promotion and Export Development (OCIPED) opened to attract foreign investors and smooth the path for business formation and private sector project development. OCIPED also provides prospective foreign investors with information on government regulations, which are not always transparent and sometimes contradictory. In spite of OCIPED's efforts to assist new business development, and the Ministry of Commerce and Industry's effort to establish a 'one-stop shop' for government clearances, the approval process for establishing a business can be too long, particularly with respect to land acquisition and labor requirements.

Factors favors in Omani trade and investment develo pment are as follows,

In October 2006 the Oman’s ratification of a Free Trade Agreement (FTA) with the United States.

Oman is member of World Trade Organization (WTO) in November 9, 2000, which facilitated Oman’s integration into the global marketplace. WTO-consider to protection of intellectual property, market access, and customs valuation are making Oman a more dependable trading partner and a more attractive destination for majority foreign-owned investment.

Greater efficiency and global competitiveness are the Oman’s long-term development strategy

Oman’s emphasis on privatization, which offers attractive opportunities for U.S. firms in the electric power, water desalination, telecommunications, and wastewater sectors;

Oman’s per capita income of roughly $19,100 (purchasing power parity) estimated for 2014. There is no personal income tax in the Sultanate;

The promising potential of Port of Salalah and Port of Sohar as international air-sea transport hubs, and prospects for the Salalah and Sohar free trade zones as magnets for value-added export industries;

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Market Entry Strategy

A company should visit Oman in order to appreciate its distinctive culture. Personal relationships are key to finding and retaining a partner. Agents are commonly used, but not always required. Agreements generally require significant lead time and follow-up before

finalization. Importers must be registered with the Ministry of Commerce and be members

of the Oman Chamber of Commerce and Industry. Importers/distributors are most commonly used in the retail food business. Food processors and the hotel/restaurant industry may import directly or

purchase goods locally from distributors.

Overview of Oman Aviation A sizeable market exists in Oman for meeting the Sultanate’s transportation needs. In addition to passenger vehicles, Oman is importing construction, airport and port equipment. Highlighting its infrastructure investment initiatives is the government’s plans to construct an additional runway and new terminal complex at Muscat International Airport by 2011 and an expanded terminal at Salalah Airport by 2010. The government also plans to construct three new regional airports. The construction of an =industrial and transshipment port in Sohar is proceeding, and the Port of Salalah is expanding. Road construction is another major focus of regional development, with multi-million dollar projects, such as the capital’s Southern Expressway, underway in various parts of Oman.

Opportunities in Airline sector in Oman The Omani government reassumed management of the Sultanate’s airports in November 2004 from a private consortium that had operated the airports since 2002. An ambitious new development plan for the airports in Muscat and Salalah should be completed by 2011 and 2010, respectively. Plans are already underway to build a new runway and terminal that has the capacity of handling twelve million passengers per year at Muscat International Airport, and a new terminal at Salalah capable of handling two million passengers per year. The government is also proceeding with plans to construct new regional airports at Sohar, Ras al-Hadd, and Duqm. The government is focused on expanding its port system. In association with the Port of Rotterdam, the government has established an industrial and container port in the city of Sohar, which is quickly becoming a major regional industrial hub . The government is moving forward with plans to construct a commercial port at Duqm, which will provide dry docking and crude shipment services. The Port of Salalah is also expanding to six berths, which, once completed, will expand its capacity to 4.38 million 20-foot equivalent units (TEUs), up from the port’s current capacity of 1.8 million TEUs.

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Conclusion

During the course of research on this project, we have come to know a lot of interesting facts and information regarding Oman air. Oman air is an undoubtedly the market leader in the airline sector .Still it dominates the world airline market share it leads the market with 50.20% stakes, beating its nearest rival Oman air which has 50.20% stake, Emirates and Ethihad are tied with 4.60% and 4.70% respectively. Oman air enjoys this status of being number one because of its qualities, features, price range. It provides the best services to its customers as compared to its competitors. However, it is facing certain challenges that have affected its present services. Moreover, there are some areas where its competitors are giving a run for their money like different services in Oman air .Through our collaborating research, we have found out some areas where Oman air should emphasis more so that it continues to be the market leader and have a border over its competitors. We have study that what are the political and legal policy of Oman and what is the economical and demographic environment dimension related with Oman. we have also found that what are the current trend in Oman. The government is focused on expanding its port system by Oman air. We have also found that Gujarat and India can also start their business unit in Oman because of there is more number of Oman air line opportunities. We have found that there are good relationship between India and Oman.

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BIBLIOGRAPHY

Websites:

� www.omnet.com

� www.WTO.com � www.infoplease.com/ipa/A0107856.html � ibde.org/component/content/article/169-country-report-oman.html � http://esa.un.org/unpd/wpp/unpp/Panel_profiles.htm � www.globaltrade.net/m/c/Oman.html � International Religious Freedom Report for 2011 � www.indianairline .com � www.businessworld.com � www.omanair.com

Books and Journals : � “Indian Finance System” by Bharti Pathak.

BTI 2012 Oman Country Report. � Tha Banking and Investment review,12 Aug.2012. � Business Standard,16 Dec.2013-Smart Investor.

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Koradiya Nitin. S : 117570592008 Kad Mahesh. R. : 117570592010 Dhandhukiya Ankit.B : 117570592012 Chauhan Nilam. : 117570592013 Chauhan Vaishali. A : 107570592017 Zala Jaypalsinh. C : 117570592014

Topic

1 Introduction of Oman telecommunication sector 96

2 Structure, function and business Activities of Telecommunications sector of Oman

112

3 Present trend and position of Telecom sector of Oman with India and Gujarat

117

4 Telecommunication policy of Oman, Taxation laws and Licensing process of the Oman, EXIM Policy of India.

123

5 Potential for import export in India and Gujarat market with Oman

135

6 Business opportunities in Oman 152

7 Conclusion 156

8 Bibliography 157

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Introduction of Oman Telecommunication sector

Vision:

� To be the most efficient and effective organization in Oman, enabling the provision of worldclass telecommunications services to all. Mission :

� Implement a fair, flexible, efficient telecommunication regulatory framework � Ensure accessibility of all kinds of services within limits to all � Balance the interests of all stakeholders, and � Align with Vision 2020

Oman Telecom Sector -Highlights

� Towards liberalization of Oman telecom sector, the regulatory authority has awarded second fixed line license to Nawras and has also appointed six mobile resellers.

� Fixed line segment in Oman has reported a CAGR of 2.4% over 2004‐08.Overall penetration levels are at 9.9% levels by end of Q4FY08.

� Growth in fixed line services remains subdued and we expect to see betterUtility as the focus has shifted from voice to data services like BroadbanServices.

� As of Dec 2008, Total mobile subscribers stood at 3.219 million,

representingPenetration levels of 113.9%.

� In mobile segment, we expect the usage to increase on the back of lowerTariffs and enhanced services which would support the lower ARPUs goingForward.

� Introduction of 3G services by Omantel and Nawras would help the customersin using high transmission speeds and also enhanced data services.

� Internet penetration in the Sultanate is very low at 3.2% (end Dec 08) asCompared to regional peers, giving enough space for growth going forward.

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Oman Telecom Sector – Moving towards liberalization

� Oman’s telecom sector has moved towards complete duopoly with Nawras (Omani Qatari Telecommunications Company SAOC) getting the fixed license during 2008. The mobile segment was opened up during March 2005 with introduction of Nawras along with the incumbent Oman Mobile (A subsidiary of Omantel ‐Oman Telecommunications Company SAOG)

� Consumers have benefited from effects of competition like lower tariffs and product innovations. While, Mobile segment continues to be the growth segment in the sector, fixed line segment provides challenges in terms of subscriber addition with key focus towards broadband (ADSL) services.

� In the mobile segment, as of December 2008, Omantel has 1.596 million customers, while Nawras has around 1.5 million customers. In the Fixed line segment, Omantel had 274K subscribers as on 31st December 2008.

� Government has ensured the liberalization of the telecom sector in line with World Trade Organization (WTO) agreement and US‐Oman FTA (Free Trade Agreement). As part of the same, the Government had earlier initiated process on part‐divestment of its stake in Omantel.

� However with worsening of economic conditions the divestment process was cancelled. Efforts of Telecom Regulatory Authority of the Sultanate are commendable which along with the service providers have been keen towards introduction of new technologies and value added services.

� We believe moving forward, Oman’s Telecom sector is bound to witness change in sect oral dynamics with introduction of Next Generation Networks and IP based networks.

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Mobile Segment – the growing Pie

� Mobile part has shown a robust growth with introduce of competition in the mobile segment (Nawras) beginning 2005. The introduction of prepaid services, expansion of network and competitive pricing has helped in the strong growth in mobile subscribers.

� The prepaid part has attracted more consumers and also has been the high growth driver, reporting CAGR of 51.1% over 2002‐08. During the synonym period, postpaid customers have reported 6.7% CAGR. Overall growth of mobile subscribers stood at 38.1% CAGR over 2002‐08 with 90% of them being registered in prepaid services.

� By the end of 2008 total mobile subscribers in the Sultanate stood at 3.22 million, representing penetration levels of 114%. We believe the actual mobile penetration to be lower due to the accounting of the dormant or inactive subscribers (25%‐27%) and dual SIM card users.

� Industry interactions indicate wide range of estimation, both in terms of inactive subscribers and dual SIM card users. However, we believe the constitution of inactive subscribers to be on the higher side, as the sector has seen a host of new developments in terms of product structuring in the recent past.

Potential growth triggers from Internet and data se rvices…

� As of Dec 2008, the total internet subscribers in Oman stood at 89,528 representing

a growth of 10.9% CAGR over 2002‐08. Overall internet penetration in the Sultanate is low at 3.2% (end Dec 08) as compared to regional peers, giving enough space for growth going forward.

� The presence of favorable demographics (young population) and increase in the penetration of personal computing in the country would lead to the strong growth in Internet and broadband services.

� This sector is expected to be the future growth driver for the country with the strong commitment from the Government/ TRA towards the development of this segment.

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Regulatory changes towards development…

� Towards regulating the competition in the Industry, TRA adopts two approaches for

regulating the tariff competition in the fixed and mobile segment.

� In fixed segment the tariff is regulated using a price cap regime (maximum price), while in the mobile segment TRA follows a more flexible approach towards reducing prices and improving service quality.

� The regulatory body has also introduced the mobile number portability which has encouraged competition in the Industry, improving quality of service and introduction of competitive tariffs. In addition to this, TRA has a set of parameters to measure the Quality of service which in turn has helped the quality of telecom services in Oman to become globally competitive.

� Towards Universal Service Obligation (USO), TRA is in the process of identifying the basic requirements in the Sultanate thereby ensuring access of communication services to all at affordable prices.

Innovative technologies to drive growth…

� The Introduction of Next Generation Network by Omantel is expected to provide the basic infrastructure in transforming into broadband information network capable of supporting next generation converged services.

� The launch of Third generation (3G) technologies by both Omantel and Nawras, would lead to the introduction of wide range innovative functions and data services.

� TRA is planning for the introduction of Wi‐Max technology which would provide high speed broadband connectivity used for services like video telephony, video conferencing, video on demand and IPTV.

� Considering the presence of high costs in international calls, TRA is in the process of making VoIP an eye‐catching alternative. TRA is planning for the development of long term view of VoIP and also increased liberalization in long distance calls.

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Sector Outlook

� Oman telecom market is entering the next phase of growth with the announcement of more liberalization measures by the Government of Oman.

� Towards liberalization, TRA has done the introduction of a new player in fixed line business, appointment of mobile resellers and plans of introduce more players in internet services.

� The liberalization of the fixed line segment in this fiscal year is expected to enhance competition thereby lowering tariff and introduction of competitive offering to the customers.

� TRA is the process of introduction of new wireless technologies in Oman telecom sector which could in turn provide high quality services to the subscribers in the country.

� Though the penetration levels have reached around 114% levels in the mobile segment, we expect the growth to continue on the back of introduction of competitive offerings and the increased usage of data services.

� The appointment of mobile resellers is expected to increase the service offering through introduction of value added and innovative service offerings.

� The internet and broadband services in Oman is expected to continue its strong growth with the major investment of Omantel coming up in the migration of the existing network to a Next

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Telecommunications in Oman

� Oman Telecommunication Company (Omantel) has a monopoly in the landline telephone and internet access markets. Its arm Oman Mobile offers mobile services. The Omani government owns 70% of Omantel after 30% was listed for the public in 2005. In 2005 Qatar Telecommunication Company (Qtel) and partners were awarded the second license to offer mobile services in the country under the brand of (Nawras).now Oman have 6 mobile networks offering internet. The networks providing 3G coverage are Oman mobile, Nawras, RennaMobile, friend and mazoon mobile.

