MVNOs in the Middle East

It is only relatively recently that there has been competition in the mobile markets of most Middle East countries. Over the past five years or so there has been a flurry of new licence auctions and now every country except Qatar has at least two competitors and Qatar will join the group very shortly.

Mobile Virtual Network Operators (MVNOs) are a more recent development. Jordan was the first to implement the policy. Its TRC opened the market to MVNOs in September 2007. Saudi Arabia’s i2 was the first to be awarded a licence, in May 2008.

The Omani TRA announced in November 2007 that it would offer multiple reseller licences. In June 2008 it awarded five class II licences to resell basic mobile services to Injaz International, Kalam Telecommunications, Majan Telecom, Mazoon Mobile and Arab Link (operating as FRiENDi Mobile).

There is some doubt however as to exactly what these licences will allow. Press releases issued by some of the licence winners mentioned the provision of MVNO services. According the the local press, the TRA then issued a statement ‘clarifying’ that none of the five companies awarded Class II licences for reselling basic mobile services had received permission to set up MVNO services.

It is likely that several more countries will also open their markets to MVNOs.