Nawras plans to increase investment in 2008 on back of royalty cut

13 Mar 2008

Omani cellco Nawras, majority-owned by Qatari incumbent Qtel, has said it plans to boost investment this year to increase market share, and has hired two banks to advise on a possible initial public offering (IPO). ‘We will invest OMR100 million (USD259.8 million) in infrastructure, people, marketing and customer services in 2008,’ CEO Ross Cormack told Reuters in an interview. Nawras spent OMR80 million last year on capital projects, and has engaged an international bank and a ‘major’ local bank to advise on selling a 40% stake, Cormack said. The company’s licence requires it to sell shares to the public by 2010.

In October 2007, Oman’s government cut royalties on mobile phone services to 7% from 12%, and applied the cut retroactively from the start of the year. ‘The royalty cut saved us [up to] OMR2.5 million last year, so it would save at least that much this year… we will use investments that it frees up to build further infrastructure this year than we would have done,’ said the CEO.

Oman,Ooredoo Oman,

Subscribe



Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share