� In 2013, Oman Brunei Investment Co (OBIC) had acquired a majority stake in mobile virtual network operator Renna mobile to help it grow.

In October 2007 the governments overhauled Omantel board of directors and announced its plan to remerge the two arm of the company and to sell part of its share to a strategic partner. The government also slashed the royalty fee paid on revenue from 12% to 7%.

Telephone

Company code : 00968

Landlines : in use: 254,051(2010 - Feb) Prepaid (36,430) - Postpaid (210,816)- Public Pay-phone (6,805)

mobile cellulers : 4,131,922 (2010 - Feb) Prepaid (3,767,218) – Postpaid (364,704)

Domestic: open wire, microwave, radiotelephone communications, limited coaxial cable and a domestic satellite system with 8 earth stations. International: satellite earth stations - 2 Intelsat (Indian Ocean) and 1 Arabsat

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Internet : Internet service providers (ISPs): 1 (2007) Country code (Top level domain):

Dial-up access :

Dial up: Postpaid (50,000) plus prepaid access cards containing a username and a password which give a set number of surfing hours.

The postpaid dialup service offered by Omantel costs 3 R.O. ($8) per month plus 0.180 R.O. ($0.47) for each hour of use.

Broadband access: - Broadband: (29,000)

ADSL services were launched in 2005 in Oman through the provider Omantel the only ISP in Oman.

EDGE and 3G:-

Both Oman mobile and Nawras offer access to the internet through their EDGE networks. Nawras launched its 3G network in selected areas in December 2007 with a download speed of 1 megabit. Oman mobile is also offering high speed 3G coverage.

Television :-

Broadcast stations: 13 (plus 25 low-power repeaters) (1999) Televisions: 1.6 million (1997)

Radio :-

Broadcast stations: AM 3, FM 9, shortwave 2 (1999) Radios: 1.4 million (1997)

In April, 2008, Nokia Siemens was appointed to replace parts of the existing radio network.

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Telecommunications Five years Plan Summary (1976-20 10)

� First Five Years Plan (1976-1980) - Communications: Approved by the Royal Decree No: 32/76 and focused mainly on the infrastructure whereas the number of the Ministries had increased and some projects were completed including the Telecommunications Building, Post Building in Ruwi, Satellite Earth Station and Post Building in Salalah….etc.

� Second Five Years Plan (1981-1985)- Telecommunications: The Post, Telegraph &Telephone Sector dissociated from the Ministry of Communications to become the Ministry of Post, Telegraph &Telephone and General Telecommunications Organization was created. The completed Projects included the Rural Communications, Mobile Telephone, Long Distance Transmission System, Local Exchanges and Networks.

� Third Five Years Plan (1946-1990)-Telecommunications: The General Telecommunication Organization expanded the scope of the Public Telephone Services within Muscat and the Provinces by installing additional 350 Public Telephones in addition to other expansions in the North and South.

� Fourth Five Years Plan (1991-1995)-Telecommunications: Expanded the services of Telephones, Telex, Telefax, Global Networks, Earth Communications Stations and Transmission of the Radio/TV Programme.

� Fifth Five Years Plan (1996-2000)- Telecommunication: The sector had a positive impact on the economical growth and productivity, this Sector was developed to render international services with the introduction of the GSM and Internet…etc.

� Sixth Five Years Plan (2001-2005) - Telecommunication within Oman (Economy) Vision2020: Sector expansion and the start of the liberalization process. The Service of the Fixed Telephone, Mobile Telephone, Internet as well as establish Double Station for (Cable Falcon) System, apply a new Numbering Plan, Completed the conversion of analogue Telephone Exchanges to Digital System, expansion in the use of Optical Fiber Cables, direct link the Sultanate with the Yemen Republic, introduce Internet/Roaming Service, Pre-paid Cards. Oman Vision 2020

As part of the Oman Vision 2020, the Sultanate vision for the transition to a knowledge based society was highlighted. In line with this vision the Sultanate has made great strides in the process of liberalizing the telecommunications Sector

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Telecom Company in Oman telecommunication sector

� Omantel � Nawras � Awaser Oman � Renna Mobile � Samatel � Majan telecom

Oman Telecommunications Company (Omantel) is the first Telecommunication

company in Oman and is the primary provider of internet services in the country.

Omantel acquired a 65% share in world call Pakistan in April 2008.[2] The government of Oman owns a 70% share in Omantel The Oman Telecommunication Company is the most reliable and unique telecom and multimedia service provider in Pakistan which is also known as Omantel. The world call telecommunication limited is also the Omantel's company OMAN TELECOMMUNIACATION COMPANY TYPE : Public INDUSTRY : Telecommunication FOUNDED : 1996 HEADQUATERS : Muscat (Oman) KEY PEOPLE : Amer Bin Awadh Al Rawas (CEO) REVENUE : $ 600 Millions NET INCOME : $ 100 Millions WEBSITES : Omantel.com

Status of Omantel:-

Oman Telecommunications Company (Omantel) is the largest communication service provider in Oman. Any telephone call you make, local or international, the SMS Messages, or internet services, Omantel is the major and larger provider.

1. Omantel

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Number of Total Employees:-

As of December 2010, around 1800 total employees work for World Call. (More than 3000 before downsizing after acquisition of World Call by Omantel, however these decisions were taken by the Omani top management)

Subsidiary of Omantel

Before the acquisition and restructuring of World Call, the World Call group was consisted of following companies:

� World call Communications Limited � World call Phone cards Limited � World call Multimedia Limited � World call Broadband Limited

Omantel decided to consolidate World Call into a single company and as a subsidiary of Omantel.

Foreign Subsidiary

World call Telecommunications Lanka (Pvt.) Limited is a foreign subsidiary of World call Telecom Ltd.

Key Players

Historically Salman Taseer remained the key player in World Call as a Leader, CEO and Chairman. After the completion of acquisitions Omantel plays important role at corporate level but World Call lacks any leadership personality like Salman Taseer.

CEO of the Company

The current players are Babar Ali Sayed (CEO) former LDI Director Operations. First time in the history of World Call the CEO is from Technical Department, unlike previous CEOs with background in Finance and Chartered Accountants. A current picture of MR. Babar Ali Sayed is below:

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Board of Directors

� Mr. Mehdi Mohammed Al Abduwani

� Mr. Talal Said Marhoon Al-Mamar

� Mr. Bernhard Heinichen

� Mr. Samy Ahmed Abdulqadir Al Ghassany

� Mr. Zafar Iqbal

� Mr. Aimen bin Ahmed Al Hosni

� Mr. Saud bin Ahmed Al-Nahari

� Mr. Shehryar Ali Taseer

� Mr. Asadullah Khawaja (nominee Arif Habib Securitie s Limited)

Vision and Mission Statements

VISION:-

We at World Call are committed to achieving dynamic growth and service excellence by being at the cutting edge of technological innovation. We strive to consistently meet and surpass customers', employees' and stake-holders' expectations by offering state-of-the-art telecom solutions with national & international footprints. We feel pride in making efforts to position World Call and Pakistan in the forefront of international arena.

MISSION:-

In the telecom market of Pakistan, World Call to have an overwhelming impact on the basis of following benchmarks:

� Create new standards of product offering in basic and value added telephony by being more cost effective, easily accessible and dependable. Thus ensuring real value for money to all segments of market.

� Be a leader within indigenous operators in terms of market share, gross revenues and ARPU within five years and maintain the same positioning thereafter.

� Achieve utmost customer satisfaction by setting up high standards of technical quality and service delivery.

� Ensuring the most profitable and sustainable patterns of ROI (Return on Investment) for the stake-holders.

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TYPE : Public INDUSTRY : Telecommunication FOUNDED : 2004 HEADQUATERS : Muscat (Oman) KEY PEOPLE : Mr. Amjad Mohamed (Chairmen) REVENUE : OMR 196.9 Millions EMPLOYEES : +1000 WEBSITE : www.nawras.om

� Nawras is an Omani communications provider owned by the Q tel Group. It is the Sultanate’s first privately owned telecommunications company, and serves two million customers as of August 2010. It offers voice and data services through a platform of technologies including 2.75G, 3G+, WiMAX and fibers. Since 2010, it has been listed at the Muscat security market, and is the fourth largest telecom company by market capitalization.

Operations

� The company provides landline voice services to business and residential customers. It also provides a range of prepaid and post-paid mobile phone plans, and broadband internet service, both home and mobile (3G+). The home broadband and voice service is powered by Wi MAX (Worldwide Interoperability for Microwave Access) technology. Nawras was first to deploy 3G+ and is the only operator to deploy Wi MAX commercially in Oman. The company also offers Wi-Fi solutions for cafés, restaurants, hotels and schools. Nawras has set up the largest public Wi Fi zone in Oman, in the Muscat Grand Mall. Since the 17 February 2013 Nawras offers LTE service.

2. NAWRAS:

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Customer Experience

� Nawras has witnessed an upward trend in its customer satisfaction surveys from 87% in 2010 to 92% in 2011. It has also launched a customer rewards programmed for its customer base.

� Benefiting from a strong financial position, Awaser Oman is well known as an expert in the Sultanate’s telecoms industry with sound relationships at government level. As the two members of the Consortium, Awaser Oman and PCCW International believe they complement one another’s capabilities and skill-sets in such a way as to form the perfect partnership to take on the task of improving everyday Omani life with leading-edge ICT solutions.

� Oman’s Telecoms Regulatory Authority (TRA) has named the PCCW-Awaser Oman Consortium as the winning bidder for a Class One license to establish fixed line public telecom services in the Sultanate. A statement issued by the TRA on 25OCT2008 said the consortium scored the highest marks in the technical and commercial evaluation, as well as putting in the best financial bid. The regulator will now forward its recommendation to the Minister of Transport and Communications once PCCW-Awaser Oman has honored all its obligations in line with the conditions of tender. It has 15 working days to do so.

3. AWASER OMAN

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� PCCW-Awaser Oman is a joint venture between Hong Kong-based multi-service operator PCCW, and a local partner. Its new license covers the provision of local and international wire line services, radio frequencies for broadband, submarine communication cables, and transmission stations.

Our Vision

� The Consortium combines local knowledge held by a visionary Omani company with the international experience of a leading telecommunications service provider. As a strong infrastructure-based candidate, the Consortium would commit to achieving significant market penetration, thereby helping to deliver the benefits of competition to Omani consumers, as well as private and public sector organizations. Our vision is to help Oman achieve national development objectives and cultivate a knowledge-based economy. This would be greatly assisted by the Consortium’s experience in telecoms infrastructure, ICT solutions, broadband, e-government and A wealth of fixed-line telecommunications and wireless broadband experience earned by PCCW in Hong Kong and the United Kingdom would be transferred to the Consortium’s Omani workforce if the license bid were successful. At less than 0.5% of the population, broadband Internet-access penetration in Oman is the lowest in the GCC. This is principally due to a lack of service availability because the market is developing slowly without the benefits of competitive stimulation.

� Renna mobile is the sultanate of Oman first mobile virtual network operator.

� It launches its services in May 2009 using Omantel superior network in Oman.

� It goal is to become most cost efficient mobile services provider in Oman with most satisfied customers and happiest employee.

� It provides some fantastic services and a brilliant customer services.

� This coupled through with superb network coverage offers through Oman tel super network across the Oman and allows enjoying services anywhere.

4. RENNA MOBILES

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� Samatel, Oman’s Mobile Virtual Network Operator in Oman has ventured into the Sultanate’s market with an objective of becoming the future leaders in the telecom industry of the Gulf. Integrity and innovation being its hallmark, Samatel aims to accomplish its vision of becoming a world class telecommunication and technology transformation services company, providing consumer and business solutions in the GCC. It will for a progressive society is what sets Samatel apart from its competitors. It is not solely for business but to serve the community by developing the Omani society where it has embarked on a promising journey. Samatel’s future endeavors include setting up

� Call centers in three different locations across the Sultanate. Being a 100% Omani owned company; it is attaining rapid Romanization thereby fulfilling HM’s vision for a productive Oman

� Samatel’s core value being commitment to customers, it aims to provide simple, enjoyable and affordable mobile telephony. On the whole, Samatel wishes to build strong bonds with the Omani community providing intelligent mobile services and working together in absolute harmony.

