Analysys Mason - Market Analysis 2019-09-24

Workshop to assess potential strategic options
3-year strategy for Awasr
Sameer Gupta, Siddharth Thakkar, Tanmay Jaipurkar, Nikita Jindal
24 September 2019
2019142-382 | Confidential
Contents Introduction
Macroeconomic overview
Oman fixed broadband market overview
Understanding Awasr
Initial assessment of strategic options for Awasr
Strategic initiatives for Awasr
Next steps
Annexure
Introduction 3
Objective and structure of the presentation
▪ The objective of this presentation is to help Awasr team define its next 3 years strategy by evaluating and assessing all the potential
strategic options Awasr has (considering the future market evolution) to grow its business and meet its strategic objectives. In order to
stimulate the assessment, this presentation has been structured into the following sections:
– Macroeconomic overview of Oman market – the objective is to present a view on how underlying macroeconomic metrics are expected
to evolve which may have an impact on how fixed broadband market would grow as well as on the potential strategy for Awasr
– Overview of Oman fixed broadband market from demand, competition and regulatory perspective – the objective is to provide an
understanding of the key trends in the market and what are the key implications for Awasr
– Understanding of Awasr business – the objective is to revisit how Awasr has grown and perform over last few years and what are its
Strengths, Weaknesses, Opportunities and Threats
– Initial assessment of strategic options for Awasr – the objective is to lay out broad strategic directions Awasr could pursue in this
evolving telecoms market to achieve its strategic objectives. This includes an assessment of each of the strategic directions based on
several parameters to provide a holistic view and help with decision making
– Strategic initiatives for Awasr – the objective is to lay out a long list of strategic initiatives for Awasr for each of the four broad
directions presented and evaluated in the previous section. All the initiatives have been evaluated in detail (from outside-in and
international best practices perspective) and presented with different perspectives for key stakeholders to do an in-depth evaluation
considering Awasr specific aspects and finally choose the most plausible options to pursue in next 3 years
– Annexure – it comprises background research and analysis to support our key findings
Introduction 4
Expectations from Awasr’s division heads
At the end of the presentation, the various division heads would be expected to:
1. Evaluate and shortlist the most feasible and value generating strategic initiatives for Awasr to pursue in the next 3 years to meet the
overall strategic objectives. Evaluation of these initiatives could be done on the basis of:
i. Size of opportunity: market size / revenue potential
ii. Associated cost/investment: expected opex and capex
iii. Ease of implementation: fit with internal capabilities, availability of partners and Awasr’s ability to partner, time to market,
challenges/risks and any other implementation factors
Evaluation of each strategic initiative based on the above three criteria should be done by providing a rating from 0-4 (0 being most
unfavourable and 4 being most favourable) supported by reasons and associated factual evidence
2. Help Awasr’s finance team to update the business plan with the impact of shortlisted strategic options by providing the following inputs
over next few days:
i. Commercial division: impact on revenue (in terms of subscribers and ARPU) and opex
ii. HR and admin division: opex and capex (office and equipment)
iii. Operations: COGS and opex
iv. Corporate strategy: opex
v. COO office: opex
vi. Technology: capex (network equipment, systems, licences, CPE etc.)
vii. Finance: opex
Introduction 5
We propose to follow the below process over next couple of weeks to finalize the
strategic initiatives for Awasr
Workshop 26 September w/c 29 September w/c 06 October
▪ Analysys Mason to present the list of ▪ Division Heads to evaluate and assess ▪ Analysys Mason will process the inputs
strategic options for Awasr supported by each of the strategic options based on received to finalize the shortlisted
background analysis the evaluation framework options and present it to the Awasr’s
team
▪ Analysys Mason to provide a framework
▪ Analysys Mason and the finance team
will conduct separate meetings with
for Awasr team to evaluate and shortlist
each division heads and their respective
options
teams
▪ Awasr team to contribute in terms of ▪ The objective will be:
validating the analysis done by Analysys
– to clarify any questions and
Mason and evaluating the options based
provide relevant details
on the proposed framework
– to get each division’s
assessment and evaluation of
each of the strategic option
based on the criteria
▪ Division Heads to provide inputs to the
Finance team to update the business
plan
Understanding Awasr
Next steps
Annexure
Macroeconomic overview 7
The population in Oman is expected to grow over the next few years; the country is
characterised by a young population – 44% of the population is 25-39 years old
Total population in Oman (million) Population split by age (%) in Oman
Forecast Forecast
+3%
100%
5.3
+4% 5.1
5.0
4.7 4.8
4.6 4.6
4.4
4.2 75%
4.0
50%
25%
0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
X% CAGR 0-14 25-29- 40-44 55-59
15-19 30-34 45-49 60+
▪ The population in Oman was 4.6 million in 2018, growing at a
20-24 35-39 50-54
CAGR of 4% over 2014-2018
▪ It is expected to grow at a CAGR of 3% over 2018-2023 ▪ Oman is characterised by a young population, with 43% of the
population in the age group of 25-39 years in 2018
2019142-382 | Confidential Source: EIU, Euromonitor

The number of urban households is expected to grow over 2018-2023; Muscat is

the most densely populated Governorate, with the highest share of households
Number of households (‘000s) and % of urban households in Population density by Governorate in Oman (people per sq. km)
Oman
Urban households (’000s) Urban households % Governorate Household % (2018) Population density
(2018)
Rural households (’000s)
Muscat 34% 363.6
Forecast 88%
86% 87% 88% 89%
83% 84% 85% 695 Al Batinah North 16% 96.3
81% 82%
709
662 679
622 643 Ad Dakhliyah 10% 14.8
560 575 575 585
Al Batinah South 9% 80.0
576 598 611 631 Dhofar 9% 4.6

491 529 553
454 472 477
Ash Sharqiyah South 7% 26.3
106 104 98 94 93 90 86 82 83 78 Ash Sharqiyah North 6% 13.3

2015
2014
2016
2017
2018
2019
2020
2021
2022
2023
Adh Dhahirah 5% 6.1
Al Buraymi 2% 14.3
▪ The number of households in Oman is expected to grow over
2018-2023 at a CAGR of 3% to reach 709,000 households in
Musandam 1% 22.4
2023 from 622,000 households in 2018
▪ The proportion of urban households is expected to increase Al Wusta 1% 0.6
over the forecasted period
2019142-382 | Confidential Source: Euromonitor, NCSI

The expat population in Oman contributes a high share to the total population; adult
literacy rate is high and has increased over the last few years
Split of Omani and expat population in Oman (%) Adult1 literacy rate in Oman (%)
95% 96% 96%

92% 93%
43% 44% 45% 45% 44%
57% 56% 55% 55% 56%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Omani popualtion Expat population
▪ Expat population contributes to a high share (44% as of 2018) ▪ The literacy rate in Oman has increased over the last few years
of the total population to reach 96% in 2018
▪ Majority of this expat population is South Asian ▪ The highest literacy rate in 2018 was in the age group 15-19.
This age group is expected to drive the adoption of broadband
as the population in the age group gets employed over the next
few years and become the prime decision makers in
households
Notes: 1. % of people aged 15 and above

2019142-382 | Confidential Source: NCSI, World Bank
The GDP per capita and disposable income are expected to rise while spend on telecom
services as a % of disposable income is expected to be stable over the next five years
Nominal GDP1 (OMR billion) and GDP1 per capita in Oman (‘000 Total disposable income1 (OMR billion) and consumer spend on
OMR) telecom services as a % of total disposable income in Oman
GDP per capita (’000 OMR) X% CAGR
Total disposable income (OMR million) X% CAGR
GDP (OMR billion)
Forecast Telecom spend as a % of disposable income
4%
7.8 Forecast
7.1 7.2 7.2 7.2 +5%
6.6 6.9 4.3%
6.5 3.7%
6.1 3.7%
5.8
36 37 38
34
17
16
31 32
15
30
15
14
27 28
13
26
13
12
12
11
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
▪ Over 2018-2023, the nominal GDP in Oman is expected to grow at a ▪ The disposable income in Oman has grown at a CAGR of 4% over 2014-
CAGR of 4%, reaching OMR38 billion in 2023 2018 and s expected to grow at a higher rate of 5% over 2018-2023
▪ GDP per capita is expected to grow at a CAGR of 2% over the same ▪ While the consumer spend on telecom services as a proportion of
period and reach OMR7,199 in 2023 disposable income has decreased over the last few years, it is expected
to remain stable over the next five years
Note: 1. At current prices

2019142-382 | Confidential Source: Euromonitor
Demand side market overview
Supply side market overview
Regulatory landscape
Implications for Awasr
Understanding Awasr
Next steps
Annexure
Oman fixed broadband market overview – Demand side 13
Number of fixed broadband connections in Oman has grown rapidly to reach ~450k
connections in Q2 2019, of which 93% connections are residential
Total fixed broadband connections by residential and enterprise
(‘000s)
▪ Oman’s fixed broadband industry has been
71% CAGR (2014-18)
68%
growing strongly over the period 2014–2Q2019,
with household penetration growing from 32% to
60% 24% 71%
448
50%
422 31 13% ▪ This is largely driven by multiple policies/initiatives
(7%)
29 introduced by the government, including:
41% 349
26 – Digital Oman Strategy to transform Oman
285 toward Sultan Qaboos’ vision of a sustainable
32%
25
233 knowledge-based economy by 2020; and
23 417
177 393 (93%) – National Broadband Strategy (NBS), launched
18 322 25% in 2013 to allow residents and business to
260
211 have access to high-speed broadband at
159 affordable prices, and increase access of
broadband to rural and remote communities
2014 2015 2016 2017 2018 2Q2019
Total connection HH penetration %1 Residential Enterprise
Note: 1.HH penetration is based on the NCSI latest approved population

2019142-382 | Confidential Sources: NCSI, TRA, Euromonitor, TeleGeography
Oman’s FBB household penetration (71%) is towards the lower end amongst Middle
Eastern countries and other developed markets
Comparison of Oman vs. other regional markets as well as European and South East Asian markets (2Q2019)
High penetration in small

city-state countries
116%
112%
99%
94% 93% 91%
83% 82%
79% 76% 74%
71%
57%
48%
36% 34%
Hong Singapore France UK China Norway Germany Qatar UAE Bahrain Iraq Oman Turkey Iran Saudi Kuwait
Kong Arabia
2019142-382 | Confidential Source: Telegeography, TRA

In terms of technology, ADSL and FWA still account for the majority of current FBB
connections while FTTH adoption has started growing rapidly over the last five years
Total fixed broadband connections by technology (‘000s)
CAGR ▪ All fixed broadband technologies have seen double digit

(2014-18) growth annually over the last five years, with FTTH growing
448 the fastest at ~87% CAGR, albeit from a small base
422
97 ▪ In 2Q2019, ~78% of fixed broadband subscribers were
87%
84 (22%) using ADSL and FWA while only 22% adopted FTTH
349
+24% ▪ Wide coverage explain the current popularity of ADSL and
52
FWA:
285
144
43%
33 131 (32%) – Omantel’s ADSL network reached 90% of
233 98
households, as at Feb 2019
15
84
177 – Ooredoo’s FWA network covered 88% of households
70
7
across the Sultanate, as at Sep 2018
56
207 ▪ In contrast, fibre broadband has a much more limited
199 207 16%
168 (46%) coverage
148
114
– By end of 2019, Oman Broadband has planed to
cover 297k premises or ~46% of total households
2014 2015 2016 2017 2018 2Q2019
– FTTH take-up has been increasing due to increase in
ADSL FWA FTTH X% CAGR coverage, competitive pricing and evolving customer
bandwidth needs
2019142-382 | Confidential Sources: NCSI, TRA, Euromonitor, TeleGeography

