Case Study: Oman MVNO

The Sultanate of Oman presents an interesting case story on how the MVNO model can be a game changer for its Host Network Operator as well as adding value for the society it operates within. Oman’s national incumbent, Omantel, managed to reverse years of declining market shares to a strong growth in market shares as well as wholesale revenues when it signed up two MVNOs to its network - Renna Mobile and Friendi Mobile.

Omantel cleverly designed a strategy whereby the two MVNOs would complement their own market strategy by letting the MVNOs attach those segments where Omantel’s main competitor was strong and which they regarded as non-core segments to themselves. In their vetting process they prioritised that the two MVNOs possessed the necessary management capabilities and experience to ensure a strong and successful implementation of the launch and roll out of their services. As an example, Renna Mobile became EBITDA positive as the first MVNO in Middle East shortly after its launch and was as per Q1 2015 the fastest growing mobile operator in Oman.

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