� Samatel encompasses cheaper rates with a wider network, a well knit and professional staff, easy accessibility to sim cards and new services through retail outlets across Oman, all of which would facilitate the customer make their best choice bringing them a ‘Life of Happiness.

� Company Samatel corporate experience will be quite unique in that the organization will have proficiency with one vision and mission; allowing all employees to contribute to the growth and constant evolvement of the customer-service experience. IT will be a key objective to foster a team spirit and create a united approach within Samatel to ensure that all hands are able to work towards the same goal of achieving customer experience excellence.

� Opportunity Samatel will be looking at key opportunities and analyzing the market and deciding success-factor is to keep acquisition and operating costs To a minimum and communicate The simplicity and fairness of the services. Samatel believes that its business model, service offerings and marketing approach will allow for significant revenue and profit generation on its consumer base, while at the same time providing a perceived value back to the end-customer.

5. SAMATEL

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� Strategy AT Samatel it’s always about its customers and their experience. Having this in mind Samatel has defined its go to market strategy and its vision, mission and objective. Samatel will apply an existing clearly defined business model to a particular business segment taking an extensive service model and customer-centric approach to new levels in a market recognized for challenged service and middle to high level of churn. By catering directly To the end-customer, using extensive loyalty/incentive programs and designing product offerings to align with The requirements of the customer, the company will market itself as the revolution of the wireless industry bringing customer service, freedom and transparency to the country's mobile market. Our goal is to increase The lifetime value of a wireless customer through combinations of chum reduction, lower customer acquisition costs, reduced operating expenses and increased wireless usage.

TASK:

� Charged only for services that you use � Lowest call rates with no hidden monthly fees. One single rate per minute rate for

all calls, with special loyalty programs such as points earning, rewards and others ensuring the continued interest and allegiance with the customer.

� Easy Sign-up / Top-up. � Provide high level of Customer Service and increase customer loyalty. � Innovative Solutions by constantly keeping in touch with market-demand and

industry advances

Country OMANOMANOMANOMAN Ownership Type

Private

City: Muscat Email: [email protected] Website www.rennamobile.cm Region: Muscat

6. MAJAN TELECOM

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Structure, Function and Business activities of telecommunication sector of Oman

CHAIRMAN OVERVIEW: There are more competitions in the mobile sector in last 56 years. The competition between Oman mobile and Nawras was conductive to a reduce the price of tone mobile and customer easy to base their choice on many aspect such as customer care, quality of services. Terrief and network coverage. Another remarkable achievement due to competition was the country’s mobile teledensity reaching up to 56.4 percent, where the number of total subscribers reached 1.333.225 in December 2011 with growth of 65 percent since the previous year. One of the major functions of the Authority is to safeguard the interests of beneficiaries of the telecommunication services in respect of the prices of the telecommunication equipment, quality and efficiency of the telecommunication Services provided by its licensees. With this objective in view, the Authority had examined different tariff proposals filed by operators and ensured fairness of the prices and facilitation of market movement towards a competitive tariff regime. TRA implemented a new 8 digits numbering scheme for both Fixed and Mobile services to cater for numbering requirements for next 20 years. During the previous year, the old 3 digits short codes were changed to 4 digits short codes. These short codes are used by telecommunication network operators to provide particular services exclusively to their subscribers and also used for public services such as emergency services etc. The Organization structure:- The TRA is body corporate established under the Telecommunication Act issued as a result of Government's initiative to liberalize the telecom sector in Oman and transform the monopolistic telecommunications market into a competitive one. Until 2002, the national telecommunications network and services in Sultanate of Oman were owned by the Government (formerly known as the General Telecommunications Organization, GTO) and the Ministry of Transport and Communications preformed the role of telecommunications policy maker, where the Minister acted as the Chairman of the Company. The Staff and Management Team:- The minister of transport and chairman of the Authority. When it’s commenced its operation in 2002. In 2000 TRA was established, there were few employees recruited, and as the responsibilities and functions of the Authority grew, the number of staff increased. By the end of 2010, there were five (5) Directorates with 17 departments in telecommunication sector and a total of 62 staff working under the organization.

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1. The Telecommunications Regulatory Authority

TRA paid a more focus on the qualification level, Professionalism, efficiency and independency of the individuals selected and the degree of proficiency and expertise of the managerial working party. The management team in TRA comprises individuals with many years of experience in the field of telecom in all its technical, economical, financial as well as legal aspect in its successive third year, TRA has accomplished a great deal in terms of regulating and monitoring the telecom sector in the Sultanate. its objectives and duties that lie in ensuring that telecommunications services are supplied in a manner consistent with national perceptions of the public interest, fostering competitive markets to promote good quality of services, new technologies, affordable prices and efficient supply of telecommunications services. The aim of the TRA at creating a favorable climate to motivate public trust in telecommunication markets by the regulatory and licensing process. The telecommunication sector objective to ensure customers satisfaction in the quality of the telecom service and the availability of services for all users.

Functions:-

� The telecommunication sector implement the approved general policy for the telecommunication in accordance to the programs prepared by the Authority for this purpose, and particularly, it is liable to objective policy implementation strategies regarding Universal Access in the Sultanate of Oman to develop telecommunication access networks to cover a wider proportion of the population and geographical areas.

� The legal affairs international representation directorate of the authority assist in this regard by identifying the policies for the telecommunication sector, proposing suggested changes on the existing policies necessary for the betterment of the telecom sector, and reports on the long term effects of alternative policies on domestic and international telecom industries and services.

� The TRA in managing the radio spectrum prepares national frequency allocation plan and determines the telecommunications systems and services that can be undertaken by radio licensee.

� It also prepares proposed amendments to radio licenses, and allocates and monitors the provisions of the use of radio spectrum in accordance with international treaties to which the Sultanate is a party.

� All telecommunications parts are administrated by TRA, who issues approvals for the use of telecommunications equipment for which no technical specifications or standards have been determined, and prepares the necessary technical specifications and standards for import and use of telecommunications equipment besides setting obligations of such equipment.

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• Liberalization of the Telecom Sector:

The goal is to introduce new sort of technologies and services in the market and provide customers with high range of choices at low prices. TRA will soon open the telecom market for Class II those who meet the qualifying criteria. TRA is also in the process of formulating regulations and procedures for issuance of Class III licenses.

• Mobile Tariffs The movement of the mobile tariffs is in continuous decrease and each operator is striving to offer attractive prices to its customers. Oman Mobile has made several changes in its tariff plans. The most significant change was the introduction of flat rates for pre-paid voice tariffs in March 2005

• Post-Paid and Pre-paid: The pre-paid service "Sahl" for fixed line has been increasing over the year, reaching 25,422 subscribers in December 2011, as compared to 10,019 in December 2010 showing an increase of 54 per cent. While post-paid still remains static increasing at a lower rate as shown in figure.3 above.

• Internet Services: There are four main types of internet service that Omantel provides; pre paid

Ufaq, dial-up subscription, ADSL, other broadband and leased line services. Omantel introduced the ADSL service in December 2010; however the service was available for residential customers in January 2011. Internet subscribers were 69,425 in December 2011 compared to 67,732 in December 2010 (3.5 Per cent increase). On average, the number of dial-up internet subscribers has been decreasing over the months, which is mainly due to prepaid Ufaq and higher demand for ADSL than dial-up service.

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• Cyber café:

Cyber Café is a popular source of internet use. Most of the people who do not have PC at home use Cyber café for internet, being cheaper and convenient. There is need to expand this facilities to other cities and rural areas too.

• Business Activities

� The authority is doing its best to ensure that interconnection between operators is based on fair judicious arrangements and the dominant operator does not take undue advantage of its market power.

� In order to achieve this objective, the Authority put a lot of stress on developing a regulatory framework, which can ensure quick and smooth interconnection agreements between the parties.

� The operator was thus mandated to produce ROI for its interconnection services. The new entrant has been given the opportunity to negotiate the terms and conditions of RIO. Although these negotiations are not yet conclusive, however, these are a step forward to achieve a balanced and fair interconnection regime in the telecom market in the Sultanate Oman.

� The consultant report is very important in issuing the determination and setting the basis for fair interconnection in the market. The Authority will then issue a determination on the issues in dispute between Nawras, Omantel and Oman Mobile.

� The service providers are operating under Interim Interconnection Agreements, awaiting the determination to be given by the Authority mainly on the level of interconnection charges for different interconnection services. In order to be fair and transparent and to use international experience for this very critical and complex issue, the Authority decided to engage an international consultancy.

• Consumer Affairs:

� The TRA to ensure access of telecommunication service to all nations at reasonable prices.

� The ideal mechanism to achieve this objective is competition. However, 100% achievement of this objective cannot be ensured and all administrations throughout the world undertake a number of policy and regulatory initiatives towards this end.

� In the Telecom Act 2002 TRA provide a statutory role to protect customer’s interest.

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� The telecommunication to achieve these goals by providing relevant information to the customer and handling problems against operators.

• International Events: Telecommunication Development Strategies and Policies. The study group will accomplish the tasks by the end of the year 2010. .

• Arab Centre of Excellence (CoE)

� The COE (Centers of Excellence)concept was established in order to develop and strengthen the capacity to create the expertise in developing countries all over the world

� The COE played a very important role in the development of attractive telecommunication market and the providing of telecommunication service for the development of society in Oman by.

1. Developing and strengthening the capability to generate advanced level policy, regulatory, managerial and requirement of technical expertise to address the needs of the telecommunication sector in Arab States Region.

2. Introducing and enhancement of application of communication and informationtechnology in education, commerce and other fields of importance in the Region.

• Competition The most important responsibility of the Telecommunication sector is foster competition all over the world. Competition is best guarantee of other key objectives such as the improvement of services and facilitation of a wider choice. Without the need for regulatory intervention to recourses are allocated appropriately and fairly. During the period under review competition was promoted in mobile sector and its fruits are reaching to the end users. TRA intend to introduce competition in fixed line as well as in value added services sectors in near future

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Present trend and position of Telecom sector of Oma n with India and Gujarat

Oman:-

Oman telecom sector was a very successful in 2011. It has been leading the cell phone market with high numbers, considering that it have been competing for seven years. Oman telecom has been increase in terms of the number of customer as well as the revenues. It has also been increase in important for fixed broadband, since it launched new broadband packages at the starting of the year. It has increased the number of customers in the broadband area. It has also been increase for fixed line telephony business which has been declining worldwide. In 2011.

In 2011 has been a challenging year at market level, but it was the winner in

market in 2011. The cast have given it an opportunity to address the issues and come up with a number of initiatives that are focusing on Human Resources related issues. so it resolved those issues, it have inmprove performance.

Omantelecom Broad band Currently have six international submarine cables landing in Oman and it was negotiating three more. So that This puts Oman on the international map in terms of becoming one of the most connected countries in the area of telecomsetor.

Omantelecom is very proud of this achievement in a year that has proven to

be very challenging for telecom companies worldwide. It have been able to build on the financing two years and take the companies to new heights, which have confirmed position as a leader in the Muscat Stock Exchange and beyond.

It has managed to improve the quality of network and offering innovative

products to customer fpr that purpose it increase investment. This created segments where the price may not matter as much, but the prediction of how much the bill matters a lot to them. So it came up with a increase number of products, including ‘stop the clock’ and unlimited calls including fixed lines and internet for a fixed amount.

Right now, it was in the process of procuring 4G. In fact there are some

misunderstandings. A lot of omane people think it is like moving to another voice device like it moved from 2G to 3G. Right now its competitor are licensed to deploy LTE (long-term evolution) but it does not have voice. It is so far a fixed broadband service only. It is working with the regulator to allow mobility and we are confident that the regulator is open-minded in this regard.

Following are the highlight of the Oman telecom sec tor.

1. Cable Broadband:-

Download speed512kbps1mbps 2mbps

From the above graph, we can say that the price of the cable broadband overall reduce by Oman telecom. Here we can shows that old price 512 is 1100 than it reduce i.e. 700. While 2mbps old price is 5100 and it reduce i.e. 1500.

2. Net profit after tax

Net (NPAT)2011 2012

From the above table we can show that’s net profit in 2011 is 4584 million than it increase in 2012 i.e. 6143 million.

3. Gross profit margin in 2011 is 16% and it reduces in 2012 i.e. 11.58%. Reason to reduce gross profit margin is more and more people use the telecom service of the Oman telecom.

0

1000

2000

3000

4000

5000

6000

512kbps

Following are the highlight of the Oman telecom sec tor.

