Awaser Oman-PCCW out, Nawras will be 2nd fixed line operator
The ever-vigilant Muscati had buzzed me about this development yesterday, and today it proved right as I cross checked with a few sources. And, the below report proves that Awaser Oman-PCCW Consortium lost their licence as they could not meet financial obligations set by TRA.
MUSCAT: Nawras, the Omani affiliate of Qatar Telecommunications Co (Qtel), has won a licence to set up Oman's second fixed-line network, a source at Nawras told Reuters on Tuesday.A source said Nawras had been the top choice of TRA among the bidders from day one, and it came as a surprise when Awaser Oman-PCCW Consortium was awarded the licence initially.
The award ends the monopoly of state-run Oman Telecommunications Co as the Gulf Arab state liberalises the sector as part of efforts to encourage foreign investment to counter falling oil production.
The source spoke on condition of anonymity because he is not authorised to discuss the issue with media. Officials at the Telecommunications Regulatory Authority could not be reached, but a government source confirmed the report to Reuters.
UPDATE: Nawras’ selection is official now. TRA issued a press statement in the evening.
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6 Comments:
How nice!
Any reasons why the license was given to Oman-PCCW if they had soo much interst in putting it in hands of Nawras
Congrats to Nawras. It's just politics.
It makes more sense for Nawras to get the license because 1) they already have some infrastructure with a fiber optic backbone covering much of the country, and 2) it would result in direct 1 to 1 competition between Omantel and Nawras with each company offering the full product range from fixed to mobile.
However, Nawras is part of Q-Tel and they don't have much experience in setting up fixed line businesses in third countries; whereas PCCW operates networks in many countries and have technological knowhow for more advanced technology than what Qtel currently offers in Qatar.
I guess the dilemma facing the TRA was whether to accept a bid from Awaser PCCW which is probably better technologically and at higher offered price for the license but with an unknown, unproven Omani partner and a shaky balance sheet, or to accept Nawras at a lower license fee but better all-round proposition. At first they decided to go for the money and the big name. But then it turned out that the consortium had the big name, but not the money. Deadline passed. License transferred from Awaser/PCCW to Nawras.
(note: all the above is entirely my own personal extrapolation without having any knowledge about what really went on at the TRA)
Muscati,
No worries, everyone has his own theory, and I agree with yours.
bobby
Official reason: They failed to meet some requirements.
PFL
More than that.
muscati
Makes a lot of sense. Role of 'invisible hands' can't be ruled out.
thanks Muscati!
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