Oman fixed broadband market overview - Demand side 16
Though ARPU has been decreasing, total revenues of FBB has grown by 17% CAGR to
reach OMR129 million in 2018; FTTH accounts for only 27% of the market currently
ARPU of all fixed broadband connections (OMR/month) Total revenue of all fixed broadband connections1 (OMR million)
ARPU for FTTH: FTTH revenues: OMR29.4 million in 2018 (23% of total
OMR36 (2018) and OMR36.2 in 1H2019 market); OMR19.8 million in 1H 2019 (27% of total market)
-4%
32.4 32.7 129
30.7
29.3
27.9 27.9 +17% 111
95
81
74
69
2014 2015 2016 2017 2018 2Q2019 2014 2015 2016 2017 2018 1H20192
X% CAGR X% CAGR
As observed generally in telecom markets, ARPU in Oman is The growth in revenue is driven by the growth in number of
also decreasing by a CAGR of 4% connections which overcomes the effect of decreasing ARPU
Addressable market for Awasr (FTTH) forms only 27% of total market revenue as of 1H2019
1 Calculated based on blended ARPU and average subscriber base in the year
2Revenue for half year 2019
2019142-382 | Confidential Sources: NCSI, TRA
We have used a detailed regression analysis to forecast the total fixed broadband
HH penetration in Oman which leads to total 607k connections by 2023
Regression curve of total FBB household penetration and GDP Fixed broadband connections forecast (‘000) and household
per capita at PPP penetration rate (%) Forecast
120%
+8%
R² = 0.9327
84% 86%
82%
100% 79%
74%
Total FBB household penetration
Oman 2023: 86% 68% 607

+24% 584
Oman 2023 556
80% 60% 521
Oman 2019 477
50% 422
60% Oman 2018
41% 349
32% 285
40%
233
177
20%
0%
- 20,000 40,000 60,000 80,000 100,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
GDP per capita (PPP, Int’l USD) X% CAGR
HH penetration % Total residential
▪ Oman’s FBB household penetration is expected to reach 86% by 2023
▪ This is inline with the 3-5 years growth rate achieved in other benchmark countries such as such as UAE (79%), Qatar (82%) and
Germany (83%)
2019142-382 | Confidential Source: Analysys Mason, Telegeography, Euromonitor, TRA

Muscat contributes to 45% of total broadband connections and has a high

household penetration of 93%
Total fixed broadband subscribers and total fixed broadband HH penetration by Governorates (‘000, %, 2Q2019)
93%
Total broadband penetration
84%
in Muscat is high
203 77%
75%
73%
Average penetration in Oman
71%
60% Average penetration in outside Muscat
56% 59%
50%
48%
Muscat has ~45% of
the total broadband
connections
74 27%
18%
36 35
28
15 14 12 8 5 3
Muscat Al Batinah Dhofar Ad Dakhliyah Ash Sharqiyah Al Batinah Adh Dhahirah Al Buraymi Ash Sharqiyah Musandam Al Wusta
North North South South
The top 5 governorates account for ~85% of FBB

FBB HH penetration Total FBB connections
connections
Note: The numbers don’t add up to 448k (which is the total FBB connection in 2Q 2019) as ~16k connections are unspecified
2019142-382 | Confidential Source: TRA, Analysys Mason
In terms of future growth, governorates outside Muscat are expected to grow at a

higher rate than Muscat which already has a high household penetration
Split of fixed broadband connections inside and outside Muscat
(‘000) CAGR
Forecast
(2019-23)
6% 607
584
556 ▪ As Muscat has already a high FBB HH penetration (93% in
521 2Q2019) the growth rate in Muscat is lower than outside
477 Muscat
448
352 8% ▪ Outside Muscat, FBB penetration is 59% and there is more
318
337 (58%) opportunity of net addition
293
245 261 ▪ Among Governorates outside Muscat, there is a higher
(55%) potential for governorates which are currently as low
broadband penetration such as Ad Dakhliyah (56%) , Dhofar
(60%), Al Batinah South (27%)
254 4%
203 227 237 246 (42%)
216
(45%)
2Q2019 2019 2020 2021 2022 2023
Muscat Outside Muscat X% CAGR
2019142-382 | Confidential Source: Analysys Mason, TRA

FTTH adoption is likely to grow rapidly and contribute to about 55% of total fixed
broadband connections by 2023
Fixed broadband connections by technology (‘000s)
CAGR
Forecast (2018-23) ▪ FTTH is expected to lead the growth in fixed
broadband market in the country, growing at a CAGR
+8% 607 of 31% over 2018-23
584
556 ▪ The share of FTTH is expected to rise from 20% in
521
2018 to 55% in 2023 and the share of ADSL
477
technology is expected to fall from 49% in 2018 to
220 278 331
422 169 (55%) 31%
22% in 2023
+24% 114
84
349 (20%)
▪ 331k FTTH connections in 2023 implies a 56% take
up on homes passed on OB fibre (details in next
285
131 159 slides)
162
233 (31%) 162
152 142 ▪ From supply perspective, OB is increasing its roll-out
177 2%
4%
(23%) and all three players are offering affordable FTTH
32% entry level plans which are comparable in terms of
207
(49%)
204 190 173 pricing with DSL and FWA offerings
154 133
64% (22%) -8%
▪ From demand perspective, the growth of FTTH is
driven by increasing high bandwidth requirement and
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
growing data consumption for data heavy
ADSL FWA FTTH X% CAGR applications as IPTV, gaming and 4k videos and
increased affordability
2019142-382 | Confidential Source: NCSI, TRA, Analysys Mason

FTTH connections in 2023 are estimated based on bottom up analysis of expected

homes passed and take-rate of FTTH in Muscat and outside Muscat
Estimation of homes based Description 2023 (‘000)
Total OB homes passed ▪ Based on roll-out plan of OB including vacant tags 632
▪ Based on roll-out plan of OB after removing vacant tags

Non-vacant OB homes passed 530
▪ Around 16% of the total premise passed are expected to be vacant
Take rate on OB network

▪ Number of connected FTTH connections to homes passed on OB 56%
network (Muscat 70%, Outside-Muscat 37%)
Number of FTTH connections on ▪ FTTH connections connected on OB network is estimated based on

298
OB take-up rate
Number of FTTH connections on ▪ Currently 16% of FTTH connections are on Omantel network which is
33
Omantel likely to fall to 10% as OB is aggressively deploying fibre
Total FTTH connections in Oman ▪ Total FTTH connection is sum of connections on OB and Omantel 331
Take rate is estimated based on take rate in Muscat and outside Muscat based on global benchmarks
2019142-382 | Confidential Source: Analysys Mason, OB, Awasr

FTTH take-up in Oman is benchmarked with global markets and is expected to be

56% (blended); take-up in Muscat is expected to be higher than outside Muscat
Comparison of take-up rate1 in Oman v/s global benchmarks of take-up rate (2019)
In developed countries with intensive Fibre Take up is Muscat is expect to get

network penetration can be above 70% in line with developed markets by
2023
83%
Take-up rate evolves over
74% 74% the years after start of roll-
72% Blended take-up on homes passed
70% out – assumed to be same
in Oman is expected to increase to
as current take-up rate in
56% by 2023
Muscat, where fibre has
57% 56% been rolled out for >4
50% years
43%
39%
37%
34% 33%
26%
Singapore Sweden UAE Hong_Kong Oman NZ Oman Denmark South France Oman Germany Oman UK
Muscat 2023 Africa outside current
Muscat
Note: 1 Take-up rate = Number of FTTH connections/Number of premise passed

2019142-382 | Confidential Source: Telegeography, OB roll-out plan, Awasr Business plan
From supply perspective, the expansion of OB’s FTTH footprint and competitive
pricing provide an opportunity for the market to migrate away from ADSL/FWA
Illustrative map of FTTH network expansion by OB Entry-level fixed broadband pricing in Oman (OMR/month)
30
29
25 25
OB network roll-out plan in

Muscat, Salalah, Nizwa, Ibri,
Sohar, Quriyat, Sur and other
OB has a planned
areas on northern coast
expansion in Salalah
Awasr entry- Omantel entry- Ooredoo FWA Omantel ADSL

level FTTH plan level FTTH (20 plan (10 Mbps) (10 Mbps)
(20 Mbps) Mbps)
Ready for service In progress Will be released soon Future ▪ As coverage expands, migration to FTTH is expected to be quick given
that entry-level FTTH plans are very competitively priced with only a
▪ OB has ambitious coverage expansion plans, aiming to: relatively small premium over pricing of slower ADSL and FWA offerings
− expand coverage to 85% of households in Muscat by end of 2019 ▪ Coverage expansion and competitive pricing provides an opportunity for
− expand to 50% areas by 2020 and 95% penetration of urban areas strong growth if positioned well against Omantel and Ooredoo
by 2030
▪ Awasr’s addressable market will continue to increase as OB continues to
expand its fibre coverage
OB’s network roll-out plans will continue to increase the addressable market for FTTH providers
2019142-382 | Confidential Source: OB, Analysys Mason Research, FTTH Council MENA, Times of Oman
From demand perspective, bandwidth on ADSL and LTE FWA network is less than
18Mbit/s, while is not sufficient to support HD TV and other emerging applications
Unit band of
stream Some Kbit/s 320Kbit/s 1–2Mbit/s 6–8Mbit/s 15–25Mbit/s 30–80Mbit/s 50–600Mbit/s 0.1–2Gbit/s
Examples of Internet Augmented

services Music SD TV HD TV 4K TV 8K TV Virtual reality
navigation reality
Bands required by stream type
1 Some Kbit/s 320Kbit/s 1–2Mbit/s 6–8Mbit/s 15–25Mbit/s 30–80Mbit/s 50–600Mbit/s 0.1–2Gbit/s

Number of simultaneous streams per
2 Some Kbit/s 640Kbit/s 2–4Mbit/s 12–16Mbit/s 30–50Mbit/s 60–160Mbit/s 0.1–1.2Gbit/s 0.2–4Gbit/s

household
5 Some Kbit/s 1600Kbit/s 5–10Mbit/s 30–40Mbit/s 75–125Mbit/s 150–400Mbit/s 0.25–3Gbit/s 0.5–10Gbit/s
ADSL/ LTE FWA sufficient ADSL/ LTE FWA sufficient ADSL sufficient for only FTTC/ FTTH Required bandwidth for
for almost all the for around half of the part of the population G.fast necessary virtual or augmented reality
highly depends on the
population population necessary
offered resolution
The sufficiency of broadband access technology is based on the theoretical headline speeds – this could vary significantly if the quality of copper is poor
and/or the user is in a remote area
2019142-382 | Confidential Source: Analysys Mason

While FTTH is expected to grow, DSL and FWA will remain relevant in areas where
fibre coverage is not feasible
Coverage of passive fixed infrastructure operators, by households Topographic map of Oman
(2018)
1 Musandam P
Integrated operators, comprises m
Omantel and Ooredoo are 1 mountains fo
Incumbent Omantel using their 4G cell sites to tip of the Al H
is the only operator provide FWA service 2 Batinah coas
with ADSL. fertile coasta
94%
90% 88%
2 Gulf of Oma
Mountains. T
with Muscat,
3
OB deployed mainly in of Oman’s p
Muscat (65% of 3 Muscat – Al
deployment), and Dhofar long, barren
4 bounded by
the Gulf of O
Omantel has its ~50% by little habi
Seeb, Musca
own FTTH
deployment in 4 Oman centra
Muscat and a few southwest o
Mountains, c
other major cities
desert-like la
unknown Rub' Al Khal
5 Dhofar regio
coastal, mou
5 desert areas
ADSL FWA FTTH habitable are
climate durin
Omantel Ooredoo OB
▪ OB has planned to expand to 95% penetration of urban ▪ In some areas, due to difficult terrain, such as Musandam
areas by 2030, meanwhile FWA and DSL will be relevant Peninsula (1) and Oman central and southwest area (4),
deploying fibre may not make business sense and in such
areas FWA would remain important
2019142-382 | Confidential Source: NCSI, World Atlas, Analysys Mason

Omantel is upgrading its ADSL network to G.fast (a high-speed broadband

technology); this upgrade is expected to be mainly in non-fibre coverage region
Performance of access technologies for different lengths of local loop
FTTH ▪ Omantel announced in July 2017 its plans upgrade it ADSL

>
1000 network by rolling out G.fast to high value parts of its
network
Fibre provides ultra-fast
broadband which is not
700 distance related (no loss of ▪ G.fast is expected to allow Omantel to offer peak speed of
performance due to distance) 500Mbit/s–700Mbit/s at peak downlink speeds1, which will
provide a better broadband quality compared to the existing
ADSL service
G.fast G.fast technologies increase
Speed (Mbit/s)
performance by reducing cross-talk ▪ We do not expect Omantel to deploy G.fast in areas where
across copper pairs
Performance falls sharply as loop FTTH is already present, as FTTH is a superior access
length increases technology over G.fast. G.fast’s performance (speed,
reliability) is subject to the length of the local loop and the
quality of legacy copper infrastructure
Due to the characteristics of copper
lines (length, wire diameter), quality of Illustrations of G.fast/ FTTdp network
service varies according to the length
of the copper loop
18
ADSL+
ADSL
7
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Length of copper local loop (km)
Note1: Peak speeds vary by loop length for G.fast