Download speed Old price New Price 512kbps 1100 700

1400 1000 5100 1500


Net Profit After Tax (NPAT)

million

4584 6143

From the above table we can show that’s net profit in 2011 is 4584 million than it increase in 2012 i.e. 6143 million.

in 2011 is 16% and it reduces in 2012 i.e. 11.58%. Reason to reduce gross profit margin is more and more people use the telecom service of the

1mbps 2mbps

Old Price

New Price

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From the above table we can show that’s net profit in 2011 is 4584 million

in 2011 is 16% and it reduces in 2012 i.e. 11.58%. Reason to reduce gross profit margin is more and more people use the telecom service of the

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4. Sales should be increased with the rapidly increase in subscribers which results in increase in ARPU (Average Revenue per User).

5. Cut down Direct Costs as well as Operating Costs .

6. Manage Cash in that manner so Working Capital should become positive.

Indian telecom

The growth of the Indian telecom industry during the past few years has been backed by a confluence of factors i.e progressive regulatory regime, favorable demographic features and conducive business environment. The size of the telecom industry in terms of customer base has grown by more than 5 times in last five years. The customer base increased from 77.64 mn by end of FY04 to 429.72 mn by end of FY09, at an annual average growth of 41%. The monthly net additions to the customer base are an indication of the exponential growth in the telecom sector.

The rapid growth witnessed in the Indian economy in the recent past has been instrumental in catalyzing the growth of the Indian telecom industry. The customer base of the industry growth from under 20 mn in FY98 to almost 429.72 mn in FY09. This exponential growth can be attributed to the important decrease in the tariff during the last few years on account of intense competition. Infect, tariff levelsa in india are lowest in the world currentally.

Further, the rapid growth of the network capacity to the fast growing customer base has also been vital for growth of the telecom industry. On the regulatory fronts a number of initiatives such as removing the Access Deficit Charge (ADC) implementation of regulations for Mobile Number Portability (MNP) have been taken to support the growth of the Telecom industry. During FY09, In the current era of intense competition, most of the telecom operators have passed on the benefits of the removal of ADC to the customers in an attempt to increase the minutes of usage.

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The following are highlight of Indian telecom secto r.

1. Trend in Wire line Subscriber Base:

According to the above graph, we can shows that in FY 2008 there are 40.09 million subscriber in wire line, while it increase in FY 2009 is 41.43, but FY 2010 there are reduce the wire line subscriber.

2. Growth in Public Call Office:

The above graph, we can show that BSNL has 34.43% share in public call office. While 28.02 % share in public call office of Reliance. But 3.48% share in public call office of Bharti Airtel, which is very low compare to other.

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1. Trend in Wireless Subscriber Base:

From the above graph, we can say that in FY 2004 there are 33.69 million subscriber of Wireless, it increased in FY 2007 i.e. 165.11 million than after in FY 2009 391.76 million subscriber. So we can easily tell that wireless trend in India is upward position.

2. Revenue Growth in the Industry

From the above graph. We can show that in FY 2008, 432.49 Billion growth in Gross revenue of public sector and 858.34 Billion growth in Gross revenue of Private sector, while in FY 2009, 411.61 Billion growth in Gross revenue of public sector and 1111.98 Billion growth in Gross revenue of Private sector. So we can say that revenue Growth of Public sector go on decline, while revenue Growth of private sector go upward.

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3. Performance of the Internet Service

From the above graph, we can said that in 2004, there 4.55 million subscriber of the internet service, and in 2007, there are 9.27 million subscriber of the internet service and also increase in 2009 i.e. 13.54 million subscriber of the internet service. So we can say that performance of the internet service is in upward position.

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Telecommunication policy of Oman

Telecommunication act for digital Age:

There are continuously technological and legal changes in the telecommunication and related industries. It provides a important role to have an attorney who understand the law, the technology and the business model.

The goal of this law is to provide an opportunity and problems and to provide effective solutions at an affordable cost. When problems do arise, we help them in solving problems in ways that reduce the pain and distraction for them.

Telecommunications Act of 1996:

The 1st major overhaul of telecommunication law in almost 62 years is Telecommunication Act of 1996. The objective of this Act is to let anyone enter any telecommunication business- to enter any communication market against any other. The Telecommunication Act 1996 has the potential to change the way we work, live and learn. It will affect all the following area like telephone services, local and long distance cable programming and other video services, broad cast services and service provide to schools.

The Federal Communication Commission (FCC) has played an important role to in creating fair regulation for this innovative age of competition.

This page will information listing the proceedings the FCC will complete to open up local phone markets, increase competition in long distance and other steps. You will find copies of news releases summarizing action, announcements of meetings where these items will be discussed, and charts describing the work ahead of us and where (within the FCC) and when it will be completed. The presence of these links should not be taken as an endorsement by the FCC of these sites or their content. For further information about the referenced documents, contact the person listed on the documents.

Services offered:

1. Products Renewal

2. Operation Renewal

3. IT Renewal

4. Customer relationship Renewal

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Omanisation policy:

Introduction: The Omanisation programme has been in operation since 1988 in Oman, working toward replacing expatriates with trained Omani Employees. By the end of 1999, the number of Omanis in government services exceeded the set target of 72%, and in most departments reached 86% of employees. In year April 1998 a green card has been awarded to companies that meet their Omanisation target and was in accordance with the eligibility criteria for labor relations. There are mainly six areas of the private sector the ministry of Oman has also stipulated fixed Omanisation target. The Ministry has stipulated a fixed Omanisation rat io in six areas of the private sector.

1. Transport, storage and communications are to have 60% 2. Omanisation, finance; insurance and real estate 45%; 3. Industry 35%; 4. Hotels and restaurants 30%; 5. Wholesale or retail trading 20% and 6. Contracting 15%.

Omanisation policy is important for private sector firm for meeting quotation for adopting native Omani workers. Oman’s regulatory atmosphere is still in the evolution stage. Oman 8 days starting a new business compared to world average 30 days for starting a new business. Required minimum capital is over double the average level of annual income.

Country's Score over Time Country Comparisons

In 2011 there is inspired by the “Arab spring” demanded more political rights, economic benefits and action against corruption. Sultan Qabus bin said promising political and economic reform and more government jobs. The consulting council

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was built in October 2011. Oman is small oil exporter. The Oman government is trying to develop more exports of natural gas, gas based industries, increase foreign investment in petrochemicals, electric power and telecommunications.

Oman connects with world Trade Organization in 2000 and signed a free trade agreement with the U.S. in 2006.

Regional Ranking: 2011 RANK COUNTRY OVERALL CHANGE

1 Britain 75.5 0.3

2 Qatar 71.3 0.0

3 U.A.EU.A.EU.A.EU.A.E 71.1 1.8

4 Jordon 70.4 0.5

5 Oman 68.1 0.2

6 Israel 66.9 -0.9

7 Kuwait 63.1 0.6

8 Saudi Arabia 60.6 -1.9

9 Morocco 59.6 -0.6

10 Lebanon 59.5 -0.6

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EXIM Policy of India

Telecommunication rules of India

India has lots of opportunity emerging from consequently lowering of barriers. India has brand equity in the global market in information technology. The soft ware company of the India providing a efficient solution to the customer at an affordable cost. The government of India providing many supports to the telecommunication sector of the India.

The government of the India continuously effort to telecommunication sector in a front runner in the age of the information revolution. In the age of Information Revolution the government has been making continuous efforts to make India a front runner. India today has the advantages of skilled manpower base, active and healthy competition amongst states in attracting investment in infrastructure as well as framing IT applications in areas such as e-governance, e-learning, e-commerce, entrepreneurship, software exports growth and a large potential in the domestic market. Information Technology Act dealing with Cyber Security.

India has the potential to expand and manufacture Electronics, IT, Hardware and telecommunication for the global market and obtain higher global share besides countries future requirements in the converging areas of telecommunication, entertainment and information. The Indian government set up NMCC (National Manufacturing Competitiveness Council) to provide a continuing forum for policy dialogue to emerging and sustain the growth of the IT and telecommunication.

Through the acquisitions and mergers as a result of technological convergence, at the infrastructure, services and industry level there has been a tremendous up surge in new products. Consequent shift has been from monopoly of Government as service provider to private entry in telecom to promote competition and establishing a neutral regulatory agency. The essence of the convergence spirit and the vitality of changes have led to lowering of tariffs, plentiful availability of bandwidth at increasingly lower cost, competition and growth in technology, especially fiber optics and wireless technology. Internet is clearly surging ahead laying another milestone that promises to rewrite global and national economies. India has been successfully promoting reforms in all the constituents of the Internet, Communication and Entertainment sector. The goal of the Indian government to increase the living slandered of the people and entrench their lives. End of the department of Information Technology has taken up an ambitious programme of PC and internet penetration to the rural and underserved urban areas.

The industrial policy reform has reduced the industrial licensing requirements, free from regulation on investment and expansion and facilitated easy access to foreign technology and foreign direct investment. The liberal trade policy is the main feature of the India’s economic reforms. In 1st march 2003 India is signatory to the Information Technology Agreement of the World Trade. The custom duty on 217 items is eliminated. Over the years foreign trade policy for telecommunication and IT products has been liberalized.

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Indian government provides the special economic zone (SEZ) for Electronics Hardware Technology Park. Schemes have been tailored to boost manufacturing in the county.

Vision, Objectives and Strategy for Supporting Elec tronics/ telecommunication

The government of India providing a important role in setting favorable macro policies and support strategies suiting specific sector that help business realize full potential in creating wealth. The WTO stipulation for elimination duties on telecommunication segment at an international level.

• Vision: To make India one of the key players in the global electronics and telecommunication sector and integrate with the global value chain.

• Objectives:

Growth of the telecommunication industry in India has not been consistent with her market potential.

• Supporting the Domestic demand • Making Indian telecommunication Sector globally competitive • Facilitating the industry for addressing world market • Facilitate formation of catalysts for growth of the industry • Positioning India in the global value-added-chain • Reducing dependence on imports • Help businesses realize full potential in creating wealth of the nation.

Indian telecommunication sector: The telecommunication sector of the India is one of the fastest developing sectors in the country and it is a second biggest international telecom market in next few years. As per the report of the TRAI the total number of telephone users in India about crossed 806.13million in January 2012. As per compared to 787.28million in the year2011. The wireless telecommunication subscribers touched 771.18n million in January 2012 it is more than the year2011.

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Corporate Taxation law of Oman

� Income Tax Liability:

In Oman commercial companies are liable to tax. Oman government doesn’t take personal income tax, fringe benefit tax, gift tax, wealth tax or any form of estate. There is no any sales tax or value added tax in Oman.

� Taxable Entities :

In Oman company means any person established in Oman as a company under the Oman’s legislation, it is commercial, civil and whatsoever be the legal form of the company, the nationality of its partners, the purpose of its incorporation or the nature of its work.

The entities are liable for taxation in Oman is as under:

1. General and Limited Partnerships 2. Limited Liability Companies 3. Joint stock company. 4. Holding companies

A permanent establishment shall also mean any foreign person that provides consultancy service or any other services in Oman for a period or periods of not less than ninety days in the aggregate in any twelve months whether directly or through employees of that person, or others designated by that person to perform such services. Permanent establishment includes especially: 1. A Place of sale, place of management, branch, office, factory or workshop. 2. A mine, quarry or other place of extraction of natural resources. 3. A building site, a place of construction or an assembly project.

� Categories of tax exempt income: The Oman Tax Law provides that the following two "Categories of Income" would be fully exempt from taxation in Oman for all tax years.

1. Dividends received by the tax payer from the shareholding it owns in the capital of any Omani company.

2. Profits or gains from disposal of securities listed in the Muscat Securities Market (MSM)

� Categories of tax exempt activities: 1. Shipping income:

The Oman Tax Law states that income accruing to an Omani company/establishment from carrying on its activity in the field of shipping shall be exempt from tax. Further, the income from the shipping / air transport activities

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accruing to a foreign company in Oman shall be exempt from tax, provided similar treatment is accorded on reciprocal basis in the foreign country in which the foreign company is incorporated or where its effective management and controls are exercised.

2. Investment Funds: As per the Oman Tax Law, income accruing to investment fund set up in Oman under Capital Market Law or to investment fund set up outside Oman to deal in Omani securities listed in Muscat Securities Market (MSM) shall be exempt from tax.

