@conradprabhu –
The Telecommunications Regulatory Authority (TRA) of the Sultanate of Oman plans to upgrade retail telecom tariff regulation with a view to, among other things, curbing predatory pricing and other anti-competitive practices by market players.
The move comes on the heels of the formal entry of a third mobile operator in the country’s telecom space. Vodafone Oman’s launch promises to intensify competition in a market that already boasts two well-established operators and a host of mobile virtual network operators (MVNOs) among other service providers.
Draft regulations on retail tariffs were published by the Authority earlier this month aimed at garnering public feedback during a period of public consultancy before they are formally approved for implementation.
The regulations seek to curb predatory pricing and other anti-competitive practices by market players. When eventually enacted via a TRA Decision, it will supersede regulations governing telecom retail tariffs that came into effect in 2016, when the telecom sector was far less crowded than it is today.
Besides safeguarding the interests of the country’s roughly 6.3 million-strong telecom subscriber base, the new regulations also seek to “lessen, distort or eliminate competition in the market”.
The revised guidelines empower the Authority to intervene if it discerns an “appreciable risk of abuse of domination or other anti-competitive behaviour”, which may include, among other things, price discrimination, predatory pricing, margin squeeze, excessive pricing, lock-in of consumers or bundling of services.
Inevitably, the primary focus of the new regulations is towards what is referred to as the ‘Dominant Licensee’, which the TRA describes as a licensed telecom service provider that has been formally determined to be dominant by a decision of the Authority in a relevant Retail Market.
Notably, it bars the Dominant Licensee from implementing a new tariff or amending an existing tariff if deemed to be “anti-competitive”. Additionally, the Dominant Licensee is banned from launching any ‘Below the Line Offer’ – described as any “promotional offer by a non-dominant licensee directly and only to a specific consumer, or a group of consumers, without publishing or advertising the offer”.
Likewise, loyalty programmes cannot be used by a Dominant Licensee to attract new consumers. Rewards from such loyalty schemes for existing customers are limited to only non-telecom services.
The new regulations also place curbs on the kind of language that licensees may use to advertise their tariffs. “The tariff advertisement shall not use superlative forms, such as, without limitation, “lowest rates”, “widest coverage”, or “best network” unless the licensee can objectively prove such claims by indicating the source of claim in its advertisement in a clear manner and such source shall be (a). from an independent and reputed entity; (b) based on latest available test result/research report; and (c) free from any caveat, condition or limitation,” the draft regulations warn.
Penalties ranging from RO 8,000 to RO 20,000 are stipulated for any breach of the provisions of the Retail Tariff Regulations.