The total fixed broadband demand is further evaluated based on residential and
enterprise demand
Total fixed broadband market
Residential fixed broadband market Enterprise fixed broadband market
Large
SMEs
enterprise

enterprise demand
Large
SMEs
enterprise

Residential FBB customer base in 2018 stands at 393k (63% of total HHs) which is
expected to grow to 561k (79% of total HHs) by 2023, growing at a CAGR of 7%
Fixed broadband residential connections forecast (‘000) and
household penetration rate (%) ▪ In the first half of 2019, the Omani market added
+7%
~24k residential subscribers. We expect strong growth
79% to sustain into the second half of the year to reach
78%
76% ~443k subscribers by the end of 2019.
73%
69% ▪ By 2023, we expect that ~80% of households to have
63% a broadband connection
+25%
541
561 ▪ Key drivers of fixed broadband household take-up
55%
515 include:
483
45% 443 – From supply side, availability of network and
affordable plans from operators
393
37% – From demand perspective, the growth is driven
322 by increasing high bandwidth requirement and
28%
260 growing data consumption for data heavy
211 applications as IPTV, gaming and 4k videos
159 – Demand for residential broadband is also
increasing due to increasing affordability of
services as prices are dropping and income
level is increasing
– Increasing digital education: Government’s
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
promotions and subsidies to increase local
citizens’ internet usage
HH penetration % Total residential X% CAGR
Note: 1. Detailed split by technology is presented in upcoming slides

FTTH adoption is likely to grow rapidly contributing to about 55% of the residential
connections by 2023
Residential fixed broadband connections by technology (‘000s)
CAGR
▪ FTTH is expected to lead the growth in
Forecast
(2018-23) residential fixed broadband market in the
+7% country, growing at a CAGR of 31% over
561
541 2018-23
515
483 ▪ The share of FTTH is expected to rise from
443 20% in 2018 to 55% in 2023 and the
31%
393 207 260 309 share of ADSL technology is expected to
158 (55%)
+25% 107 fall from 49% in 2018 to 22% in 2023
80
322 (20%)
260 120 146

(30%) 149
211 149 2%
140 131
159 (23%)
4%
31%
193
189 176
(48%) 160 122
141 -9%
63% (22%)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
ADSL FWA FTTH X% CAGR

Though ARPU has been decreasing, residential revenue is expected to increase at 8%

CAGR to reach OMR169 million by 2023, driven by FTTH revenue growth
ARPU of residential broadband connections (OMR/month) Revenue from residential broadband connections (OMR million)
Forecast Forecast
-2.9%
-1.1%
+8%
30.7 30.2 29.8 169
29.5 29.3 29.1 163
156
29.6 146
29.0 28.3 133
27.5 27.0 26.6 +20%
26.2 26.0 25.8 25.6 99
116 48 65 82
24 34 (59%)
96
(20%)
80
66
55
92 99 98 91 81 70
(80%)
(41%)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Blended ARPU FTTH ARPU X% CAGR Total FWA and ADSL FTTH
▪ ARPU of residential connections is forecasted to decrease, ▪ The total residential revenue is expected to increase to OMR169
however the rate of decrease is expected to decline as million by 2023 growing at a CAGR of 8%
subscribers migrate to higher speed and data plans
▪ The growth rate of revenues declining as growth rate of increase
▪ ARPU is typically decreases as seen in global markets such as in connections reduces as market gets mature
UAE (-2%), Saudi Arabia (-1%), France (-5%)
▪ Share of FTTH revenue is expected to grow from 20% to 59% by
▪ FTTH ARPU is expected to be ~15% higher than blended market 2023
ARPU as price of entry level FTTH plans is higher

enterprise demand
Large
SMEs
enterprise

The number of enterprises in Oman is expected to grow at a CAGR of 2% over 2018-

23; SMEs form a major proportion of the enterprises
Number of enterprises in Oman by enterprise size 1 Distribution of enterprises in Oman by governorate (%)
Forecast
Muscat 34%
+2%
177,098 180,640 North Al Batinah 16%
169,525 173,430
165,202 885 903
160,187 848 867
801 826
Dhofar 12%
A’Dakhiliyah 8%
168,677 172,563 176,213 179,737

159,386 164,376 North A’Sharqiyah 8%
South Al Batinah 7%
The top 5 governorates
account for >75% of
South A’Sharqiyah 6%
the number of
2018 2019 2020 2021 2022 2023 enterprises
A’Dhahirah 4%
SMEs Large enterprises X% CAGR (2018-2023)
Al Buraimi 3%
▪ SMEs form a major proportion of the total enterprises in Oman
▪ The number of SMEs are expected to continue growing, driven Al Wusta 1%
by the Government’s clear policy focus on SME development,
new funding programs and incubation support Musandam 1%
Note: 1. SMEs are defined as enterprises with 1-99 employees; large enterprises are defined as enterprises with >99 employees
SMEs include micro enterprises as well
2019142-382 | Confidential Source: Times of Oman, Analysys Mason Research
The enterprise fixed broadband connections are expected to grow, majorly driven by
the rise in FTTH connections among enterprises in the country
Enterprise fixed broadband connections (‘000s) and penetration (%) Enterprise fixed broadband connections by technology (‘000s)
Enterprise fixed broadband connections (’000s)
ADSL FWA FTTH CAGR
Penetration (%) X% CAGR (2018-2023) (2018-23)
Forecast 45
43
Forecast +9% 25% 41
24%
23% 37
22%
20% 34 14 18 22
10 39%
29 7 (34%) (41%) (49%)
18% (27%)
4 (21%)
(14%)
12 13 13
11 12
45 (37%) (35%) (32%) 11
41 43 (38%) (29%) 0.2%
37 (25%)
34
29
14 14 14 14 13 12
(47%) (43%) (38%) (34%) (30%) (26%) -3%
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
▪ Currently, fixed broadband enterprise penetration is low in ▪ FTTH is expected to lead the enterprise fixed broadband
the market market in the country by 2023, growing at a CAGR of 39%
▪ Going forward, fixed BB penetration amongst enterprises is over 2018-23
expected to increase from 18% in 2018 to 25% in 2023 ▪ The share of ADSL technology is expected to fall from 47% in
2018 to 26% in 2023
2019142-382 | Confidential Source: Analysys Mason Research

Consequently, revenue from fixed enterprise market is expected to grow at a CAGR

of 3% over 2018-23, majorly driven by revenue from large enterprises
Fixed enterprise market revenue for operators in Oman, by size of
enterprise (OMR million)
▪ In 2018, large enterprises formed a majority share
CAGR
Forecast (57%) of total enterprise revenue in the fixed
(2018-23)
+3% services market in Oman. This share is expected to
125 126
123 grow to 58% by 2023
119
114
109 − Large enterprises typically subscribe to high
ARPU products such as dedicated leased lines,
71 73 74 4% leading to higher revenue share as compared to
69 (58%)
66 (58%) (58%) SMEs
62 (58%)
(57%)
(57%)
▪ Even going forward, revenue from large enterprises
is expected to grow at a higher rate as compared to
that from SMEs, driven by the adoption of high
ARPU services such as cloud and security services
48 49 51 52 53 53
(43%) (43%) (42%) (42%) (42%) (42%)
2%
2018 2019 2020 2021 2022 2023
SMEs Large enterprises X% CAGR (2018-2023)
There is a significant potential for growth in the fixed enterprise market.

The enterprise services market, relevant for fixed operators, can be split into
connectivity services and non-connectivity services
Enterprise fixed services
1 2
Connectivity services Non-connectivity services
Fixed voice Unified Communications
Fixed broadband Public/private cloud
Dedicated connections (including

Security
managed services)
Co-location and hosting
Others1
Note: 1. Includes enterprise mobility and desktop management

1 Dedicated connections form the biggest share of enterprise fixed market revenue;
however, majority of the growth is expected to come from non-connectivity services
Enterprise fixed market revenue for operators by product 1 in Enterprise fixed market revenue for operators by
Oman (OMR million) product (%), 2023
Forecast CAGR (2018-23)

+3%
100% = OMR126 million
123 125 126
119
114 14 15 9% 12%
109 12 14
11
10 16 17 17
14 15 5%
13
13 13 12 12 13%
13
Connectivity services
14 -3%
9%
79 81 82 82 65%
73 76
3%
2018 2019 2020 2021 2022 2023
Dedicated connections2 Fixed voice Fixed broadband Non-connectivity services3 X% CAGR (2018-2023)
▪ Revenue from dedicated connections forms the biggest share of operators’ revenue (~66%) in the enterprise fixed market in Oman
▪ Non-connectivity services is expected to drive the majority of the growth (CAGR of 9%) in the market, driven by growth in the security,
private cloud and co-location and hosting services in the Oman enterprise market
▪ Revenue from fixed broadband services is expected to grow at a CAGR of 5% over 2018-23, mainly driven by the growth in the number
of connections
Note: 1. Does not include enterprise revenue from fixed IoT services as it forms a very small proportion of total market
2. Includes managed services for dedicated connections; 3. Includes services such as unified communications, SaaS,
PaaS, IaaS, security services, private cloud, co-location and hosting, enterprise mobility and desktop management
1 Apart from revenue from dedicated connections, fixed BB is a major contributor for
SMEs and non-connectivity services is a major contributor for large enterprises
SME fixed market revenue for operators by product 1 (%), 2023 Large enterprise fixed market revenue for operators by product 1
(%), 2023
100% = OMR53 million 100% = OMR74 million
4%
18%
30% 1%
4%
49%
77%
17%
Dedicated connections2 Fixed voice Fixed broadband Non-connectivity services3
▪ For SMEs, apart from dedicated connections, fixed ▪ For large enterprises, apart from dedicated connections,
broadband and voice services are expected to form a major non-connectivity services are expected to form a major
proportion of operator revenue in 2023 proportion of operator revenue in 2023
2. Includes managed services for dedicated connections; 3. Includes services such as unified communications, SaaS,
PaaS, IaaS, security services, private cloud, co-location and hosting, enterprise mobility and desktop management
2 The market for non-connectivity services is expected to grow with the increasing
adoption of private cloud and security services among enterprises
Non-connectivity services revenue for operators by category in Non-connectivity services revenue for operators by
Oman (OMR million) category (%), 2023
CAGR
Forecast (2018-23)
2%
15.2 3%
14.5 0.3 11%
+9%
13.6 0.3
0.3 37%
12.5 42%
0.3 5.6
11.1 7%
5.6
0.2
9.8 5.3
0.2 5.0
4.5 12%
2.4 16%
4.0 2.3
2.1 ▪ Co-location and hosting, public/private cloud and
1.9
1.7 security are expected to be the largest services in
10%
1.4 terms of revenue for telecoms operators in Oman
in 2023
6.0 6.5
5.0 5.5
4.5 Unified communications Others1
4.0 12%
Public/private cloud X% CAGR (2018-2023)
Security
0.2 0.2 0.3 0.3 0.3
0.4
2018 2019 2020 2021 2022 2023
Note: 1. Includes enterprise mobility and desktop management

2 Security and public/private cloud are expected to be the largest contributor of revenue
from SMEs vis-à-vis public/private cloud and co-location & hosting for large enterprises
SME non-connectivity services revenue for operators by category Large enterprise non-connectivity services revenue for operators
(%), 2023 by category (%), 2023
100% = OMR2 million 100% = OMR13 million
4% 2%
5% 12%
2%
19% 37%
40%
44%
35%
Security Co-location and hosting Others

Public/private cloud Unified communications
▪ For SMEs, security services and public/private cloud ▪ For large enterprises, public/private cloud and co-location
services are expected to form a major proportion of operator and hosting are expected to form a major proportion of
revenue in 2023 operator revenue in 2023


