Telecom royalty increased to 12pc
Business Reporter –
Dec 29: Royalties payable by the nation’s telecom service providers have been increased to 12 per cent with effect from January 1, 2017, up from 7 per cent presently.
This was revealed by Omantel and Ooredoo in separate filings to the Capital Market Authority (CMA) yesterday. The increase, which follows a decision to this effect by the Council of Ministers, was communicated to the two leading operators by the Telecommunications Regulatory Authority (TRA).
Giving details about the impact of the royalty increase on its financials, Omantel said: “If the same increase had been applied for the first nine months of 2016, the effect on net profit would have been a reduction of RO 16 million.”
Ooredoo noted: “If the same increase had been applied for the first nine months of 2016, the effect on net income would have been a reduction of RO 8.7 million or 23.3 per cent.”
Meanwhile, the CMA stated in a circular that it had received an official letter from the Telecommunication Regulatory Authority (TRA) stating that the Council of Ministers has decided to restore the royalty rate for telecom operators in the Sultanate of Oman at 12 per cent as promulgated by Royal Decree.
Trading in shares of Omantel and Ooredoo was temporarily suspended yesterday in the wake of the announcement.