On 8th March 2019; Omantel, a market leader in ultra-low latency networking (ULTN), has launched an international wholesale company, Omantel International (OTI). OTI is managing Omantel’s international voice business and supports partners and customers in accessing new and existing solutions. Capitalizing on Oman’s unique geographic position, Omantel will offer ULTN services to various communication hubs in the Middle East, Asia, Africa, and Europe catalyzing the Digital Transformation globally.
MarketsandMarkets™ View Point:
Vibhanshu Kumar, Team Lead, Research: Telecom and Networking at MarketsandMarkets™, shares his views on the OTI launch:
Omantel is the first telecommunications company in Oman and the primary provider of internet services in the country. The Oman government is the major shareholder (51%) of Omantel. The company has invested in 20 subsea cable systems with landings in more than 120 locations worldwide. It offers direct access to more than 50 countries in Europe, Asia, Africa, the Middle East, and North America, while connecting and optimizing its partners’ applications and services. ULTN services has potential to become significant revenue stream for Omantel. Companies in both developing and developed countries need exceptional Quality of Service for efficient delivery of applications and services in achieving their Digital transformation goals.
Impact of ULTN Service Launch:
The new ULTN services launch has increased the managed network services portfolio of Omantel, which can help the company in gaining a significant market share in the growing global Managed Network Services market. MarketsandMarkets forecasts the global Managed Network Services market size to grow at a CAGR 9% during 2016–2021. Major growth factors for the market include companies’ increasing focus on reducing network downtime and a growing need to meet SLA and other compliances requirements. ULTN services help companies to handle both factors effectively. Emerging economies in APAC and MEA offer several untapped opportunities for telecommunications companies including Omantel.
Source: MarketsandMarkets™ Analysis
Impact on Top Competitors:
In Oman, Omantel enjoys monopoly, however, in adjacent regions it loses its hold and relies mostly on partnerships with other companies, such as Ericsson and TEOCO. ULTN services will help Omantel in reaching out to customers directly in other parts of the world. The company has an opportunity to capture a small yet promising market share in the ULTN services business.
Conclusion:
The launch of ULTN services will help in network and digital transformation of companies in the Middle East as well as worldwide by reducing network downtime considerably and meeting SLA requirements promoting Quality of Service. Omantel can get an early-mover advantage in local markets and increase its market share in the Managed Network Services market.