Understanding Awasr
Next steps
Annexure
Oman fixed broadband market overview – Supply side 42
Fibre broadband is offered by all operators based on their own network or over OB’s
network, with Omantel leading in overall broadband market share
Coverage Subscribers
Operator Technology Notes
(% homes passed) (2Q 2019)
ADSL: ~90% ADSL: ~ 207,000 ▪ Integrated operator with a 7500km fibre-optic backbone
FWA: 12,000 across Oman but uses OB’s passive fibre infrastructure
ADSL2+ (up to 18Mbit/s) FWA: ~93% to provide FTTH services in part of Muscat
FTTH: ~46,000
FTTH (up to 200Mbit/s) FTTx: Unknown (has own (~60% sub. share of ▪ To cover high-value areas in and outside Muscat with
deployment in Muscat and BB market, ~48% FTTH/G.fast and rural and remote areas with ADSL, WiLL
a few other major cities) share of FTTH market) and VSAT
FWA: ~ 133,000 ▪ Integrated operator with a 5500 km fibre-optic

LTE FWA (up to FWA: ~88% FTTH: ~22,000 backbone across Oman used largely for cell-site
10Mbit/s) FTTH: largely based on OB (~34% sub. share of backhaul
FTTH/B (up to 1Gbit/s) coverage BB market, 23% share ▪ Predominantly use OB’s passive fibre infrastructure to
of FTTH market) provide FTTH services
▪ Launched in 2016; positioned as a premium fibre-only

FTTH: 29,100 service provider in terms of access speeds
FTTH (up to 1Gbit/s)
FTTH: based on OB (~6.5% sub. share of ▪ Awasr offers services over OB’s network in Muscat,
coverage BB market, 30% share Salalah and Jebel Akhdar
of FTTH market) ▪ Awasr has increased its market share within FTTH
connections to capture 30% market share
▪ OB is licensed as a passive fixed broadband
infrastructure operator and owns, operates and
NIL maintains all of the passive fibre-based network
FTTH (up to 1Gbit/s) FTTH: 46% infrastructure across Muscat and Dhofar governates
(passive only operator)
▪ Wholesale agreements with Omantel, Ooredoo Oman
and Awasr
2019142-382 | Confidential Sources: Operators’ financial reports, TeleGeography, Analysys Mason

Although Ooredoo and Awasr have been chipping away market share from Omantel,
Omantel is still the dominant player with ~60% of the fixed broadband market
Total broadband subscribers (‘000) and subscriber share by operator (%)
177 233 285 349 422 448

1.3% 3.5% ▪ Omantel’s fixed broadband subscribers have grown at a CAGR
5.9% 6.5%
of 18% over the last five years. However it has lost market
31.7% 30.0% 30.9% share to both Ooredoo and Awasr
33.7%
34.7% 34.5% ▪ Ooredoo has focused on fixed BB expansion over the past
three years, attracting new customers by providing FTTH
access (via OB’s network) and free upgrades and data rollover
for its FWA subscribers. Its subscriber base increased at 24%
CAGR over the last 5 years
▪ Awasr has managed to acquire 6.5% of FBB subscribers in its
68.3% 70.0% 67.8% three and half years of operations, attracting customers with
62.8% 59.4% 59.0% its premium high-speed offerings at affordable price
2014 2015 2016 2017 2018 2Q2019
Omantel Ooredoo Awasr
2019142-382 | Confidential Sources: Operators’ financial reports, TeleGeography

Competition within the FTTH segment is intensive with all three operators having at
least 20% share of the market; Awasr’s market share on OB’s network is 35%
Total FTTH subscribers (‘000) and share by operator (%) FTTH subscriber share on OB network (%)
33 97 12 84
11%
30% 33% 35%
20%
23%
26%
57%
69%
47%
39%
10%
2016 2Q2019 2016 2Q2019
▪ Awasr launched its operation in 2016 and has quickly gained a ▪ As Ooredoo and Awasr don’t have their own fibre network, their
fair market share of 30% mainly from Omantel total FTTH customers are on OB while Omantel’s subscriber
▪ Omantel’s FTTH subscribers have grown from ~23k in 2016 to are split between OB and its own fibre network
reach ~46k in 2Q2019 ▪ Within OB network, Awasr has a fair market share of ~35%
given focus on FTTH
▪ Ooredoo’s FTTHs subscribers have grown from ~7k in 2016 to
reach ~22k in 2Q2019
▪ Awasr has grown to reach ~29k as of 2Q2019. It is currently
the second largest player in the FTTH market with ~30%
market share
2019142-382 | Confidential Sources: Operators’ financial reports, TeleGeography

In the following section we will analyse operators’ positioning in the residential and
enterprise market
Large
SMEs
enterprise

In the following section we will analyse operators’ positioning in the residential and
enterprise market
Large
SMEs
enterprise

Omantel is the leading player in the residential FBB market with a subscriber share of
58% in 2Q2019; however Awasr has 30% market share of FTTH connections
Residential fixed broadband subscriber market share (%) Residential FTTH subscriber market share (%)
159 211 260 322 393 417 32 49 80 92
1% 4% 6% 7% 11%
24%
34% 32% 30% 30%
32%
35%
36% 36%
89%
76%
66% 68% 66% 70% 70%
61% 58% 58%
2014 2015 2016 2017 2018 2Q2019 2016 2017 2018 2Q2019
Omantel Ooredoo Awasr Awasr Ooredoo and Omantel
▪ Omantel has the leading market share in the residential fixed ▪ Awasr has gained 30% market share of FTTH connections in
broadband market, offering DSL, FTTH and FWA services to Oman since its launch in 2016
enterprise customers
▪ However, Ooredoo and Awasr have been gaining market share
from Omantel over the last five years
2019142-382 | Confidential Source: Analysys Mason, Awasr, Operators’ financial reports

In terms of FTTH offerings, all three operators offer IPTV/OTT, both Omantel and
Ooredoo offer a variety of add-ons, but no operator offers quad-play
Overview of FTTH packages offered by major fixed broadband operators in Oman
Bundles
Min. and max.
BB + BB +
Operator BB Notes speed available Add-on packages or promotions
voice TV
(Mbit/s)
▪ Free unlimited on-net calls; limited free fixed line minutes and
discount on international calls, quantum based on package selected
20 ▪ Double play (BB + voice), and triple play (BB + voice + TV) packages
Triple play
available. Four TV packs from OSN: OSN Get Started, OSN Ultimate
   bundles
Entertainment , OSN Movies & Ultimate Movies
available
200 ▪ Numerous add-on packages: Free anti-virus and anti-spam software,
and free mailbox, unlimited on-net calls to selected Omantel mobile
subscribers, Omantel TV on the go for Omantel mobile subscribers
▪ Free unlimited on-net calls, modem and installation on contract
20
packages; discount on all international calls
Triple play ▪ Ooredoo IPTV available as an add on with two packages to choose
   bundles from: Asian (predominantly Indian content) and Family (international
available 1,000 content)
▪ Other add-on packages: Speed boosts, Mesh Wi-Fi, Ooredoo TV-on-
the-go for Ooredoo mobile subscribers
20 ▪ IPTV/OTT, Jawwy TV, offered with higher tier BB packages, providing

Arabic and English content, live and on-demand
Voice not
▪ Other add-on packages: Speed boosts
  yet
available 1,000
Awasr is expected to start offering voice within the next few months
2019142-382 | Confidential Source: TeleGeography and operators’ websites

On the dimension of speed and prices, Awasr’s products (up to 100 Mbit/s
category) are competitive; however, Awasr is currently not offering fixed voice
Product positioning map in Oman residential broadband (up to 100 Mbit/s)
120
Omantel ADSL Ooredoo FWA
Omantel FTTH Ooredoo FTTH
Omantel FWA Awasr FTTH
100
▪ FTTH entry level product prices are

competitive with DSL offerings of
80 Omantel and better positioned than
FWA offerings
▪ Further, within FTTH, Awasr is 3
Price (OMR)
competitive in terms of price

60
2
100/50
1
40
50/40
40/34
20/29
Disregarding voice
20 Disregarding voice offerings, offerings, Awasr has the
Awasr is well-positioned best plan
0
0 10 20 30 40 50 60 70 80 90 100 110
Speed (Mbit/s)
2019142-382 | Confidential Source: Company website

Similarly in the >100Mbit/s category, Awasr’s products are competitive in terms of

speed and price
Product positioning map in Oman residential broadband (above 100 Mbit/s)
260
Omantel FTTH
240 5
Ooredoo FTTH
220 Awasr FTTH
200
180
160 1,000/149
Price (OMR)
140
120
In 1Gbit/s speed offering
100 Awasr’s product Is well
4 positioned
80
300/85
150/70
60
Awasr has an offering in
40 different speeds and price
range inline with market
20
0
100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1,000 1,050
Speed (Mbit/s)

1
In terms of entry level FTTH packages, Awasr is price competitive; but it falls behind
in terms of bundled offerings, particularly due to a lack of fixed voice
Speed Prices Fixed

Operator Contract Content/TV Other services/VAS
(Mbit/s) (OMR) voice
Free antivirus and anti-spam software,
12 and 7 free mailbox
20 30
months ✓ X Additional OMR2 for calls to 5 Omantel
mobile numbers for free
Free antivirus and anti-spam software,
12 ✓ Omantel TV+ and 7 free mailbox

Additional OMR2 for calls to 5 Omantel
20 35
months ✓ 150+ channels 2500+ movies and mobile numbers for free
TV Series Additional OMR2 for Omantel TV+ app for
Omantel mobile subscribers
12 ✓ IPTV available at additional 2x Mesh Wi-Fi - at OMR20 (upfront) and

20 28
months ✓ OMR4 + one time set-top box fee of OMR7 for next 12mth (total OMR104)
OMR24 (Ooredoo TV)
No ✓ IPTV available at additional

20 35
contract ✓ OMR6 + one time set-top box fee of -
OMR24 (Ooredoo TV)
TV is not offered at the
12 basic entry level offer -
20 29
months x x even as an add-on
Awasr can consider offering Jawwy TV as an add-on bundle at the entry level for an additional fee. This option is currently missing as
compared to Ooredoo and Omantel’s offerings

2
In the speed range of 40-60 Mbit/s, Awasr’s 50Mbit/s plan with Jawwy TV is a well
positioned bundle in terms of speed, price and content/TV
Speed Prices Fixed

Free antivirus and anti-spam software, and
12
40 35
months ✓ X 7 free mailbox; Additional OMR2 for calls to
5 Omantel mobile numbers for free
12 ✓ Omantel TV+ 7 free mailbox; Additional OMR2 for calls to
40 39
months ✓ 150+ channels 2500+ movies and TV 5 Omantel mobile numbers for free;
Additional OMR2 for Omantel TV+ app for
Series
40 12 ✓ IPTV available at additional OMR4 + 2x Mesh wifi - at OMR20 (upfront) and

(double)
35
months ✓ one time set-top box fee of OMR24 OMR7 for next 12mth (total OMR104)
(Ooredoo TV)
No ✓ IPTV available at additional OMR6 +

50 55
contract ✓ one time set-top box fee of OMR24
-
(Ooredoo TV)
12 ✓ IPTV available at additional OMR4 + 2x Mesh wifi - at OMR20 (upfront) and

60 45
months ✓ one time set-top box fee of OMR24 OMR7 for next 12mth (total OMR104)
(Ooredoo TV)
40 12
(double)
34
months x x Disregarding voice offerings,
-
Awasr has a well positioned
bundle in terms of speed,
12
50 40
months x ✓ Jawwy TV price and content/TV
-

3
In the speed range of 80-100 Mbit/s, Awasr’s 100Mbit/s (double speed) plan with
Jawwy TV is the best positioned bundle in terms of speed, price and content/TV
Speed Prices Fixed

12
80 45

80 49
Series
80 12 ✓ IPTV available at additional OMR4 2x Mesh wifi - at OMR20 (upfront) and

(double)
48
months ✓ + one time set-top box fee of OMR24 OMR7 for next 12mth (total OMR104)
(Ooredoo TV)
No ✓ IPTV available at additional OMR6

100 75
contract ✓ + one time set-top box fee of OMR24 -
(Ooredoo TV)
12 ✓ IPTV available at additional OMR4 2x Mesh wifi - at OMR20 (upfront) and

100 68
(Ooredoo TV)
Disregarding voice offerings, Awasr has a
100 12 well positioned bundle in- terms of speed,
(Double)
50
months x ✓ Jawwy TV price and content/TV

4
In the speed range of >100 Mbit/s, Awasr’s 300Mbit/s (Double your speed) and
5
1Gibit/s plans with Jawwy TV are the best positioned bundles
Speed Prices Fixed

