A report by Ookla reveals that Vodafone, which entered the Omani market in 2022, has captured 10% of the subscriber base, challenging the dominance of Ooredoo and Omantel. Vodafone’s successful strategies in network investment, service quality, and digital engagement have played a key role in attracting customers from its competitors.
Vodafone’s focus on offering 5G services and adopting an asset-light business model has helped it gain significant traction in Oman. The company distinguished itself through competitive pricing, tailored tariff plans, and a strong digital presence. Vodafone’s 4G performance is leading the market, with a download speed of 66.40 Mbps in Q3 2024, surpassing Omantel’s 52.23 Mbps and Ooredoo’s 51.04 Mbps. However, Vodafone still trails in 5G with a download speed of 111.21 Mbps, compared to Omantel’s peak of 249.19 Mbps.
Vodafone has been the primary beneficiary of customer churn in Oman, especially from Omantel users. Users switching from Omantel experienced a notable improvement in both 4G and 5G download speeds. On the other hand, those moving from Ooredoo saw speed improvements in 4G but a decline in 5G speeds.
In terms of upload speeds, Vodafone leads with around 15 Mbps in 4G, while Omantel and Ooredoo have 11-12 Mbps. For 5G, Vodafone initially led in upload speeds, reaching 59.3 Mbps in Q3 2022 but saw a significant drop, stabilizing at 20.98 Mbps in Q3 2024. Omantel and Ooredoo, however, have maintained more stable upload speeds, generally below 20 Mbps.
Vodafone’s investment strategy has focused on minimizing capital expenditure. The company leased tower capacity from Oman Tower Company and used Ooredoo’s 4G network, connecting sites with fiber lines from Oman Broadband. Vodafone’s attractive entry packages and subsequent offerings, like the ‘Vodafone Red’ plans, have helped it to undercut competitors.
As part of its digital-first approach, Vodafone launched the My Vodafone App to streamline customer onboarding and engagement. Its social media campaigns and collaborations with local influencers further boosted brand visibility.
In terms of infrastructure, Vodafone doubled the number of 5G sites from 750 in 2021 to 1,500 in 2023, resulting in a 120% increase in coverage and a 175% growth in revenue. The company aims to capture a 30% market share by 2032 in a market with 134% mobile penetration.
