MUSCAT – The step comes amid growing concerns that ongoing promotional battles among operators could undermine industry revenues and long-term investments in telecom infrastructure.

The new regulations, which follow consultations with all major telecom providers including Omantel, Ooredoo, Vodafone, Awasr, and Majan Telecom, aim to strike a balance between encouraging competition and preserving the financial sustainability of the sector.

Under the updated rules, the TRA will monitor price trends more closely and may intervene if it observes a reduction in the price of a service by more than 10 percent within a six-month period, or if the average revenue per user falls by more than 5 percent. In such cases, operators, especially those with significant market power, such as Omantel, may be required to seek prior approval before introducing any further price changes.

In addition, if the Authority detects behaviour indicative of a price war, it may impose a three-month ‘cooling-off period’ during which operators would be prohibited from launching new promotional campaigns. The regulations also introduce tighter restrictions on the frequency, duration, and eligibility of such promotions.

Operators will be allowed to issue no more than four offers for the same service over a six-month period, with each offer limited to a maximum duration of 60 days. Only subscribers who have recently used services such as voice, SMS, or data will be eligible, and no offer may lock customers into contracts longer than 12 months. Furthermore, only 5 percent of a telecom operator’s customer base may be on discounted promotional packages at any given time.

The TRA has also retained the authority to assess how promotional campaigns affect the revenue of competing operators. If a particular promotion causes significant financial harm to a competitor, the TRA may step in with corrective measures.

However, following industry consultation, the TRA has removed a clause that would have prevented promotional offers from being extended to individuals and small businesses via tenders, clarifying that government agencies remain eligible.

The TRA has stated that the framework will be subject to regular review and updated as necessary to reflect market shifts and new technological developments. This regulatory overhaul signals the Authority’s commitment to maintaining a competitive yet sustainable telecom environment in Oman, where price-based competition does not come at the cost of long-term service quality and industry health.