12
200 80
200 89
Series
300 88
12 ✓ IPTV available at additional OMR4 2x Mesh wifi - at OMR20 (upfront) and
1000 150 (Ooredoo TV)
300 100
No ✓ IPTV available at additional OMR6
contract ✓ + one time set-top box fee of OMR24 -
1000 250 (Ooredoo TV)
12
150 70
months x ✓ Jawwy TV -
300 12
(double)
85
months x ✓ Jawwy TV Disregarding voice offerings,
it is the most well positioned
12 bundled in terms of speed,
1000 149
months x ✓ Jawwy TV -
price and TV offerings

In terms of content, Ooredoo differentiates itself by offering South Asian content;

both Omantel and Ooredoo also offer value added services
Comparison of content and value added services offered by operators in Oman market
150+ channels 100+ channels, 100+ Live TV channels,

2500+ movies and Asian bundles, and Western, Arabic, Kids,
TV series Kids entertainment Turkish movies/series
Content /TV
OSN offers a variety of content from

major networks and studios Warner
Bros., Paramount, HBO, Fox, Disney,
Sony, Zee Network, Metro-Goldwyn- Ooredoo differentiates positions itself Awasr offers OSN get started pack,
Mayer, Universal, ESPN and to offer South Asian content and FOX and MBC channels along with
DreamWorks bundles VOD
Omantel offers VAS services:

Value added - free antivirus and anti-spam software,
▪ free mailbox Ooredoo offers VAS services such as
Awasr currently does not offer VAS
services 2x Mesh Wi-Fi
▪ Omantel TV+ App
▪ Free call on 5-9 Omantel number
2019142-382 | Confidential Source: Company website, Analysys Mason

To summarise, Awasr is price competitive across its product offerings, but lacks in
terms of bundling in the entry level pack and VAS across all packs
Summary of comparison of residential product offerings – Awasr vs. competitors
Simplified and
▪ Awasr has a simplified portfolio – easy to understand and directly related to the users
needs
competitive portfolio
▪ All of its product offerings are competitive in terms of price
▪ Though fixed voice service is commoditised and does not generate additional revenue, it is
Offer fixed voice helpful in making the plans comparable with competitors (as perceived value to the
customer) and increase stickiness (due to association with a fixed number)
Offer Jawwy TV with ▪ Jawwy TV could be offered as an add-on for a fee at the entry level to make the entry level
entry level pack and product offering fully comparable with the competitors
add other content ▪ Also, add more variety of content to target larger audience
Add VAS to the ▪ Awasr could look to add some value added services to ensure its product offerings are
product offerings perceived as high value offerings compared to the competitors
Potential to increase
▪ Once Awasr is able to make its product offerings especially the entry level plan fully
comparable (e.g., after adding voice and content), it could look to refresh its product
ARPU
portfolio by increasing the prices marginally
In the following section, we will analyse operators position in the residential and
enterprise market
Large
SMEs
enterprise

Omantel is the dominant player in the fixed enterprise market with a market share
of 76% in Q2 2019; however, its market share has been declining
Enterprise fixed broadband market share (%) In FTTH enterprise
market, Awasr has 20-
25% share of subscribers
0% 0% 1% 2% 4% 4%
11% 14%
17%
19%
20% 20% ▪ Omantel has a dominant market share in the enterprise
fixed broadband market, offering DSL, FTTH and FWA
services to enterprise customers
▪ However, Ooredoo and Awasr have been gaining market
share from Omantel over the last five years
89% 86%
82% 79% 76% 76%
2014 2015 2016 2017 2018 Q2 2019
2019142-382 | Confidential Source: Analysys Mason, Awasr, Operators’ financial reports

Omantel and Ooredoo offer a range of enterprise services across mobile and fixed
connectivity and non-connectivity; Awasr’s portfolio is limited to fixed connectivity
Enterprise services offered by operators in Oman
1 Mobile services 2 Fixed services - connectivity 3 Non-connectivity services 4 IoT

Operator
Dedicated Co-location & Public Unified
BB Voice BB Voice Security IoT
connections hosting cloud Comm.
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓
2019142-382 | Confidential Source: Operator websites

1
Within mobile services, both Omantel and Ooredoo have enterprise-specific data
and voice plans; Ooredoo offers bulk messaging as well
Enterprise services offered by operators in Oman – Mobile services
Mobile services
Operator
Broadband Voice Bulk messaging
▪ Download speeds of up to 7.2 Mbps with ▪ Postpaid mobile voice plans bundled with SMS
unlimited data volume and data – ranging from OMR5 per month for
300 Corporate Private Network (CPN) minutes to
▪ Base monthly tariff ranging from OMR0.25 – ▪ N/A
OMR100 per month for unlimited CPN minutes
OMR2, varying by the number of SIM cards.
Additionally, data is charged at 4.4Bz to 5.6Bz ▪ Prepaid mobile plans with tariffs based on usage
per MB according to the number of users ▪ Mobile PBX at a monthly rental of OMR1
▪ Postpaid mobile data plans ranging from

▪ Mobile voice plans bundled with AnyNet minutes,
500MB at OMR3 to 30GB at OMR25 ▪ Bulk messaging
Business Group minutes, data and SMS, ranging
▪ Prepaid mobile data plans ranging from 1GB from OMR5 to OMR100 service for mass
at OMR3 to 30GB at OMR49. A charge of 10 marketing,
▪ Postpaid plans with a choice of bundled minutes
Bz/MB is applied if the user does not have an promotion alerts
that can be shared across your business to be
existing active data plan and business
used by anyone within the company
▪ 4G data plans for 1GB at OMR5 – 100GB at critical messages
▪ Prepaid mobile plans with tariffs based on usage
OMR99
▪ N/A ▪ N/A ▪ N/A

2
Within fixed connectivity, Omantel and Ooredoo offer voice, broadband and dedicated
connections; Awasr plans to launch voice and dedicated connections products
Enterprise services offered by operators in Oman – Fixed services - Connectivity
Fixed services - Connectivity

Operator
Fixed Broadband Voice Dedicated connections
• Unlimited data packages ranging from 4 to • Dedicated speed offered ranging from 256Kbps
300Mbit/s for OMR45 - 1,300 per month • 150 minutes for OMR5 to 200Mbps for OMR350 - 35,000
• Include a specific number of email accounts, per month • Symmetrical b/w
free voice minutes to Omantel mobile and • Unlimited calls for • SLAs
discount on international calls OMR8 per month • Includes a number of free static IP and video
• Also offers static IP address conferencing service
• Unlimited data packages ranging from 5 to • Tariff ranging from

• Dedicated speed offered ranging from 1Mbit/s
350Mbit/s for OMR45 - 979 per month OMR3.5 to 5.5 per
to 200Mbit/s for OMR1,099 - 32,999
• Includes voice with unlimited minutes within the month
• Symmetrical b/w
business group and discounts on international • Calls charged on a
• Includes a wide range of IP addresses
calls usage basis
• On demand Metro Ethernet services with

• Unlimited data packages ranging from 10 - speeds between 10Mit/s and 10Gbits
250Mbit/s for OMR50 - 980 per month • VoBB • Fibre leased lines with speed of 10Mbit/s to
• Doesn’t offer voice 5Gbit/s for OMR2,585-OMR68,587 per month
depending on the contract term (1yr /3yr / 5yr)

3
Within non-connectivity services, Omantel has a very extensive portfolio, specifically
in Co-location & hosting and Public cloud
Enterprise services offered by operators in Oman – Non-connectivity services
Non-connectivity services
Operator
Co-location & hosting Public cloud Security Unified Communications Others
▪ Cloud server
▪ Anti-virus and anti-
▪ Enterprise virtual
spam
▪ Hosted exchange private server
▪ Distributed denial- ▪ Email broadcasting ▪ IPTV
▪ Cloud ERP ▪ Enterprise cloud
of-service (DDoS) solution ▪ Digital
▪ Hosted SharePoint backup
detection and ▪ Conference call marketing
▪ SAP solution ▪ Web hosting
migration
▪ Bill analyser
▪ Email security
▪ Distributed denial-
of-service (DDoS)
managed security
▪ Business
▪ Co-location and hosting service
▪ IaaS conferencing ▪ N/A
(via subsidiary) ▪ Vulnerability
service
assessment and
penetration
testing
▪ Anti-
▪ N/A ▪ N/A ▪ N/A ▪ N/A
virus/malware

4
Both Omantel and Ooredoo provide IoT connectivity; Ooredoo is the only operator
that provides IoT services
Enterprise services offered by operators in Oman – IoT
IoT
Operator
Connectivity Services
▪ Basic IoT connectivity

▪ Siffox network through subsidiary, Momkin ▪ N/A
(not yet commercialised)
▪ Connected SIM bundled with data at a monthly charge of ▪ In-vehicle monitoring solution – a telematics box,
OMR0.25 to OMR2, varying according to the number of with a SIM card that can be fitted to a wide variety
SIM cards of vehicle types, a secure website with a dashboard
▪ Global M2M SIM bundled with data at a monthly charge of to provide reporting analysis and optimisation of
OMR1 for GCC countries and OMR2 for global connectivity fleet vehicle management
▪ N/A ▪ N/A

Understanding Awasr
Next steps
Annexure
Oman fixed broadband market overview – Regulatory landscape 65
The regulatory landscape is favourable to Awasr; only considerations being the

possibility of OB offering retail services and Vodafone getting a fixed licence
Key regulatory considerations for Awasr
Metrics Licences owned Key considerations for Awasr
Omantel Class I licence: • The licence terms and conditions allows resale of access services on a commercially negotiable basis which
• Mobile allows Awasr to potentially partner with Omantel to get access to its FTTH / FWA infrastructure
• Fixed
Ooredoo Oman Class I licence: • The licence terms and conditions allows resale of access services on a commercially negotiable basis which
• Mobile allows Awasr to potentially partner with Ooredoo Oman to get access to its FTTH / FWA infrastructure
• Fixed
Awasr Class I licence: • The fixed licence conditions allow Awasr to offer FWA services along with FTTH services – hence no requirement
• Fixed of licence if Awasr decides to venture into FWA market (either on its own or through partnership with Omantel /
MVNO licence Ooredoo Oman)
• From the major regulatory obligations perspective, Awasr needs to:
• Have ownership of 5% of the entire network
• Get prior TRA approval before launching any new service
• File with TRA any new / amended tariff structure
Oman Class I licence: • OB is looking to venture into satellite based communication system – could be an opportunity for Awasr in case
Broadband • Passive it decides to enter that segment (though it is not recommended due to very limited market size)
infrastructure • As per the licence, OB could potentially start its retail offering after taking prior approval from TRA. However, as
we understand, TRA has given Awasr a verbal comfort that OB will not be allowed to do so – still an area for
Awasr to track regularly
Vodafone Class I licence: • Vodafone does not have a fixed licence currently
• Mobile • If it is able to get the fixed licence, then it would create competition for Awasr
• However, if it is not able to get the fixed licence, then Awasr to could explore partnership options with Vodafone I
which both can complement each other in terms of service offerings
2019142-382 | Confidential Source: TRA, Awasr, Analysys Mason

Understanding Awasr

Next steps
Annexure
Oman fixed broadband market overview – Implications for Awasr 67
The developments in Oman market have created a number of opportunities and

threats for Awasr
Opportunity /
Market developments
threat
▪ Potential to increase subscriber base in OB areas Opportunity
Residential ▪ Potential to cater to customers beyond OB network coverage Opportunity
▪ ARPU is stagnating/decreasing Threat
▪ Underpenetrated market with a potential for growth Opportunity

Enterprise
▪ Evolving demands/requirements Opportunity
▪ Integrated operators could offer fixed-mobile convergence and increase market

Threat
share
Overall ▪ Upcoming 5G launch Opportunity
▪ Vodafone’s potential entry in the fixed market in the medium term Threat
Opportunity Threat
Understanding Awasr
Next steps
Annexure
Understanding Awasr 69
Since its launch, Awasr has grown to acquire ~25k subscribers and generated a
revenue of OMR6.9 million in 2018; however, it is yet to achieve positive EBITDA
Awasr subscriber base (‘000) Awasr revenue (OMR million)
29.1 6.9
24.9 1.2 0.8 6.1
1.0 0.7
+157% +244%
12.2 27.9
0.6 23.9 2.5 6.1
5.4
0.3
3.8 11.7
0.2 0.6 2.2
3.6 0.0 0.6
2016 2017 2018 1H2019 2016 2017 2018 1H2019
Residential Enterprise Residential Enterprise
X% CAGR
Awasr ASPU (OMR/month)