3. Priority sector activities:

• Industry in accordance with the Law for Unified Ind ustrial Organization of Gulf

• Cooperation Council Countries. • Mining in accordance with the Law of Mining. • The export of locally manufactured or processed pro ducts.

• The operation of hotels and tourist villages. • Farming and processing of farm products, including animals and

the processing or manufacturing of animal products and the agricultural industries.

• Fishing and fish processing, farming and breeding. • University education, college or higher institutes, private schools,

nurseries or training colleges and institutes. • Medical care by establishing private hospitals.

The exemption provided under this Article shall be for a period of 5 years beginning from the date of production or of the business, as applicable. Such tax exemption may be renewed for a further period not exceeding 5 years provided various criteria’s on exports, dividends, Omanisation, fixed assets investment. Dividends The Oman Tax Law suggests that tax would not be imposed on dividends received by a company through shares in the capital of the other Omani companies i.e. companies registered in Oman. Dividends received from foreign companies will be tax liable at the tax rate applicable to business income. Related Party Transactions Related party transactions are closely examined by the Oman Tax Department and they would normally require documents to ensure that it is at an arm’s length price and is reasonable considering the value of services received. As per the new Income Tax Law, the executive regulations governing the transfer pricing rules in Oman would be issued in due course of time. Avoidance of Double Taxation Under the new Income Tax Law, companies which are liable to pay income tax on their overseas income will be entitled to corresponding tax credit to the extent of Omani tax on foreign income or the foreign tax paid whichever is less, in those cases where there is no Avoidance of Double Tax Treaty between Government of Sultanate of Oman and Government of that foreign country. Tax credit should be claimed within 2 years from the ending date of the tax year in which the payment of

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income tax overseas has been made. List of countries with whom Oman has entered into Avoidance of Double Tax Treaties (ADTT):- Oman has double tax avoidance treaties with following countries: 1. France 15. Canada 2. United Kingdom 16. Turkey 3. India 17. Syria 4. Pakistan 18. Republic of South Korea 5. Mauritius 19. Singapore 6. Tunisia 20. Belgium 7. Italy 21. Netherlands 8. Algeria 22. Thailand 9. Lebanon 23. Maldova 10. China 24. Vietnam 11. Yemen 25. Sudan 12. South Africa 26. Yemen 13. Seychells 27. Tunisia 14. Iran Custom Duties Custom duty is levied at 5% on most of the items like rice, milk, sugar, ghee, tea; etc are exempt from the custom duty. Very High custom duty is to be paid on the following items like, liquor, cigarette, tobacco, pork, etc, Other Taxes Other taxes are as below:

� Tax on annual rental of leased premises � Tax on electricity bills � General sewerage charge in water � General sewerage charge in water � Tax on hotel bills. � Leisure and cinema tax. � Tourism levy. � Properties tax on purchase/sale, mortgage, registra tion, renewal etc.

Pricing: The pricing includes raw materials, labor, distribution, promotion and advertising, taxes and customs. Most restaurants in Oman charge municipality and tourism taxes in their invoices. Telecommunication infrastructure and service in Oman remainsin its gulf areas. Fixed line and Internet penetration rates are low, yet the young and growing population is generating increased demand for modern telecommunications and broadcasting systems. In July 2005, the government, which was its telecom sector, floated 30 percent of its shares in state telecoms giant Omantel (formerly known as the General Telecommunications Organization, or GTO). The company is now looking for a strategic investor in aopen the fixed-line communications sector through the issuance of additional licenses Oman’s telecommunications sector is slowly opening up to competition. In 2004, the Sultanate announced that Nawras Telecom (a consortium oTel, Denmark’s TDC, and local investors) had won the second GSM license to provide cellular service in Oman. Nawras’ subsequent introduction of service marked the first crack in the state telecoms monopoly.

The pricing includes raw materials, labor, distribution, promotion and advertising, taxes and customs. Most restaurants in Oman charge municipality and tourism taxes

Telecommunication infrastructure and service in Oman remains less developed than in its gulf areas. Fixed line and Internet penetration rates are low, yet the young and growing population is generating increased demand for modern telecommunications

In July 2005, the government, which was required per WTO commitment to liberalize its telecom sector, floated 30 percent of its shares in state telecoms giant Omantel (formerly known as the General Telecommunications Organization, or GTO). The company is now looking for a strategic investor in advance of government efforts to

line communications sector through the issuance of additional licenses Oman’s telecommunications sector is slowly opening up to competition. In 2004, the Sultanate announced that Nawras Telecom (a consortium oTel, Denmark’s TDC, and local investors) had won the second GSM license to provide cellular service in Oman. Nawras’ subsequent introduction of service marked the first crack in the state telecoms monopoly.

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The pricing includes raw materials, labor, distribution, promotion and advertising, taxes and customs. Most restaurants in Oman charge municipality and tourism taxes

less developed than in its gulf areas. Fixed line and Internet penetration rates are low, yet the young and growing population is generating increased demand for modern telecommunications

required per WTO commitment to liberalize its telecom sector, floated 30 percent of its shares in state telecoms giant Omantel (formerly known as the General Telecommunications Organization, or GTO). The

dvance of government efforts to line communications sector through the issuance of additional

licenses Oman’s telecommunications sector is slowly opening up to competition. In 2004, the Sultanate announced that Nawras Telecom (a consortium of Qatar’s Q-Tel, Denmark’s TDC, and local investors) had won the second GSM license to provide cellular service in Oman. Nawras’ subsequent introduction of service marked

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Best Products/Services

A. Telephone B. Cellular (GSM) equipment, C. Network solutions D. Software E. Fiber optic cabling, F. Wireless networking.

Opportunities Oman plans to make telephone service available in all but the smallest villages, although the capital expenditure is prohibitively expensive in a large, topographically challenging country like Oman. American companies have had limited success in these areas. � Omantel has contracted with Ericsson, Siemens and M otorola to expand

GSM service to outlying areas.

� Mobile subscribers of Oman: (year 2005 to 2012)

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1 2 3 4 5 6 7 8

Total subscribers

year

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� Market share of telecommunication industry of Oman in

2011:

Import Tariffs: Omani implemented the GCC Unified customs law (UCL) on 1st January 2003. The UCL imposes a five percent ad valorem duty on practically all products imported from non-GCC countries, including automobiles. Live animals, fresh fruits and vegetables, seafood, grains, flours, tea, sugar, Spices and seeds for planting are exempted from customs duty. Trade Barriers: Some classes of goods require a special license (e.g., alcohol, firearms, and pharmaceuticals), while other goods are exempted from customs duty. Examples of the latter includes currency, agricultural implements and material, books, and basic food commodities, such as rice and meat. Import Requirements and Documentation: With the exception of food products, if the importing company has an existing agency agreement with a U.S. exporter an authentication procedure is not required. In 1996, Oman began the process of simplifying customs clearance documentation to expedite the flow of goods and services. Temporary Entry: Oman are no general provisions for the temporary entry of goods. In the case of auto re-exports, if the vehicles are re-exported within six months a company or individual may have the duties refunded. Labeling and Marking Requirements: Labeling: Common GCC labeling standards of imported goods is a key issue facing U.S. exporters. Food labels must include product and brand names, production and expiry dates, country of origin, name and address of the manufacturer, net weight in metric units, and a list of ingredients in descending order of importance. All fats and oils (including gelatins) used as ingredients must be specifically identified on the

30

2515

13

10

7

% share

omanTel

Nawras

Awser Oman

Renna Mobile

Samatel

Majan telecom

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label. Labels must be in Arabic only or Arabic/English. Arabic stickers are accepted. Trade Agreements: United States began free trade Agreement negotiation with Oman in March 2005.On January 19, 2006, U.S. Trade Representative Rob Portman and Omani Minister of Commerce and Industry Maqbool bin Ali Sultan signed the FTA. Import controls Oman’s dominant fixed-line carrier, Omantel, operates a relatively modern and efficient telephone system. Virtually all businesses have fax machines. Mobile (GSM) phones are widely used; roaming arrangements already cover the GCC, the U.S., the UK, and European countries. In addition, a second mobile phone operator, Nawras Telecom, came on-line in 2005 to compete with Oman Mobile for subscribers. Omantel and Nawras provide Internet services. International telephone access cards cannot be used in Oman, nor can collect calls be made or received. International rates are very high— upwards of $1.30 per minute to Europe and the Western Hemisphere during peak hours. VOIP service providers are blocked from the Omani market, though internet-based programs may work on occasion.

Issuance of Telecom Licenses Oma n:

� The licensing process is generally regarded as one of the most important regulatory processes undertaken by the authority.

� The TRA is responsible for the preparation of licenses, and

qualification Criteria, analysis of the requests for licenses and to monitor the obligations of the Service providers.

� In order to form a liberal telecommunications sector, TRA

intends to open competition for other telecom services gradually. Currently there is one Basic Public Fixed Telecommunications operator and two Basic Public Mobile Telecommunications operators in the market.

� TRA is considering introducing competition in the Basic Public

Fixed Telecommunications Services for local access, long distance and international carriage.

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Potential for import export in India and Gujarat ma rket with

Oman 19869@Indian Exports: A History: Indian exports history is very old. During ancient times spices to the other parts of the world were being exported by India. It was also famous for its textiles in the 16th century. Textiles and cotton were being exported to the Arab countries from Gujarat. During the Mughal era, India exported various precious stones such as ivory, pearls, tortoise stones etc. But during the British era, Indian exports reduced as the East India Company took control of foreign trade. Markets: Though India has seen some product diversification in its export basket, it has not expanded vastly in the two big markets-Africa and Latin America. India’s business with South Asian countries is also very less. This region has not been integrated with the global economy, though political and economic initiatives have been taken in the past. Leading Export Items of India: In the past ten years, Indian exports have grown at a rate of nearly 22%. Some commodities have enjoyed faster export growth than others. Some of India's main export items are cotton, textiles, jute goods, tea, coffee, cocoa products, rice, wheat, pickles, juices, jams, preserved vegetables, mango pulp etc. Restriction on the Exports of Items: There are some restrictions on the export of goods. Under sub section (d) of section 111 and sub section (d) of section 113, any good exported or attempted to be exported, contrary to any prevention compulsory by or under the customs act or any other law is liable for elimination. Export Trends: If the Indian economy grows at the same speed, India would most definitely export goods worth US $500 billion by 2013 and may succeed the exports of other large developing countries like Brazil. The Way Ahead India needs the right mix of policy formulation sector focus and industry led initiatives to shift the value chain in the global export basket The Opportunity : It is very clear that Indian exports have still not achieved their true potential and there exists vast opportunities for expanding the basket of India’s

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exports. With a strategic attention on the new markets that are evolving due to free trade, India is witnessing a explosion in both manufacturing and services. Problems of the Indian Export Sector: There are the minority problems which need to be solved before India makes a mark for itself in the export sector. The Indian goods have to be of higher quality. The packaging and branding should be such that countries are interested to export from India. At the same time India must look for potential market to sell their goods. The government should frame policies which gives enhance to the exports. Directional Change in Exports: India has seen enormous directional change in the context of origin of demand for Indian products. Till 2001-02 North America and the EU markets shared nearly 21% and 23.2 % respectively of total exports and the remaining to the rest of the globe. By 2006-07, North America had a share of only 16% of the total exports and the EU's share was 21.2%.

The telecom industry has been divided into two chief segments, that is, fixed and wireless cellular services for this report. Besides, internet services, VAS, PMRTS and VSAT also have been discussed in brief in the report.

In today’s information age, the telecommunication industry has a vital role to play. Considered as the backbone of industrial and economic development, the industry has been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been revolutionizing human communication.

Even though the Indian telecom industry is one of the fastest-growing industries in the world, the current teledensity or telecom penetration is very low when compared with global principles. India’s teledensity of 36.98% in FY09 is amongst the lowest in the world. Additional, the urban teledensity is over 80%, while rural tele density is less than 20%, and this gap is rising. As majority of the population resides in rural areas, it is important that the government takes steps to improve rural teledensity. No doubt the government has taken certain policy initiatives, which include the creation of the Universal Service Obligation Fund, for improving rural telephony. These measures are predictable to improve the rural teledensity and bridge the rural-urban gap in teledensity.

