Muscat: According to official disclosures by Omantel and Ooredoo on the Muscat Stock Exchange, the TRA has completed procedures to unify royalty rates across all licensed telecommunications providers, mobile and fixed, of the first, second, and third categories. This step standardizes the annual royalty rate at 10% for all operators in the Sultanate.
Omantel reported that the reduction will positively impact its net profits by RO 1.7 million, while Ooredoo estimates a benefit of RO 2.5 million. The decision is expected to similarly benefit other licensed mobile telecommunications providers across Oman.
Royalty fees, collected annually by the TRA, have historically varied depending on the type of service and operator classification. Omantel, under Royal Decree No. 20/2004, was initially charged a 10% royalty, while Ooredoo, under Royal Decree No. 17/2005, paid 12%. These rates were reduced to 7% before being reinstated to 12% in 2016.
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In 2021, new royal decrees restructured licensing provisions, abolishing fixed royalty rates and giving the government authority to set annual rates.