Awasr EBITDA (OMR million)
103 100 97
92
-0.9
33 34 34 33
31 30 31 31 -3.3
-3.8
2016 2017 2018 1H2019
-4.8
Blended Residential Enterprise 2016 2017 2018 1H2019
2019142-382 | Confidential Source: Awasr

Awasr has launched and planned various initiatives and products for residential and
enterprise segments to grow its revenue
Awasr’s timeline
2016 2017 2018 2019 2020
▪ Awasr launched ▪ Partnered with SAP to develop ▪ Awasr launched Jawwy ▪ New initiatives such as
proposition for Enterprise cloud TV in May 2019 managed Wi-Fi, parental
▪ Introduced speed
services control, security services are in
based plans ▪ Implemented SAP
the development phase
▪ In Jan’18, Tanmia acquired 32% ordering and billing
stake in Awasr ▪ For enterprise segment
▪ Fixed voice service is
initiatives like fixed voice, IP
▪ In Jan’18, Awasr has launched a in pipeline for soft
leased lines, SD-WAN, IP-VPN,
dedicated 24-hour customer care launch by end of 2019
managed Wi-Fi, Cloud
facility, which will ensure that it is for residential
computing and security are in
always within reach for both customers
pipeline
residential and enterprise
customers
▪ In March’18 Awasr launched
unique ‘double your speed’
promotion
Planned
2019142-382 | Confidential Source: Awasr, News article

Awasr could leverage its strengths to capture opportunities in the Oman market
Strengths Weaknesses
▪ Good/premium brand perception

▪ Dependency on Oman Broadband
▪ Focused on high-speed technology (FTTH)

▪ Limited coverage (mostly in Muscat)
▪ Lean organization
▪ Focused on a single segment (residential),
limited capabilities in the enterprise segment
▪ Operational excellence
▪ Limited financial strength
▪ Potential to increase subscriber base in OB ▪ Potential entry of Vodafone in the fixed market
network areas – increase take-up, increase
churn from competitors ▪ Potential entry of OB in fixed retail market
▪ Potential for growth in enterprise market ▪ Potential bundled / converged (quad-play)

offerings from competitors
▪ Potential to cater to customers beyond OB
network coverage ▪ Delays/limitations in OB network roll-out
Opportunities Threats

Going forward, Awasr’s key strategic objectives are to become a significant player in
the fixed broadband market in Oman and to hold an IPO in the near future
1 2
Strategic objectives Become a significant player in the fixed Achieve financial targets to go for IPO in
of Awasr broadband market in Oman the near future
▪ Increase subscriber base (residential and enterprise)
▪ Target high growth areas/market segments
Roadmap to
achieve the ▪ Increase revenue
strategic objectives
▪ Reduce operational costs through process
optimization and automation
▪ Continue with the existing capex-light

business model
2019142-382 | Confidential Source: Analysys Mason, Awasr

Understanding Awasr
Next steps
Annexure
Initial assessment of strategic options for Awasr 74
Options for Awasr’s strategic direction can be categorized into four broad categories
Residential Enterprise
a b
Within OB
network
Increase focus on Enterprise segment

Current focus
Fixed market
c
Beyond OB
network
Expand beyond OB’s network coverage

through partnership with Omantel/Ooredoo
d
Other markets
Launch MVNO to cater to both Residential and Enterprise segments
In order to determine Awasr’s strategic direction, the strategic options can be

assessed through a criteria that is a mix of external and internal factors
External factors Internal factors
Fit with Awasr’s strategic / financial

Size of opportunity
objectives
Criteria for Fit with Awasr’s

Competitive intensity
strengths/capabilities
assessment
of strategic
Capex intensity options Ease of implementation
Ease of regulatory approval Time to market

Total residential addressable FTTH net adds for Awasr within OB network is
a
estimated to be 187k in the next four years
Estimation residential FTTH net adds (‘000) Muscat Outside Muscat
2019 2023 2019 2023
OB homes passed ▪ Based on roll-out plan of OB from Awasr’s business plan after
removing vacant tags in Muscat and outside Muscat
248 308 48 222
(Non-vacant)
Take rate1 on OB ▪ In Muscat, take rate is estimated to increase from 37% to 70%
▪ Outside Muscat, take rate is estimated to increase from 10% to 37% 70% 10% 37%
network 37% as roll-out started late
Number of FTTH ▪ FTTH connections connected on OB network is estimated based

92 216 5 82
connections on OB on take-up rate in Muscat and outside Muscat
FTTH net-adds in ▪ In next four years (2019 to 2023) OB is expected to add 201
124 77
next four years additional FTTH connections
201
Enterprise FTTH net ▪ Enterprise FTTH net adds represent around 7% of total market
14
adds in next 4 years nets adds in the market
Total residential FTTH ▪ Total residential FFTH additional connections on OB network 187
net-adds on OB that OB can target in next four years (Residential net adds in 4 years)
Take-rate is based on global benchmarks
Note:1 Take rate: ratio of number of FFTH connections to number of homes passed
2019142-382 | Confidential Source: Analysys Mason, OB, Awasr
Residential business (within OB network) has a significant size of opportunity and

a
very limited capex intensity
Assessment of strategic options - Residential business, within OB network Assessment
• There would be an estimated ~187k addressable FTTH net adds within OB network over the next
Size of four years. These will be driven by:
opportunity – Expansion of OB’s fibre network in new areas
– Increase in take-up of FTTH in existing OB coverage areas
• Three player market, with two integrated operators

• Awasr is the only fixed-focused (and FTTH-focused) operator in the market
• Product portfolios of all three players are competitive, with limited room to differentiate
External factors
Competitive
– All players have FTTH offerings, at similar price and speed levels
intensity
– All players have video/TV offerings
– Awasr is the only one which doesn’t offer voice
– Awasr falls behind on value added services
• Awasr can continue with the current low-capex model of leveraging OB’s fibre network to offer FTTH
• Product portfolio can be strengthened (to potentially include voice and VAS) with limited capex
Capex intensity
– Introduction of voice is already under process
– VAS can be offered via partnership route (with limited investment)
Ease of
regulatory • No/minimal regulatory approvals required
approval
Least Most
2019142-382 | Confidential favourable favourable
Further, it is favourable on all the internal evaluation criteria except that it may not
a
be sufficient to meet its financial objectives
Assessment of strategic options - Residential business, within OB network Assessment
Fit with Awasr’s • Increase in subs base would increase revenue, but may not be sufficient to meet financial goals
strategic / • Continue with the existing capex-light business model
financial • Capture the low hanging fruits in the market – take initiatives that leverage existing capabilities
objectives and do not require significant additional investment
• Awasr has a strong residential business

Fit with Awasr’s – Residential focused products such as Jawwy TV
Internal factors
strengths / – Targeted sales teams and sales channels

capabilities • Awasr’s market positioning is perceived as “premium” – FTTH only, high speeds only
• Awasr is able to offer a superior customer experience
• No major implementation hurdles - can be achieved by strengthening existing

Ease of strengths/capabilities
implementation
• No major organizational overhauls required
• In continuance with Awasr’s current focus

Time to market – Introduction of voice is already under process
– VAS can be offered in a reasonable timeframe via partnership route
• Significant size of opportunity – 187k FTTH net-adds by 2023

Overall
• Low capex intensity – continue leveraging OB’s network; strengthen portfolio with limited capex
Overall
• Fit with Awasr’s objectives – increase subscriber base; continue with the existing capex-light model
• Leverages Awasr’s existing strengths – strong residential portfolio; good brand perception
Least Most
Fixed enterprise services is expected to become an OMR126 million market by

b
2023
Enterprise fixed broadband connections and penetration in Oman Enterprise fixed market revenue for operators in Oman (OMR
million)
Enterprise fixed broadband connections (’000s)
X% CAGR (2018-2023) Fixed enterprise services is
Penetration (%) X% CAGR (2018-2023) expected to become an OMR126
million market by 2023
Forecast Forecast
16k net-adds are expected in the fixed enterprise
market over the period 2018-2023
+9% 25%
24% +3%
23% 125 126
123
22% 119
114
20% 109
18%
43 45
41
37
34
29
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023

Enterprise business (within OB network) has a large size of opportunity but high
b
competitive intensity
Assessment of strategic options - Enterprise business, within OB network Assessment
Size of • Fixed enterprise services is expected to become an OMR126 million market by 2023
opportunity – 16k net-adds are expected in the fixed enterprise market over the period 2018-2023
• Three player market, with two integrated operators

– Omantel dominates with ~75% share of the market
• Omantel and Ooredoo have much stronger product portfolios
Competitive – Both offer a range of services across the categories of mobile, fixed and ICT
External factors
intensity – Awasr’s portfolio is limited to fixed connectivity

• Omantel and Ooredoo have a stronger brand/reputation than Awasr
• Being the incumbent, Omantel has strong ties with the government. This gives it a strategic
advantage in acquiring government clients
• Developing enterprise focused products/services (beyond fixed connectivity services) such as

Capex intensity ICT services will need some incremental investment
Ease of • Technical / security clearance required for connectivity products/services

regulatory
• No/minimal regulatory approvals for value added services / add-on services
approval
Least Most
Further, it is largely aligned with Awasr’s objectives; however, implementation could

b
be a little challenging
Assessment of strategic options - Enterprise business, within OB network Assessment
Fit with Awasr’s • Aligned with the objective of generating more revenue through introduction of additional
products/services and targeting high growth market segments (enterprise market)
strategic /
• Can largely continue with the capex-light model by leveraging OB’s network
financial
• However, new products/services will need some investment, could take time to achieve profitability,
objectives
and potentially lead to some delay in achieving break-even
• Awasr doesn’t have a strong brand/reputation amongst enterprises

Fit with Awasr’s
Internal factors
• Awasr’s current portfolio is lacking key products that are relevant for enterprises, specially large ones
strengths /
capabilities – Awasr doesn’t have fixed/mobile voice as of now (fixed voice is under development)
– It also lacks on sophisticated ICT products
• Awasr is already in the process of enhancing its enterprise related systems

Ease of • Will require development of new products which could face challenges
implementation • Will need to forge partnerships with vendors/integrators
• Will need to develop new sales channels to target enterprises
Time to market • Development of products and sales channels could take some time
• Large size of opportunity – OMR126 million market by 2023

Overall
• High competitive intensity – Omantel & Ooredoo have stronger portfolios & brand/reputation
Overall
• Largely aligned with Awasr’s objectives – increase revenue, but could potentially delay break-even
• Implementation could be a little challenging – new products, partnerships, sales channels
Least Most
There exists an addressable market of 309K subscribers for Awasr outside of OB’s
c
network (across three technologies); majority of the demand lies with FWA
Total FBB connections in 2023 outside OB’s network (‘000)
Driven by Omantel’s rollout

of FTTH beyond OB network
coverage across Oman Driven by Omantel’s and
Ooredoo’s FWA network
309
across Oman
33
Driven by Omantel’s ADSL

network across Oman
142
133
Total FBB market Omantel own FWA ADSL

outside OB’s network FTTH connections

Expansion beyond OB network has a reasonable size of opportunity, but will face
c
high competitive intensity
Assessment of strategic options – Expansion beyond OB network Assessment
Size of • There would be a total 309k subscribers outside of OB’s network by 2023. There could be an
opportunity opportunity for Awasr to capture a share of these, depending on the technology it chooses to offer
Competitive • Both Omantel and Ooredoo have extensive coverage in areas beyond OB’s network
External factors
intensity • Being integrated operators, Omantel & Ooredoo have stronger brand recognition throughout Oman
• If Awasr partners with Omantel/Ooredoo and uses their ADSL/FWA network, it would be able to
Capex intensity continue with its current capex light model
• However, there would be some capex required for systems and expansion of sales channels
Ease of • Offering ADSL/FWA using operators’ networks is within the purview of Awasr’s licence
regulatory
• However, security/technical clearance would be required
approval
Least Most
Further, it isn’t aligned with Awasr’s strategic/financial objectives and has a long
c
time to market
Assessment of strategic options - Expansion beyond OB network Assessment
Fit with Awasr’s ▪ Aligned with increasing revenue through targeting high growth markets (areas outside Muscat)
strategic / ▪ Can largely leverage Omantel/Ooredoo’s network
financial ▪ However, expansion beyond OB areas will need some investment, could take time to achieve
objectives profitability, and potentially lead to some delay in achieving break-even
• Awasr doesn’t have strong brand recognition outside of Muscat