Introduction – Evolution in telecommunication secto r:

Indian telecom sector is more than 165 years old. Telecommunications was first introduced in India in 1851 when the first operational land lines were laid by the government near Kolkata (then Calcutta), although telephone services were formally introduced in India much later in 1881. Further, in 1883, telephone services were combined with the postal system. In 1947, after India attained independence, all foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a body that was governed by the Ministry of Communication. The Indian telecom sector was wholly under government ownership

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until 1984, when the private sector was permitted in telecommunication equipment manufacturing only. The government concretized its earlier efforts towards developing R&D in the sector by setting up an autonomous body – Centre for Development of Telematics (C-DOT) in 1984 to develop state-of-the-art telecommunication technology to meet the increasing needs of the Indian telecommunication network. The actual development of the industry started after the Government divided the Department of Post and Telegraph in 1985 by setting up the Department of Posts and the Department of Telecommunications (DoT).

The whole evolution of the telecom industry can be classified into three different phases.

• Phase I- Pre-Liberalization Era (1980-89) • Phase II- Post Liberalization Era (1990-99) • Phase III- Post 2000

Until the late 90s the Government of India held a monopoly on all types of communications – as a result of the Telegraph Act of 1885. As mentioned past in the chapter, until the industry was liberalized in the before time nineties, it was a heavily government-controlled and small-sized market; Government policies have played a key role in determining the structure and size of the Telecom industry in India. As a result, the Indian telecom market is one of the most liberalized markets in the world with private participation in almost its entire segment. The New Telecom Policy (NTP-99) provided the much needed force to the increase of this industry and set the trend for Liberalization in the industry.

Current Status:

Globalization has made telecommunication a vital part of the infrastructure of the Indian economy. The telecom sector in India has developed as a result of progressive regulatory regime.

According to the TRAI, the total gross revenue of the Indian telecom services industry was Rs 1,524 BN in FY09 up from Rs 1,291 BN in FY08 registering a growth of 18.03% over FY08 and its subscriber base grew by 43% over FY08 to touch 429.70 MN subscribers in The telecom sector in India experienced a rapid growth over the past decade on account of regulatory Liberalization, structural reforms and competition, making telecom one of the major catalysts in India’s growth story. However, much of this growth can be credited to the unprecedented growth in mobile telephony as the number of mobile subscribers grew at an astounding rate from 10 million in 2002 to 392 million in 2009. Besides, the growth in the service and IT and ITeS sector also better the importance of the telecom industry in India. Telecom has emerged as a key infrastructure for economic and consumer growth because of its multiplier result and the fact that it is beneficial to trade in other industries. The contribution of the sector to GDP has been increasing gradually (its contribution in GDP has more than doubled to 2.83% in FY07 from 1.0% in FY92).

Telecom is one of the fastest-growing industries in India; on an average the industry added 8 million wireless subscribers every month in FY08. The government had set a intention of 500 million telecom connections by 2010. However, according to the

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TRAI, the total subscriber base (wireless and wire line) in the industry crossed the 500-mn-mark and reached 509.03 mn by the end of September 2009, which took India to the second position in terms of wireless network in the world next only to China. Prior to liberalization, the telecom sector was monopolized by the public sector and recorded marginal growth; in fact, during 1948-1998, the incremental teledensity in the country was just 1.92%. However, the introduction of NTP’99 accelerated the growth of the sector and the teledensity increased from 2.33 in 1999 to 36.98 in 2009; however, much of this growth was brought about by the NTP-99 policy changes such as migration from fixed license fee to revenue sharing regime and cost-oriented telecom tariffs. From 2003 onwards the government has taken certain initiatives such as unified access licensing regime, reduced access deficit, introduction of calling party pays (CPP) and revenue sharing regime in ADC that has provided further impetus to the sector.

The Indian telecom industry is characterized with intense competition, and continuous price wars. Currently, there are around a dozen telecom service providers who operate in the wired and wireless segment. The government has been periodically implementing suitable fiscal and promotional policies to boost domestic demand and to create volumes for the industry.

The Indian telecom industry has huge growth potential as the teledensity in the country is just 36 as compared with 60 in the US, 102 in the UK and 58 in Canada. The wireless part growth has played a dominant role in taking the teledensity to the current levels. In the next a small number of years, the industry is balanced to raise further; in fact, it has previously entered a consolidation phase as foreign players are under pressure to acquire a pie in this dynamic industry.

Role in India’s Development:-

Contribution to GDP

According to the UNCTAD, there is a direct association between the growth in mobile teledensity and the growth in GDP per capita in developing countries, which tend to have a high percentage of rural population. The share of the telecom services industry in the total GDP has been growing over the past few years (the telecom sector contribution in GDP went up from 2.52% in FY05 to 2.83% in FY07).

Employment:

The Indian telecommunication industry employs over 400,000 direct human resources and about 85% of these human resources are from government-owned companies. The ratio of number of subscribers to human resources, an indication of good organization and profitability, is much top for private companies than for government companies.

Foreign Direct Investment (FDI):

Foreign direct investment has been one of the main contributors in the growth of the Indian economy, and therefore, the need for higher FDI is felt across sectors in the Indian economy. The telecom sector has played a crucial role in attracting FDI in

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India. The share of telecom sector in the total FDI inflows in India has gone up to 10% in FY09 as compared with just 3% in FY05.

The telecom sector requires vast investments for its development as it is capital-intensive and FDI plays a vital role in meeting the fund requirements for expansion of the telecom sector. Telecom accounts for almost 10% of the total FDI inflows in the country and has been the third-largest sector to attract FDI in India in the post-liberalization era

The Indian telecom industry has been a nice-looking avenue for foreign investors over the years. As per DIPP figures, the growing FDI inflow during August 1991 to June 2009 period, in the telecommunication sector amounted to US$ 113 bn. FDI calculation takes into account radio paging, cellular mobile and basic telephone services in the telecommunication sector.

In the 2004-05 Budget, the governments raise the FDI limit from 49% to 74% in the telecom services segment subject to retention of local management control. According to the new norms, 26% share out of the 74% should be held by an Indian company or an Indian citizen with Indian management. Further, 100% FDI is permitted in telecom manufacturing, category I infrastructure providers, ISPs without gateway, call centers and IT-enabled services. Further, direct or indirect FDI up to 74% is allowable subject to licensing and security necessities for ISPs with gateways, radio paging operators and category II infrastructure providers.

The vary in FDI policy that has raised the FDI limit from 49% to 74% for the sector has made it more good-looking for foreign players. In the long run the growth prospects of telecom players that have foreign partners will advance and other players will get new avenues to move up capital.

Growth of IT- ITeS and Financial Sector:

India has entered the league of countries with the most-advanced telecommunication infrastructure after the industry was deregulated. Furthermore, deregulation has stimulated India’s economic growth through industry growth and through rise in investments. It is evident that a well-developed communication sector improves access to social networks, lowers transaction costs, increases economic opportunities, widens markets, and provides better access to information, healthcare and educational services. The growth in Indian telecom sector has been concomitant with overall growth in GDP, government revenue, employment et al. Besides, telecommunication has increased efficiency, reduced transaction costs, attracted investments and has created new opportunities for business and employment.

The telecom sector has been active in creating jobs for a vast pool of talented and knowledge professionals in the IT and ITeS-BPO industry, which thrives on reliable telecommunication infrastructure. India has become an important outsourcing purpose for the world and the boom in this sector also has transformed India’s economic dynamics. The evolution of telecom sector has brought about a revolutionary change in the way some businesses operate.

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Both the financial and the IT-ITeS segments rely on good domestic as well as international network connectivity; therefore, there is a need for a sound telecommunication network.

Factors Facilitating Growth of the Sector:

The extraordinary growth in the Indian telecom industry was brought about by the wireless revolution that began in the nineties. Besides this, the following factors also aided the growth of the industry.

Liberalization:

The relaxation of telecom policy has played a major role in the development of the Indian telecom industry. The liberalization policies of 1991 and the consequential influx of private players have led the industry on a high development trajectory and have enhanced the level of competition. Post-liberalization, the telecom industry has received more investments and has implemented higher technology.

Increasing Affordability of Handsets:

The phenomenal growth in the Indian telecom industry was predominantly aided by the meteoric rise in wireless subscribers, which encouraged mobile handset manufacturers to enter the market and to cater to the growing demand. Further, the manufacturers introduced lower-priced handsets with add-on facilities to cater to the increasing number of subscribers from different group of the society. At the present even entry-level handsets come with features like colored display and FM radio. Thus, the falling handset prices and the add-on features have triggered expansion of the Indian telecom industry.

Prepaid Cards Bring in More Subscribers:

In the late nineties, India was introduced to prepaid cards, which was yet another milestone for the wireless sector. Prepaid cards lured more subscribers into the industry besides lowering the credit risk of service providers due to its upfront payment concept. Prepaid cards were quite a phenomenon among first-time users who wanted to control their bills and students who had limited resources but greater need to be connected. Pre-paid cards greatly helped the cellular market to grow rapidly and cater to the untapped market. Further, the introduction of innovative schemes like recharge coupons of smaller denominations and life time incoming free cards has led to an exponential growth in the subscriber base.

Introduction of Calling Party Pays (CPP):

The CPP regime was introduced in India in 2003 and under this regime, the calling party who initiated the call was to bear the entire cost of the call. This regime came to be applicable for mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from both mobile as well as fixed line networks. Shifting to the CPP system has greatly fuelled the subscriber growth in the sector.

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Changing Demographic Profile:

The changing demographic profile of India has also played an important role in subscriber growth. The changed profile is characterized by a large young population, a burgeoning middle class with growing disposable income, urbanization, increasing literacy levels and higher adaptability to technology. These new features have multiplied the need to be connected always and to own a wireless phone and therefore, in present times mobiles are perceived as a utility rather than a luxury.

Increased Competition & Declining Tariffs:

Liberalization of the telecom industry has fuelled intense competition, especially in the cellular segment. The ever-increasing competition has led to high growth of subscribers and has put pressure on tariffs, which have seen a sharp drop over the years. When the cellular phones were introduced, call rates were at a peak of Rs 16 per minute and there were charges for incoming calls too. Today, however, incoming calls are no longer charged and outgoing calls are charged at less than a rupee per minute. Thus, the tariff war has come a long way indeed. Increased competition and the subsequent tariff war have acted as a major catalyst for attracting more subscribers. Apart from these major growth drivers, an improved network coverage, entry of CDMA players, growth of value-added services (VAS), advancement in technology, and growing data services have also driven the growth of the industry.

Telecom sector in India Presentation Transcript:

• TELECOM INDUSTRY IN INDIA • Pre liberalization

o Historically telecom network in India was owned and managed by Government as it is considered as a strategic service. At that time the Telecom industry was monopoly in nature.

• Current Scenario in Telecom Industry o India is 4th largest market in Asia after China, Japan and South Korea. o India is the 5th largest in the world and 2nd largest among emerging

economies of Asia. o Contribution of telecom sector in terms of revenue is 21 % of GDP as

compared to 2.8% in developed economies. o Lowest tariff charges in the world.

• REFORMS IN TELECOM SECTOR o Reforms in telecom sector began in 1980 with telecom manufacturing

being opened for private sector followed by national telecom policy (NTP) in 1994 and 1999.

o In 1990 telecom revolution in many countries which resulted in better quality of service with lower tariff rates force Indian policy makers to open up telecom sector for private players.

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• POLICY REFORM PHASE 1 PHASE 2 PHASE 3 • Phase-1

o The decade of 1980's saw private sector being allowed in telecommunications equipment manufacturing.⇐

o Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited (VSNL) were formed.

o A telecom commission was set up to give focus to telecommunications policy formation.

• Phase-2 o In 1990s, telecommunications sector also benefited from the general

opening up of the economy. o NTP 1994 was the first attempt to give a comprehensive roadmap for

the Indian telecommunications sector. � Availability of telephones on demand (targeted by 1997) � Universal service covering all villages and one pco per

500 persons in urban areas at the earliest (targeted to be achieved by 1997)

� Telecom services at affordable and reasonable prices • Phase- 3

o NTP 1999 brought in the third generations of reforms in the Indian Telecommunications sector.

o FDI increase from 49% to 74%. o Internet telephony in 2002. o Launch of CDMA technology. o 3-6 operators in each circle. o Intra circle merger guidelines. o Broadband policy 2004.

