Oman Telecom MNO Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Oman Telecom MNO Market Trends and Insights

5G Rollout and Surging Data Traffic

All three operators have launched commercial 5G, lifting down-link speeds to 252.3 Mbps on Omantel’s network and pushing consumers toward higher-value plans. Vodafone’s Ericsson-built greenfield network achieved a 95% Omanization rate, accelerating skills transfer and localized maintenance ^{[1]Ericsson, “Vodafone Oman’s 5G Network Deployment,” ericsson.com}. The sunset of 3G networks in 2024 forced subscribers onto 4G and 5G, widening ARPU and opening fixed-wireless-access prospects for logistics hubs in Sohar and Duqm. Enterprise IoT adoption now outpaces consumer uptake, with use cases in smart metering and port automation catalyzing incremental revenue. Data-traffic momentum underpins the projected 1.8-percentage-point uplift in overall CAGR.

Vision 2040 Digital-Economy Investments

The Ministry of Transport, Communications, and Information Technology earmarked USD 442 million for digital transformation, spawning AI pilots and national accessibility standards for apps and websites ^{[2]Ministry of Transport, Communications and Information Technology, “Digital Transformation Programs,” mtcit.gov.om}. SEZ developments at Duqm and Sohar require dedicated 5G campus networks, while the government’s goal to elevate logistics to global-top-ten status by 2040 deepens infrastructure demand. The country’s ICT sector is valued at USD 5.47 billion in 2025 and is projected to almost double by 2029, reinforcing the +1.2% CAGR impact.

Rising Smartphone and Internet Penetration

Mobile penetration reached 134% by mid-2024, translating into 5.02 million active internet users and 4.39 million social-media accounts. The e-commerce market is on track to double to USD 1.1 billion by 2028, bolstering demand for mobile payments and digital-banking platforms. Rural coverage is improving through satellite licensing for Starlink and OmanSat, ensuring inclusivity and adding 0.9 percentage points to forecast growth. High smartphone adoption also fuels OTT video, music, and gaming traffic, spurring network-capacity upgrades.

Oman as Gulf Submarine-Cable Hub

Hosting more than 20 subsea systems, including the 2Africa and Al Khaleej cables, Oman enjoys unmatched route diversity and wholesale dominance ^{[3]TelecomTalk, “Ooredoo to Land 2Africa Subsea Cable in Oman,” telecomtalk.info}. Omantel maintains 100+ international interconnects, and Equinix’s Salalah data center, launched in November 2024, offers carrier-neutral colocation to hyperscalers. These assets secure stable wholesale margins, lifting the growth forecast by 0.7%. The country’s status attracts regional cloud deployments and deepens roaming-partner ties with 700 networks across 200 countries.

12% Royalty on Telecom Revenues

A uniform 12% levy on gross telecom income caps reinvestment potential and constrains price flexibility. The burden, higher than neighboring GCC norms, forces cost-rationalization measures such as Omantel’s migration of 200 products to a cloud-native charging platform. Vodafone’s asset-light model and Ooredoo’s operational-efficiency drive partly offset the margin squeeze, yet the royalty still shaves 1.4 percentage points off projected CAGR.

OTT Revenue Leakage to Foreign Platforms

Messaging and voice traffic continues its shift to WhatsApp, Telegram, and similar OTT services, eroding legacy revenue streams. As 5G elevates video-call quality, the cannibalization effect intensifies. Operators respond by bundling content and launching fintech ventures, evidenced by Ooredoo’s B2B marketplace and digital-wallet pilots ^{[4]Telecom Review, “Ooredoo Oman Operational Efficiencies,” telecomreview.com}. However, limited regulatory recourse means voice and SMS erosion subtracts 0.6 percentage points from growth forecasts.

Segment Analysis

By Service Type: Data Dominance Drives IoT Growth

Data and internet services held 50.54% of the Oman telecom MNO market share in 2024, anchoring top-line performance as enterprises shift workloads to cloud platforms. Voice still contributes materially but declines annually, while messaging yields continue to contract under OTT pressure. The Oman telecom MNO market size attributed to IoT and M2M services is projected to grow at a 6.08% CAGR through 2030, propelled by smart-city deployments in Muscat and Duqm and automated-meter-reading rollouts for water utilities. Operators monetize these connections via managed-services contracts and edge-computing bundles.

Fixed-wireless-access offerings deliver fiber-like speeds in challenging terrain, augmenting data revenue and reinforcing the centrality of 5G. OTT and PayTV streams add modest upside as local content partnerships mature, whereas roaming and enterprise-solutions lines benefit from Oman’s status as a logistics and tourism hub. TRA’s certification requirements for IoT reliability support premium pricing and keep churn low, further stabilizing data-service cash flows.

Note: Segment shares of all individual segments available upon report purchase

By End User: Enterprise Acceleration Outpaces Consumer Growth

Consumer lines represented 74.79% of the Oman telecom MNO market size in 2024, owing to high device penetration and diversified prepaid and postpaid plans. Yet, enterprise revenues are forecast to expand at a 6.38% CAGR, outpacing mass-market growth as Vision 2040 compels every sector, such as energy, logistics, healthcare, and public administration, to digitize operations. Omantel’s A’amali+ bundles for SMEs and Fiber Pro tiers for corporates illustrate the rising appetite for managed connectivity and cybersecurity packages.

Enterprise ARPU exceeds consumer equivalents by multiples, with contracts often spanning three-year horizons. Private 5G networks for industrial zones and port terminals feature guaranteed latency and slice isolation, commanding premium tariffs. In the consumer arena, unlimited-data plans and content add-ons sustain subscriber loyalty, though margin pressure persists from the royalty regime and OTT substitution. Device-financing offers and embedded-finance features further differentiate operator propositions across both segments.

Geography Analysis

Muscat, housing the largest 5G base-station density and 565 ATMs, remains the prime revenue generator, while Salalah leverages Equinix’s new data center to attract cloud workloads and submarine-cable landings. Sohar and Duqm industrial hubs rely on fixed-wireless-access and fiber back-haul to support petrochemical plants and container terminals. The Oman telecom MNO market size for coastal governorates rises in tandem with port logistics upgrades, while hinterland growth hinges on satellite backhaul.

Terrestrial links connect Oman to every GCC neighbor, reinforcing wholesale income stability and roaming reciprocity with 700 partners worldwide. Fixed-broadband penetration, still 11% in early 2024, offers a runway for fiber builds financed through government-operator co-investment schemes. Tourism centers such as Nizwa and coastal resorts generate seasonal spikes in roaming usage, magnified by 5G’s higher throughput for social-media uploads, video calls, and digital-tourism apps.

Rural districts benefit from March 2025 Starlink licensing and OmanSat’s Category 1 authorization, narrowing the digital divide in mountainous and desert areas. The TRA’s open-access mandates ensure smaller ISPs can lease capacity, stimulating regional service diversity. Transportation megaprojects, including the USD 3 billion railway and 800 miles of new roads, require robust mobile coverage and IoT sensors for smart-infrastructure management. Collectively, these geographic dynamics deepen national connectivity resilience and diversify revenue sources beyond Muscat’s urban core.