Fit with Awasr’s • ADSL/FWA offer lower speeds than FTTH. Hence, they are not aligned with Awasr’s market
Internal factors
strengths / positioning of being a “premium” / FTTH-only provider. However, launch of 5G FWA could address
capabilities this to some extent
• Awasr’s current portfolio (such as Jawwy TV) is more FTTH centric and can’t be offered on ADSL/FWA
Ease of • Forging a partnership with Ooredoo/Omantel could be complicated as none of the operators are
implementation likely to offer “commercially viable” terms to Awasr (unless TRA intervenes)
• Development of ADSL/FWA network products and incorporating them into Awasr’s systems could be
time consuming
Time to market • Expansion of sales/operations beyond OB areas would take a long time
• Negotiations on network sharing with Omantel/Ooredoo would take a long time
• Reasonable size of opportunity - a total 309k subscribers outside of OB’s network by 2023
Overall
• High competitive intensity – Omantel & Ooredoo have extensive coverage & strong brand recognition
Overall • Lack of fit with Awasr’s objectives – low brand recognition; not aligned with Awasr’s premium/high-
speed positioning; some of the current products (Jawwy TV) can’t be leveraged
• Long time to market - development of products/systems; sales/operations; negotiations with OM/OO
Least Most
Consumer & enterprise mobile markets to reach OMR452 million & OMR64 million by
d
2023; fixed-mobile convergence can help get a larger pie of fixed enterprise market
Consumer mobile market revenue in Oman (2018-2023) Enterprise mobile market service revenue in Oman (OMR million)
+2% +1%
444 452 63 64
434 61 60 61 62
411 421
402
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
X% CAGR (2018-23) X% CAGR (2018-23)
In addition to addressing the mobile market, MVNO can also be used to offer fixed-mobile convergence and help capture a larger share
of the fixed enterprise market (OMR126 million by 2023). This is because a high proportion of enterprises have a preference for
purchasing both mobile and fixed services from the same provider. Details are provided in “Strategic initiatives for Awasr: MVNO”
d MVNO business has a sizeable opportunity but faces very high competitive intensity
Assessment of strategic options – MVNO Assessment
• Consumer mobile services is expected to become an OMR452 million market by 2023

Size of • Enterprise mobile services is expected to become an OMR64 million market by 2023
opportunity • Additionally, MVNO services would also help capture a larger share of the fixed enterprise market
(OMR126 million by 2023)
• Two well-established operators, Omantel and Ooredoo, and multiple MVNOs make it a competitive
Competitive market
External factors
intensity • Vodafone is expected to launch mobile operations in 2020

• Another MVNO, RedBull, is expected to launch soon
• The capex intensity would depend on the type of MVNO business model adopted by Awasr
Capex intensity – A Full MVNO would require a significant amount of capex
– The Branded Reseller MVNO model would require less capex
Ease of • Awasr’s licence doesn’t allow it to offer MVNO services

regulatory
• However, Awasr has been granted a licence for light MVNO (yet to be delivered)
approval
Least Most
Further, it has a reasonable fit with Awasr’s strategic objectives but isn’t aligned
d
with Awasr’s strengths/capabilities
Assessment of strategic options - MVNO Assessment
Fit with Awasr’s • Aligned with the objective of generating more revenue through additional products/services
• Further accelerate revenue growth by addressing a larger share of the fixed enterprise market
strategic /
• Largely a capex-light business model – leverage MNOs’ network
financial • However, launching MVNO would some investment, could take time to achieve profitability, and
objectives potentially lead to some delay in achieving break-even
Fit with Awasr’s • Awasr doesn’t have strong brand recognition in the mobile market
Internal factors
strengths / • MBB offers much lower speeds than FBB (specially FTTH). Hence, it isn’t aligned with Awasr’s
capabilities premium / high-speed positioning. However, launch of 5G FWA could address this to some extent
• Forging a partnership with Omantel/Ooredoo could be complicated. However, Awasr should be able
Ease of to get reasonable terms similar to other MVNOs
implementation • Incorporation of MVNO into Awasr’s systems could take some effort
• Commercial negotiations with Omantel/Ooredoo, development of products and sales channels, and
Time to market incorporation of MVNO services into Awasr’s systems would need 6-9 months
• Significant size of opportunity: OMR516 million consumer & enterprise mobile market by 2023;
Overall
would also help capture a larger share of the fixed enterprise market (OMR126 million by 2023)
Overall • Very high competitive intensity – well-established competitors; entry of Vodafone and RedBull
• Fit with Awasr’s objectives – revenue through new products; address enterprise market; capex-light
• Poor fit with strengths – low brand recognition; unaligned with premium/high-speed positioning
Least Most
In summary, as top priority, Awasr could continue focusing on residential business and
expand into enterprise; next priority could be expanding beyond OB & launching MVNO
Assessment of strategic options Assessment
a
• Significant size of opportunity – 187k FTTH net-adds by 2023
Residential
business, • Low capex intensity – continue leveraging OB’s network; strengthen portfolio with limited capex
within OB • Fit with Awasr’s objectives – increase subscriber base; continue with the existing capex-light model
network • Leverages Awasr’s existing strengths – strong residential portfolio; good brand perception
Top
b priority
• Large size of opportunity – OMR126 million market by 2023
Enterprise
business, • High competitive intensity – Omantel & Ooredoo have stronger portfolios & brand/reputation
within OB • Largely aligned with Awasr’s objectives – increase revenue, but could potentially delay break-even
network • Implementation could be a little challenging – new products, partnerships, sales channels
c • Reasonable size of opportunity - a total 309k subscribers outside of OB’s network by 2023
• High competitive intensity – Omantel & Ooredoo have extensive coverage & strong brand recognition
Expansion
• Lack of fit with Awasr’s objectives – low brand recognition; not aligned with Awasr’s premium/high-
beyond OB speed positioning; some of the current products (Jawwy TV) can’t be leveraged
network
• Long time to market - development of products/systems; sales/operations; negotiations with 2nd
OM/OO
d priority
• Significant size of opportunity: OMR516 million consumer & enterprise mobile market by 2023;
would also help capture a larger share of the fixed enterprise market (OMR126 million by 2023)
MVNO • Very high competitive intensity – well-established competitors; entry of Vodafone and RedBull
• Fit with Awasr’s objectives – revenue through new products; address enterprise market; capex-light
• Poor fit with strengths – low brand recognition; unaligned with premium/high-speed positioning
Least Most
Understanding Awasr
Residential business, within OB network
Enterprise business, within OB network
Expansion beyond OB network

MVNO
Next steps
Annexure
Strategic initiatives for Awasr 91
Growth in the residential market can be driven by three factors – increasing gross
additions, reducing churn and increasing ARPU
Ways to drive revenue growth in residential fixed broadband market
Increase revenue
Increase subscribers Increase ARPU
Increase FTTH gross adds Reduce churn / termination
Capture market in new

areas
Capture market in existing

area
Capture market from

competition

Offering an affordable, fast and reliable connection are the key factors to drive
increase in gross adds
Factors that customers take into account while selecting fixed
broadband packages1
Lower prices is
the most
important factor
70%
Speed
Homeand reliability
Wi-Fi related
60%
▪ Fast and reliable connectivity at an affordable price are the
Percentage of respondents
50%
Home Wi-Fi solutions most important requirements of residential customers from
provide an opportunity FBB packages
40% to address speed and
reliability demand from ▪ Value added services and other bundled services such as
30% customer fixed line, content, cloud storage etc. are secondary,
however, are sometime seen as key differentiator and
20%
additional value received without paying extra price
10% ▪ From ISPs’ perspective, VAS have been helpful in increasing
0% customer stickiness (fixed voice connection – people do not
want to change their number) and drive usage on their
Other
Lower price
Additional services not offered
Fits into a bundle with
New and better router

New TV set-top box
Greater service reliability

Mobility – switch to
Higher download speeds

Higher upload speeds
mobile broadband
other services I buy
network (through content offering) which in turn will provide

by your current provider
opportunity to upsell
Source: Analysys Mason

1 based on Analysys Mason’s Connected Consumer Survey 2018 for ~1000 people
To reduce churn, customer service and VAS are important factors apart from speed
and price; further, VAS can also help increase ARPU
Results of statistical regressions on specific aspects of fixed
broadband services and take-up of fixed VAS on Customer
satisfaction1
0 0.5 1
VAS increases customer satisfaction and therefore helps
reduce churn
Customer service 0.61
1 point increase in
• Taking bundled cloud storage with broadband correlates with a
Speed 0.61 customer service +28% increase in customer satisfaction
satisfaction implies • Taking bundled access to Wi-Fi hotspots with broadband
0.61 increase in correlates with a +21% increase in customer satisfaction
Price 0.38 willingness to
recommend
Any fixed VAS 0 .2 8

VAS can further drive increase in ARPU as customers take up
additional services
If a respondent takes any
Usage restrictions 0.10 VAS with their broadband,
this corresponds to 28% • Value added services increases the operator’s share of
increase in customer consumer wallet by offering multiple services and help increase
Reliability Collinear with speed satisfaction the ARPU
Increase in willingness to recommend with 1-point

increase in satisfaction with service aspect/if
respondent takes fixed VAS

1 These values represent the coefficients of a regression of fixed broadband service characteristics against willingness to
recommend (customer satisfaction) the service (on a scale of 0–10). Service characteristics are scored 1–5 while the
presence of VAS is 0 or 1.
Factors that drive growth in the residential market can be targeted via three focus
areas: commercial offerings, sales and marketing and customer experience
Increase FTTH gross adds Reduce churn / termination Increase ARPU
Commercial offering Commercial offering Commercial offering

Focus areas
Sales and marketing Customer experience Sales and marketing

Strategic initiatives for Awasr Commercial offering 95
There are several initiatives related to Commercial offering which have been
adopted by ISPs globally to increase revenue [1/2]
Potential ways to target

Description Key benefits
residential customers
• Simplified portfolio: packages which a user can easily relate to based
on his requirements; packages need to be revisited to ensure value • Product differentiation and hence increase
Offer simplified and
delivered share of gross adds
competitive packages
• Competitive portfolio: product portfolio (esp. entry level pack) should • Increase ARPU
be competitive in terms of price, services offered and other T&Cs
• Fixed voice has been a commoditised service often being offered as

Offer standard service bundled free of cost and is typically used to retain customers (due to
• Drive uptake of higher packages and hence
bundles: association with fixed number)
increase ARPU
• Fixed voice • Subscription of most popular content is offered either as bundled (as
Commercial offerings
• Churn reduction
• Video content / TV free) or as paid (at a discount) or a mix of both (free for few months
and paid thereafter)
• Adding mobile service to the triple play fixed broadband offering • Churn reduction
Offer quad play
(broadband, fixed line and TV) • Increase ARPU
• Home networking : Includes solutions such as managed home Wi-Fi,

Offer emerging products (as
meshed Wi-Fi
standalone products /
• Smart home solution: Includes smart lightning, home entertainment • Product differentiation and hence increase
bundles)
automated homes share of gross adds
• Home networking
• Security: VPN and encryption services, other security services for • Churn reduction
• Smart home solutions
secure internet such as anti-virus and parental control • Increase ARPU
• Security solutions
• Cloud Storage: Complementary cloud storage
• Other ICT solutions
• Public Wi-Fi: Access to public Wi-Fi network
Offer customized packages

• For example, high bandwidth and low latency packages for gamers • Increase share of gross adds
for specific user segments
2019142-382 | Confidential Source: Analysys Mason, Operator websites

There are several initiatives related to Commercial offering which have been
adopted by ISPs globally to increase revenue [2/2]
Potential ways to target Global case

Description
residential customers studies
• HKBN had implemented aggressive pricing strategy to acquire residential customers