• Declining Tariff – Rising Revenue • MAJOR PLAYERS IN TELECOM SECTOR- 2010 Service provider No of

subscribers CDMA No of subscribers GSM Reliance 1.5CR 11.35CR Tata 2.35CR 7.25CR Airtel 14.45CR MTNL 24.98LAC Bsnl 7.98CR Vodafone 10.35CR Idea 6.58CR Aircel 2.35CR

• MARKET SHARE MAJOR PLAYERS IN TELECOM SECTOR • Net Sales(�Cr)- 2010

o TRAI is the regulatory authority for telecom sector in India. o The Telecom Regulatory Authority of India was established on 20

February 1997 by an act of parliament called " Telecom Regulatory Authority of India Act 1997"

o The mission of TRAI is to create and nurture an environment which wills the enable quick growth of the telecommunication sector in the country.

o Airtel was established in 1985, Bharti (Airtel) has been a pioneering force in the Telecom Sector.)

o Bharti Airtel is one of India's leading private sector providers of telecommunications services)

o An aggregate of 15,00,00,000 customers in that 13,00,00,000 are under GSM (Global System for)

o Mobile Communications) mobile and 1,656,031) o Broadband & telephone Customers. o Bharti Airtel is planning to invest about $14 billion by the year 2013.)

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o Wireless Services � 2G/3G � Rural Market � Tele media Services � Fixed Line � Broadband � DTH � Enterprise Services � Carrier � Corporate � Passive Infrastructure � Bharti Infratel � Indus Tower

Different services available at Airtel

• Chairman and Managing Director of Bharti Airtel, Sunil Bharti Mittal. • Industry Analysis • Challenges

o India centric – Major revenues from India o Falling ARPU(Average Revenue Per User) o Intense Competition & Shortage of Bandwidth o New Players coming in India o Uncertain Economic conditions o Mobile Number Portability - upcoming Challenge.

• FUTURE PROSPECT OF TELECOM SECTOR o Telecom sector targets announced by Government of India o 650 million subscribers by 2013( o 64.5 million broadband subscribers by 2013 o Usage of internet based mobile services in More than 11,000 remote

villages by 2015.

Oman's communications provider Nawras is partnering with Tata Communications to offer a full suite of international services including the first Global Virtual Private Network (GVPN) in Oman, the company has announced.

"By connecting to Tata Communications' global network, including the world's first wholly-owned fiber optic sub-sea network ring around the globe, corporate customers will have immediate access to all of Tata Communications' international carrier partners," it said in a statement.

"Our partnership with Tata Communications will ensure that our customers can rely on a single provider for the fastest, most diverse and infinitely scalable network services across the globe."

"Nawras GPVN will seamlessly converge data, voice, video and multimedia to deliver secure, critical real-time information for every business need," said Nawras Chief Strategy Officer Sheikh Abdulla bin Issa Al Rawahy.

The new services will offer secure, international digital communications for multinational companies linking Nawras' domestic network directly to over 200 of the world's main business hubs and data centers via Tata Communications' global network.

COMMUNICATIONS; COMPUTER; ETC. (% OFOMAN:

The Communications; computer; etc. (% of service exports; Bop) in Oman was last reported at 15.01 in 2011, according to a World Bank report published in 2012. Communications, computer, information, and otBop) cover international telecommunications and postal and courier services; computer data; news-related service transactions between residents and nonresidents; construction services; royalties and license fees; miscellbusiness, professional, and technical services; personal, cultural, and recreational services; and government services not included elsewhere. Service exports refer to economic output of intangible commodities that may be produced, transferred, and consumed at the same time. International transactions in services are defined by the IMF's Balance of Payments Manual (1993), but definitions may nevertheless vary among reporting economies.forecasts for Communications; computer; etc. (% of service exports; Bop) in Oman.

"Nawras GPVN will seamlessly converge data, voice, video and multimedia to deliver time information for every business need," said Nawras Chief

Strategy Officer Sheikh Abdulla bin Issa Al Rawahy.

ces will offer secure, international digital communications for multinational companies linking Nawras' domestic network directly to over 200 of the world's main business hubs and data centers via Tata Communications' global

COMPUTER; ETC. (% OF SERVICE EXPORTS; BOP

The Communications; computer; etc. (% of service exports; Bop) in Oman was last reported at 15.01 in 2011, according to a World Bank report published in 2012. Communications, computer, information, and other services (% of service exports, Bop) cover international telecommunications and postal and courier services;

related service transactions between residents and nonresidents; construction services; royalties and license fees; miscellbusiness, professional, and technical services; personal, cultural, and recreational services; and government services not included elsewhere. Service exports refer to economic output of intangible commodities that may be produced, transferred, and consumed at the same time. International transactions in services are defined by the IMF's Balance of Payments Manual (1993), but definitions may nevertheless vary among reporting economies. This page includes a historical data chart, news and

r Communications; computer; etc. (% of service exports; Bop) in Oman.

145

"Nawras GPVN will seamlessly converge data, voice, video and multimedia to deliver time information for every business need," said Nawras Chief

ces will offer secure, international digital communications for multinational companies linking Nawras' domestic network directly to over 200 of the world's main business hubs and data centers via Tata Communications' global

SERVICE EXPORTS; BOP) IN

The Communications; computer; etc. (% of service exports; Bop) in Oman was last reported at 15.01 in 2011, according to a World Bank report published in 2012.

her services (% of service exports, Bop) cover international telecommunications and postal and courier services;

related service transactions between residents and nonresidents; construction services; royalties and license fees; miscellaneous business, professional, and technical services; personal, cultural, and recreational services; and government services not included elsewhere. Service exports refer to economic output of intangible commodities that may be produced, transferred, and consumed at the same time. International transactions in services are defined by the IMF's Balance of Payments Manual (1993), but definitions may nevertheless vary

This page includes a historical data chart, news and r Communications; computer; etc. (% of service exports; Bop) in Oman.

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Export product in telecommunication from Oman NO PRODUCT GROWTH SHARE GROWTH

VAL (%) VAL (%)

1 Insulated Wire & Cable 47,975 0.08 -47,975

2 Copper Wire 4,096 0.01 -4,096

3 Stranded Wire 2,903 0 -2,903

4 Telephone, Fax & Switching Apparatus 2,093 0 -2,093

5 Computers, Printers & Storage Units 1,416 0 -1,416

6 Cell Phones, Video Recorders 1,229 0 -1,229

7 Records & Tapes 1,026 0 -1,026

8 Television, Radio & Assessory Parts 823 0 -823

9 Computer & Office Machines Parts 667 0 -667

10 Microphones 9% 0 -377

11 Electronic Integrated Circuits 190 0 -190

12 TV Receivers 245 0 -245

13 Transistor & Semiconductor Devices 223 0 -223

14 Aluminum Wire 102 0 -102

15 Electric Signal & Safety Equipment 96 0 -96

COMMUNICATIONS; COMPUTER; ETC. (% OF SERVICE IMPORT S; BOP) IN OMAN

Communications, computer, information, and other services (% of service imports, Bop) cover international telecommunications and postal and courier services; computer data; news-related service transactions between residents and nonresidents; construction services; royalties and license fees; miscellaneous business, professional, and technical services; personal, cultural, and recreational services; and government services not included elsewhere. Services imports refer to economic output of intangible commodities that may be produced, transferred, and consumed at the same time. International transactions in services are defined by the International Monetary Fund's (IMF) Balance of Payments Manual (1993), but definitions may nevertheless vary among reporting economies. This page includes a historical data chart, news and forecasts for Communications; computer; etc. (% of service imports; Bop) in Oman.

WORLD BANK

OMAN IMPORTS:

Imports in Oman decreased to 991.90 million OMR in October of 2012 from 1106 million OMR in September of 2012. Imports in Oman are reported by the National Center for Statistics & InformatiImports averaged 569.25 million OMR reaching an all time high of 1265.30 million OMR in July of 2012 and a record low of 242.50 million OMR in January of 2005. Oman mainly imports road vehicles, metals, itransport equipment, telecommunication equipment and chemicals. Oman’s main import partners are the United Arab Emirates, Japan, the United States, China, India, Germany, South Korea, Saudi Arabia, Thailand and France. . chart with historical data for Imports in Oman.

ANK INDICATORS - OMAN - BALANCE OF PAYMENTS

Imports in Oman decreased to 991.90 million OMR in October of 2012 from 1106 million OMR in September of 2012. Imports in Oman are reported by the National Center for Statistics & Information - Oman. Historically, from 2004 until 2012, Oman Imports averaged 569.25 million OMR reaching an all time high of 1265.30 million OMR in July of 2012 and a record low of 242.50 million OMR in January of 2005. Oman mainly imports road vehicles, metals, industrial machinery, machinery and transport equipment, telecommunication equipment and chemicals. Oman’s main import partners are the United Arab Emirates, Japan, the United States, China, India, Germany, South Korea, Saudi Arabia, Thailand and France. . This page includes a chart with historical data for Imports in Oman.

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ALANCE OF PAYMENTS

Imports in Oman decreased to 991.90 million OMR in October of 2012 from 1106 million OMR in September of 2012. Imports in Oman are reported by the National

Oman. Historically, from 2004 until 2012, Oman Imports averaged 569.25 million OMR reaching an all time high of 1265.30 million OMR in July of 2012 and a record low of 242.50 million OMR in January of 2005.

ndustrial machinery, machinery and transport equipment, telecommunication equipment and chemicals. Oman’s main import partners are the United Arab Emirates, Japan, the United States, China, India,

This page includes a

z

Communications, computer, etc. (% of service imports, BoP) in Oman was 27.00 as

of 2004. Its highest value over the past 30 years was 59.00 in 1991, while its lowest

value was 21.34 in 2002.

Definition:

Communications, computer, information, and other services (% of service imports,

BoP) cover international telecommunications and postal and courier services;

computer data; news-related service transactions between residents and

nonresidents; construction

business, professional, and technical services; personal, cultural, and recreational

services; and government services not included elsewhere. Services imports refer to

economic output of intangible comm

consumed at the same time. International transactions in services are defined by the

International Monetary Fund's (IMF) Balance of Payments Manual (1993), but

definitions may nevertheless vary among reporting





related service transactions between residents and

nonresidents; construction services; royalties and license fees; miscellaneous



economic output of intangible commodities that may be produced, transferred, and



definitions may nevertheless vary among reporting economies.

148





related service transactions between residents and

services; royalties and license fees; miscellaneous



odities that may be produced, transferred, and



149

Communications, computer, etc. (% of service export s, Bop)

Communications, computer, etc. (% of service exports, Bop) in Oman was 18.46 as


value was 3.43 in 2001.

• Country comparison :

Year Value Year2 Value2 Year3 Value3 1996 9.99 2001 3.43 2006 33.93 1997 19.68 2002 3.43 2007 38.02 1998 9.07 2003 4.37 2008 29.67 1999 7.16 2004 4.59 2009 21.35 2000 5.09 2005 21.88 2010 18.46

Import product in telecommunication from Oman

NO PRODUCT TRADE SHARE GROWTH

VAL (%) VAL (%)

1 Computer & Office Machines Parts 27,973 0.14 163.38

2 Cel Phones, Video Recorders & Radio Transcievers 53,781 0.27

3 Copper Wire 58,484 0.29 207.41

4 Television, Radio & Assessory Parts 33,358 0.17 10.01

5 Computer & Office Machines Parts 27,973 0.14 163.38

6 Computers, Printers & Storage Units 26,382 0.13 30.78

7 Telephone, Fax & Switching Apparatus 24,954 0.13 -37.82

8 Electrical Insulators of Any Material 5,338 0.03 -37.05

9 Video Recording Equipment 1,196 0.01 -29.43

OMAN IMPORTS TELECOMMUNICATION SECTOR

• Broadband Telecommunications • Conferencing Solutions • Internet Telephony • Phone System & Parts • Satellite Communications • Telecom Cables • Telecommunication Equipment & System • Telephone Networking • Wireless Communication

