Gulf: Renna argues that there is more scope for MVNOs to raise competition

[zawya] Renna, one of the first mobile reseller companies in the region recently participated in the CEO Summit 'Telecoms Leaders 2009' held as part of MECOM 2009 in Abu Dhabi bringing together senior professionals in the Middle East's telecommunications industry. Niklas Nielsen, CEO, renna (Majan Telecommunications), shared the panel with Dr Amer al Rawas, CEO, Omantel and Alan Horne, General Director of TRA Bahrain discussing the role of regulation in the Middle East and the growing level of liberalisation.

Examining the role of MVNOs in reshaping the telecoms landscape in the Middle East, Nielsen highlighted the success factors for the market entry of MVNOs providing insights on the profitability model of a MVNO. Nielsen said, "MVNO is well known in other parts of the world as a business model that adds further value to the telecom market once a certain level of maturity and saturation has been reached as is the case in the Sultanate. With Oman leading the way by opening the market to the MVNO model known as Mobile Resellers, all eyes in the regional telecommunications industry are currently fixed on Oman. The developments and success of renna will be closely monitored, and we are fully determined on making it a success story."

Responding to various inquires related to the process leading up to the signing of the agreement between renna and Oman Mobile and the nature of the agreement, Nielsen added, "The partnership is definitely for the long-term and will be evaluated accordingly. It is a win-win situation for renna, Oman Mobile and the Oman telecom industry as a whole. By sharing their network with renna, Oman Mobile benefits from renna's entry into untapped market segments whereby traffic to Oman Mobile's network is increased.

The additional margins from this wholesale business can be used as valuable contributions to the ongoing expansions and improvements of the network and therefore the benefit of society." On the backdrop of weeks of successful operations after renna's launch on May 6, Nielsen discussed the company's history, vision, business model and shareholders further reaffirming its role as a market educator with value added services and products to the Omani telecom landscape. He further added, "renna's value proposition lies in being clear and transparent in its communication with no hidden charges, no monthly fees and no 'fine print'."

Liberalisation to further growth in the telecoms sector: renna CEO