Muscat – Oman’s Telecommunications Regulatory Authority (TRA) has decided to unify the royalty rate for all telecommunications services—both mobile and fixed—at 10% of revenues, effective from the 2025 financial year. This reduces the mobile service royalty rate from 12% to 10%, aiming to lower royalty expenses for telecom operators and improve their profitability.
The decision applies to all Class I, II, and III telecom license holders across Oman. In a disclosure to the Muscat Stock Exchange, Omantel, the country’s largest telecom provider, confirmed the reduction in mobile royalty rates will positively impact its net profit by RO1.7 million (net of taxes) for the first half of 2025. The fixed service rate remains unchanged at 10%.
Omantel emphasized its commitment to regulatory compliance and transparent disclosure of material financial developments. Similarly, Ooredoo Oman acknowledged the TRA’s notification and expects an after-tax benefit of approximately RO2.5 million for the full year 2025. The company expressed appreciation for the regulator’s efforts to standardize royalty rates, noting the positive financial impact.