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DOCUMENTING UPSTREAM FILTERING IN OMAN VIA INDIA KEY FINDINGS: Data collected from Oman shows that web filtering applied by India-based ISPs restricting access to content for customers of an ISP in Oman. While unusual, content filtering undertaken in one political jurisdiction can have an effect on users in another political jurisdiction as a result of ISP routing arrangements – a phenomenon known as “upstream filtering.”Content found to be filtered includes news sites, political blogs and file sharing sites. Some variability in filtering was documented, potentially linked to certain measures to loosen filtering regulations in India. BACKGROUND: The Open Net Initiative1 (ONI) has investigated Internet filtering and surveillance practices since 2003 and has documented national-level filtering of the Internet in over forty countries. Traditionally, such filtering is implemented by Internet service providers (ISPs) at the request of governments for the purpose of striating content available to domestic audiences. In general, conventional web filtering is designed for exclusively domestic impact, though other forms of content control, such as takedown requests, may affect access across borders. However, content filtration is not always limited by jurisdiction. ISPs may engage in peering3 or transit agreements with other providers as a means of gaining access to the broader Internet. If ISPs peer with providers who filter the connection provided to their peers, that filtering may be passed on to the ISP’s user base. While unusual, past ONI research has documented this practice, known as “upstream filtering,” on Number 08 – July 2012several occasions. For example, in 2009, ONI research in Kyrgyzstan found that a number of websites, including news sites and blogging plat forms, were inaccessible as a result of blocking by the state ISP in Kazakhstan, which sells its service to KyrgyzTelecom.5 Similar behavior was observed in Uzbekistan in2004, where content filtering on one Uzbek ISP closely matched that seen in China, a finding supplemented by evidence that this ISP was purchasing connectivity service from China Telecom.6This brief documents and analyzes the upstream filtering of web content for users of Oman’s Omantel ISP as are sult of content restrictions implemented in India. Both India and Oman, it should be noted, already have domestic filtering regimes in place. Previous research by the Open Net Initiative on Omantel has documented filtering of Internet content related to pornography, circumvention tools, gay and lesbian content, as well as content critical of religion.7 Similar research by the Open Net Initiative has found that ISPs in India selectively filter content relating to conflict/security and Internet tools, with a high degree of variability betweenISPs.8Omantel has existing relationships with ISPs in India Omantel and Indian ISP Bharti Airtel have a traffic peering arrangement through ASNs9 AS8529 and AS9498, respectively.10 Bharti Airtel was in fact reported to be a leading contender to purchase a 25% stake in Omantel during that ISP’s privatization process in 200811;however, by 2011 the sale was reportedly on hold.12 Also in 2008, Bharti Airtel and Omantel were among the15 companies that partnered to build the Europe India Gateway, a 15,000 kilometer fiber optic cable project connecting 13 countries.13

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KEY FACTORS 1 The Open Net Initiative is a collaborative partnership of three institutions: the Citizen Lab at the Munk School of Global Affairs, University of Toronto; the Berk man Center for Internet & Society at Harvard Number 08 – July 2012University; and the Sec Dev Group (Ottawa). Research, analysis, and writing of This report by understanding 2 For a description of the ONI testing methodology. 3 Peering is the name of an agreement whereby ISPs agree to station hardware in the same location for mutually beneficial transfer of data. 4 Transit agreements are agreements in which ISPs allow data from another ISP to move through their infrastructure or network either by consent or for a fee. 5 Open Net Initiatives, “Kyrgyzstan. 6 Open Net Initiative, “Internet filtering in the Commonwealth of Independent States 2006-2007” 7 Open Net Initiatives, “Oman. 8OpenNet Initiative, “India”, 9 ASN stands for “Autonomous System Number” and refers to a collection of routing prefixes (groups of IP addresses) that are under the control of a single network operator, company or actor. 10 Fixed Orbits, “Information for AS8529” 11 Rishi Raj and Anandita Singh Mankotia, “Signals are strong on Bharti’s Omantel bid,” October 17, 2008 The Financial Express, Omantel bid /374505/0 12 Tele Geography, “Government plan to sell Omantel stake still ‘on hold’ January 4, 2011, 13 Bharti Airtel, “Bharti Airtel to partner with 15 global telecom majors to build Europe Indian Gateway (EIG), a cable system from India to United Kingdom, 14 Rossi Fernandez, “Anonymous India releases blocked sites list, plans peaceful protest,” May 28, 2012, Tech2, http://tech2.in.com/news/general/anonymous-india-releases-blocked-sites-list-plpeacefulprotest/ 310682 15 Anand Rai, “After defacing govt sites, hackers’ group Anonymous prepares for peaceful protests in top cities; Will you attend,” June 4, 2012, Tech Circle

152

Friendi Mobile (OMAN) signs partnership agreement w ith Idea Cellular of India

A groundbreaking program that bring new services to the regional mobile telecommunications sector is being launched in Oman by Friendi mobile, the first mobile brand that is focused on people with a piece of their heart outside Oman, i.e. expatriates and other foreigners.

The program, known as 'Reach Out', is about providing Friendi mobile customers and their family and friends back home with competitive mobile international call rates and innovative services for keeping in touch. The first phase of the Reach Out program is the launch today of the partnership between Friendi Group and the leading Indian mobile operator Idea Cellular. From today, Friendi mobile customers in Oman can call all customers of IDEA Cellular in Kerala at rate as low as 139 BZ per minute, the lowest international mobile call rate from any mobile provider in Oman to India. Customers of IDEA in Kerala will also benefit from a reduced rate when calling Friendi mobile customers in Oman, with all calls charged at only Rs. 9.19 per minute. His Excellency Anil Wadhwa, Indian Ambassador to the Sultanate of Oman, expressed his support for the initiative:

"We have nearly 566,000 Indian expatriates based in Oman from many different

backgrounds, ethnicities and salary brackets, and for some it isn't always affordable

to phone home regularly. Thanks to Friendi mobile, they now have the opportunity to

call their loved ones at reduced rates and keep in touch with home on a regular

basis." Mikkel Vinter, CEO of Friendi GROUP said: "The 'Reach Out' program is a major strategic initiative for our group, and the partnerships with leading mobile operators globally are allowing us to offer our customers in the Same a region even better international call rates and innovative new services. We are today launching the program with India as this in the biggest community of foreigners in Oman and the region in general, and we will be soon be launching with partners in other countries including Pakistan, Sri Lanka, Indonesia, Bangladesh, Philippines as well as selected countries in Europe - This program will truly improve the quality of life for the Friendi mobile customers, so we are looking forward to making the next announcements" With the launch in Oman, Friendi Group has introduced to the region the Mobile Reseller/MVNO (Mobile Virtual Network Operator) model that has become successful in Europe and North America by focusing on narrowly defined customer segments, and then serve this segment exceedingly well rather than try to please all customers at the same time with a "one-brand-fits-all" approach.

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BUSINESS OPPRTUNITY IN FUTURE

� There is one kind of research will be conducted for the purpose of to know the

business opportunity in potential in Oman end mostly the telecom sector in

this country.

� That’s why all different environment of Oman country will be analyzing like

macro-environment, cultural environment political and legal environment and

all other are analyzing.

� Then many kind of suggestion will be given for the development of

international trade of Oman.

Business Environment in Oman

Cultural Environment in Oman

Language:

The official language of Oman country is the Arabic. And such other language like

English Hindi Urdu is generally spoken. Swahili is spoken by some few people but

English is widely and more used in business.

Ethnic groups :

Arab, Baluchi, South Asian (Indian, Pakistani, Sri Lankan, Bangladeshi),

AfricanReligions: Ibadhi Muslim 75%, other (includes Sunni Muslim, Shi'a Muslim,

Hindu) 25%Omani Culture – Key Concepts and Values

� For the better understanding of doing business in Oman , first necessary to

know about the unique business culture .

� The main attitude of Oman is that where time are relaxed then the western

culture and another thing is that people and relationship are the more

important compare to other factor.

� The Oman society hierarchy present will used the different titles and

greetings.

154

.

� The one important thing for a success in any business there will be a mutual

relationship and trust and it will be developed through the personal meeting

among them. That’s why important to gave a some kind of time to in thios

such a activity for continue development of the country.

.

Political Environment in Oman

� The political power in the Oman country is on the hand of sultan qaboos and

he is responsible for taking all such kind of decision and the government

appointment. As the power hand on 1970 the sultan qaboos decided to

promoting the Oman to the innovation economic diversification and political

stability.

Economic Structure and Growth in Oman

� Oman is the agriculture and the rural country, and the government economic

policy which is mainly focus on the growth of non oil sector as agriculture,

fishing , industry, and it diversify the economy and its depeadance mainly on

the oil export.

International Trade in Oman

The Nature of Oman’s International Trade:

� In Oman country the overseas trading is more important. The oil is the key which increase the economy of the Oman. With the more prices in the oil it will be very helpful in the Oman budgeting, trading and foreign reserve. They export mostly the crude oil petroleum and natural gas and they import mainly the machinery and transport equipment. Oman has mainly the benefit of exporting the production of crude oil. The major partners are china Japan south Korea and united Arab

Attitude to International Trade of Oman

� Oman has great relation with the over 140 countries and is a member of over a 105 local and international organization

155

� On 7th October 1971, Oman get the membership of UN. And it also participated in the GCC and Arab league. Oman also get the WTO standard in November 9, 2000 which help the Oman in specially integration in the global market.

� It also takes several operations with the 20 country and also have a free trade agreement with the united states.

Viewing Oman’s International Trade Through Theories Related

The nature of Advantage

� Daniels and Radebaugh have given advantage of Trade Theory into five

categories as below:

� climate, soil and nature resources;

� technology and skill development;

� Comparative advantage against another nation’s endowment of assets;

� climate, soil, minerals and etc, size of population that provides opportunities

to process materials and create markets;

� Some factor that suggest optimum utilization of among all resources

Justification of Telecommunication Equipment Indust ry Potential in Oman

� The Oman’s government has embarked on an ambitious campaign to develop

the information technology (IT) sector. Agreements between Oman

Telecommunications Company (Omantel) and foreign firms hold the potential

to significantly expand telecommunications services and lay the ground for the

establishment of a state-of-the-art IT infrastructure.

� In May 2006, Telecommunication Minister Mohammed bin Abdullah bin Isa

Al-Harthi announced that the government is preparing to “fully liberalize” the

telecommunications sector, with private companies permitted to offer fixed-

line and Internet services (U.S Commercial Service 2009).

Summary of Oman current trade position using the ex tended form of Porter’s Diamond of National Competitiveness

� According to Porter (1994), there are four principal attributes of a nation’s

international success in a particular industry such as: Factor conditions;

Demand conditions; Related and supporting industries and; Company

strategy, structure and rivalry.

156

� In addition, Porter defines the role of chance as well as the role of government

as the secondary determinants. However, a further research by Dunning

(1993) proposed that multi-national business activities bring additional factors

that may encourage advances in support industries, etc.

Factor conditions would be capital, quality of infr astructure

� Demand situation would be determined that “Overall telecommunications

infrastructure and service in Oman remains less developed than in its Gulf

neighbors.

� Fixed line and Internet penetration rates are low, yet the young and growing

population is generating enhanced demand for modern telecommunications

and broadcasting systems.

� Related and supporting industries would be the profitable oil and gas

industries. Oil and Gas is the leading economic sector (U.S. Department of

State 2007).

� Revenue generated can help the Kazakhstan’s government fund the

healthcare industry.

� Are governed by the Telecommunications Regulatory Authority, which was

established by the government in 2003 to oversee all aspects of privatization

and regulation.” (U.S. Commercial Service 2008).

� Multi-national Business Activities in telecommunication industry in Oman have

played important role in supplying technology and equipments or software

solutions for development of Oman’s telecommunication market. Omantel has

contracted with Ericsson, Siemens and Motorola to expand GSM service in

some area.

157

Conclusion

• We have study during this project that what are the political, legal. Economical, environmental policy and demographic condition of the Oman is related with import and export with the India.

• There are more opportunities will be found related to telecommunication sector.

• We have also found that the telecommunication companies, policy and taxation norms, licensing norms, potential export import and business opportunities in Oman.

• We have also found that the current trend of the Oman.

• Omantel, Nawras, samatel, Awaser Oman,Renna Mobile and Majan telecom are

the leading companies in the Oman country in the telecommunication sector.

• We have also found that the Gujarat and India can also start their business unity in the Oman because there are more numbers of telecommunication opportunities.

• we have also found that the rules and regulation of the telecommunication

industry of the Oman.

• During this grand project report of the telecommunication sector of the Oman we have collected more knowledge about the Oman country.

• We have also found that the relationship between the Oman and India.

• During this project we have found various knowledge about the

telecommunication sector of the Oman country.

• The availability of adequate infrastructure facilities is imperative for the overall economic development of the country.

• We have also found that the other parts of the telecommunication sector like

Renewal products, Renewal operation, Renewal IT, Renewal infrastructure, customer relationship.

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BIBLIOGRAPHY

Websites: www.omnet.com www.infoplease.com/ipa/A0107856.html ibde.org/component/content/article/169-country-report-oman.html http://esa.un.org/unpd/wpp/unpp/Panel_profiles.htm http://www.globaltrade.net/m/c/Oman.html International Religious Freedom Report for 2011 www.omantel.com www.nawaras.com www.samatel.com www.majantelecom.com www.omanization.com Books and Journals : “Indian Finance System” by Bharti Pathak BTI 2012 Oman Country Report

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