Offer simplified and • Later it increased the tariffs but maintained its market share
competitive packages
• Jio has launched Jio Fibre with very attractive prices to gain market share
• Jio has created a robust content ecosystem and partnership to offer popular content and movies
Offer standard service
bundles: • Ooredoo differentiates itself by offering South-Asian content to target expat population
• Fixed voice
• TalkTalk and airtel has partnered with OTT video providers such as NETFLIX, prime video, Hopster
• Video content / TV
to offer bundled TV packages
• MVNO launch in Jun 2018, with unique ‘value and a worry-free experience’ proposition
Offer quad play
• MVNO provided cross sell opportunity as subscribers get bonus data when they sign up for mobile
• Bahnhof offers a unique selling point that emphasizes on providing privacy and security
Offer emerging products
(as standalone products / • Orange has been successful in upselling higher value plans by offering better Wi-Fi equipment,
bundles) managed home Wi-Fi, guest Wi-Fi network, internet access control and visibility functionality
• Home networking
• Smart home solutions • Comcast is using Wi-Fi as the basis for a number of additional services including connected home
• Security solutions security, smart home automation
• Other ICT solutions • StarHub has partnered with Google to offer google home and google Wi-Fi which helped in
customer acquisition, retention and upselling
Offer customized packages • Hyper and MyRepublic target specific segment of customers (youth and tech savvy) to offer
for specific user segments customised packages for gamers with high bandwidth and low latency

Awasr already has some ongoing / planned initiatives, but a number of additional
initiatives could help further enhance its Commercial offering

Awasr’s current positioning Way forward for Awasr
• Simplified portfolio: Awasr already has simplified product portfolio
focusing only on the speed (with unlimited data) • Refresh current product portfolio to make it
Offer simplified and • Competitive portfolio: Awasr’s entry level plan is competitive in competitive in terms of services offered (e.g.
competitive packages terms of pricing and T&Cs (no contract) but not in terms of adding TV in entry level package on paid basis)
services offered (e.g., no voice and TV); Other plans are and possibly to increase ARPU
competitive from all perspective except lacking fixed voice
• Fixed voice is not offered currently but is in pipeline and could get
Offer standard service • Look for partnership with Bollywood content
ready in next few months
bundles: providers to target large Indian population as well
• Content: Already has partnership with Jawwy TV which offers live

• Fixed voice as international content providers (e.g., Amazon
Arabic, western and Turkish content only; no partnership with
• Video content / TV Prime, Netflix) to target other expats
other content providers to target large expat population in Oman
• Start building MVNO proposition leveraging

Offer quad play • No mobile offering
recently acquired licence
Offer emerging products (as

standalone products /
• Include wi-fi management solutions, smart home
bundles) • No product offerings currently but few solutions (i.e., parental
solutions and cloud services in the VAS portfolio
• Home networking control in Jawwy TV) are in pipeline and are expected to be
which are one of the most preferred services or
• Smart home solutions launched in next few months
are expected to gain traction in the near future
• Security solutions
• Other ICT solutions
Offer customized packages • Identify key target segments in Oman and develop
• No product offerings
for specific user segments customized packages to target those

Strategic initiatives for Awasr Sales and marketing Customer experience 98
Similarly, there are many initiatives related to Sales and marketing and Customer
experience adopted by ISPs globally to support growth in user base / revenue [1/2]

• Enable sales agent to view all the customer’s interactions

Perform customer analytics to (on digital and other platforms) and enable them with more
• Opportunity to up-sell and hence increase ARPU
provide sales agent 360° comprehensive solutions
• Customised service to customers (reduce churn)
customer view • Data analytics on consumer data can provide important
Sales and marketing
actionable insights
• Enable sales channel partners with customer data such as • Opportunity to up-sell and hence increase ARPU
Equip (exclusive) channel
customer purchase history, current plan, usage etc. for • Enable closing deals
partners with CRM analytics
easier prospecting, engaging and closing deals • Offer better customer service
Explore new sales channels

• WhatsApp, digital platforms, • Reaching prospective customers using multi-channel sales
• Opportunity to target right customer segment and
• kiosks strategy using digital platforms, Kiosks and referral
increase gross adds and ARPU
• customer and employee schemes
referrals
• Ensure swift resolution of query and 24X7

Digitalise after-sales support • Chatbots interact with customer to identify and solve
availability
experience
through live chatbots customer queries

Customer
• Reduce churn and saves cost
Allow customers to self-support • Empower and educate customers by developing self • Empower customers, reduce dependency on
technical issues support guidelines customer care agent and hence save costs

Similarly, there are many initiatives related to Sales and marketing and Customer
experience adopted by ISPs globally to support growth in user base / revenue [2/2]

• T-Mobile uses a platform to process customer data that could indicate trends in why customers
were deciding to move operators and where their experience may be sub-optimal
Perform customer analytics to • Bredband2 developed an in-house ERP1 system that facilitates customer monitoring, allowing
Sales and marketing
provide sales agent 360° the sales and customer service team to quickly deal with issues, obtain feedback from
customer view subscribers, and better coordinate marketing promotions
• TalkTalk uses Salesforce.com to offer integrated 360° view of the interactions with customer in
all the sales channels which provides an opportunity to upsell
Explore new sales channels • du is pursuing a digitalistion strategy to catalyse growth beyond traditional connectivity
• WhatsApp, digital platforms, • du sells and promote its product through digital sales channels to target desired customer base
• Kiosks
• customer and employee • Integrate new communications channels with company website to enhance customer choice
referrals • Proximus provides instant live agent interaction to web browsers and online sales support along
with online chat
Customer experience
Digitalise after-sales support

• du and Proximus offer aftersales support and customer care support through online chatbots
through live chatbots
Allow customers to self-support • BT has developed a detailed online guidelines to help customers navigate to identify and solve
technical issues their technical problem
Note: 1 ERP: Enterprise Report Planning

Being a relatively new player, Awasr has room to improve its Sales and Marketing as
well as Customer experience to drive growth

Awasr’s current positioning Way forward for Awasr
• Adopt a customer analytics tool

• Set-up a team to analyse customer data and generate 360°
Perform customer analytics to Awasr currently lacks detailed customer analysis customer view
Sales and marketing
provide sales agent 360° and process to provide a 360° customer view to • Develop a process to train sales force to use the actionable
customer view sales agent customer insights
• Provide CRM analytics tools and train channel partners to use
CRM analytics to drive sells
Explore new sales channels

• WhatsApp, digital platforms, Awasr is currently selling through digital channels
• Continue testing and piloting sales through new channels and
• kiosks including WhatsApp and has plan to launch referral
implement successful channels
• customer and employee programs
referrals
• Implement chatbots for basic customer care solutions

Digitalise after-sales support
No chatbots • Later, increase functionality of chatbots to minimize human
experience
through live chatbots

Customer
interventions
Allow customers to self-support

No self-support system • Develop self-support tools
technical issues

To summarise, Awasr can choose from the following initiatives to achieve the
strategic objective of increasing revenue from the residential market
Strategic initiatives for Awasr to drive growth in residential market
1 Refresh current product portfolio - add content in entry package and increase price
2 Broaden the content offering to target non-Arabic speakers (e.g., Asian and English content)
3 Offer quad-play services using MVNO licence
4 Offer emerging add-on products (e.g., smart home solutions, wi-fi management solutions)
5 Offer customized packages for specific user segments (e.g., gamers)
6 Adopt customer analytics tools for sales force and sales channels
7 Explore new sales channels
8 Digitalise after sales support through chatbots
9 Develop sales support tools
Commercial offering Sales and marketing Customer experience

Selection of the identified strategic initiatives could be driven by evaluation of each

on three parameters – size of opportunity, costs, and ease of implementation
Assessment of strategic options to drive growth in residential market – to be filled by Awasr team
Products / services Size of opportunity Cost/investment Ease of implementation Overall
Refresh product • Increase gross adds and

portfolio ARPU
Broaden content • Increase ARPU and reduce

Commercial offering
offering churn
Quad-play
• Increase ARPU and reduce
churn
Emerging add-on • Increase gross adds and

services ARPU and reduce churn
Targeted packages • Increase gross adds
Customer analytics
•
distribution
Increase ARPU
Sales and
tools
New sales channels • Increase gross adds
Digitalise after sales

•
experience
Reduce churn
Customer
support
Self support tools • Reduce churn
Least Most
Understanding Awasr
MVNO
Next steps
Annexure
Large enterprises tend to have higher stickiness to current providers and also
require complex solutions and services as compared to SMEs
Key characteristics of enterprise customers
▪ High adoption of enterprise connections/services; some have national / regional

/ global contracts; long-term contracts
▪ Not very price sensitive
Government
▪ Stringent on quality of service - guaranteed service levels and dedicated
Private
support
…and also increasing complexity

▪ Consider the brand / reputation of service provider as extremely important
Increasing stickiness…
– Specially government enterprises: have a higher tendency to opt for
large/incumbent/public operators
▪ Require sophisticated ICT solutions to manage complex business needs Large
▪ Require customised solutions as per specific business requirements enterprises
▪ Low adoption of enterprise connections/services (unaware of

benefits of enterprise connections)
▪ Price sensitive
▪ Less stringent on quality of service, but more than residential SMEs
segment
▪ Require standard solutions, best to be packaged in bundles
▪ Require quick order processing and service provisioning

Due to the difference in key characteristics, large enterprises and SMEs could be
targeted with different approaches
Key implications for Awasr, based on characteristics of enterprise customers
▪ In general, it would be challenging for Awasr to acquire large enterprises

– Most of the large enterprises in Oman would already be using services of Omantel/Ooredoo
– The high stickiness and high complexity in this segment as well as Omantel/Ooredoo’s
stronger brand/image, it will be very difficult for Awasr to target LEs
Government
Private
– Even if Awasr targets LEs, Omantel/Ooredoo (stronger portfolio/capabilities and economies
of scale) would be able to offer better terms/price on most occasions
▪ Acquiring large government enterprises would be even more challenging
▪ However, in the private sector, Awasr could try to get a foot in the door
– Offer complimentary products/services that can be added on top of existing
connection/service (without the need of churning from existing provider) Large
– Once the relationship is well-established, Awasr could try to upsell core connectivity enterprises
▪ It would be easier for Awasr to target SMEs

– Lower stickiness than large enterprises
– There is low adoption of enterprise services amongst SMEs. Awasr could SMEs
look to acquire new users by educating them about the benefits of
enterprise connectivity
– SMEs can be served with less complicated products/services

For large enterprises, connectivity services (mainly dedicated connections) are most
important; however, non-connectivity services also form a reasonable share of demand
Large enterprise fixed market revenue for Large enterprise connectivity services
operators by product1 (%), 2023 revenue for operators by category (%), 2023
100% = OMR74 million 5% Fixed voice
1% ▪ Within connectivity services,
Fixed broadband dedicated connections is
18% Dedicated connections3 expected to be the key
category
94%
Large enterprise non-connectivity services

revenue for operators by category (%), 2023
82%
2% 12% Security
▪ Within non-connectivity
Fixed connectivity services
2% services, public/private
Non-connectivity services2 Public/private cloud
cloud and co-location and
hosting services are
40% Unified communications
▪ For large enterprises, connectivity expected to form a major
services are expected to form the major Others proportion of operator
44%
share of fixed services revenue for revenue in 2023
operators in 2023
2. Includes services such as unified communications, SaaS, PaaS, IaaS, security services, private cloud, co-location and
hosting, enterprise mobility and desktop management 3. Includes managed services for dedicated connections
For the SME segment, fixed connectivity services are most important; non-
connectivity services have a negligible share of demand
SME fixed market revenue for operators by SME connectivity services revenue for
product1 (%), 2023 operators by category (%), 2023
100% = OMR53 million Fixed voice
17% ▪ Within connectivity services,
Fixed broadband dedicated connections,
4%
Dedicated connections3 followed by fixed broadband
51% and fixed voice services are
expected to be the key
32%
services
SME non-connectivity services revenue for

operators by category (%), 2023
96% 100% = OMR2 million
5% Security
4% ▪ Within other business
Fixed connectivity services Public/private cloud services, security services
Other business services2 19% 37%
Co-location and hosting and public/private cloud
Unified communications services are expected to
▪ For the SME segment, connectivity Others form a major proportion of
services are expected to form a major operator revenue in 2023
proportion of operator revenue in 2023 35%
2. Includes services such as unified communications, SaaS, PaaS, IaaS, security services, private cloud, co-location and
hosting, enterprise mobility and desktop management 3. Includes managed services for dedicated connections
Fixed enterprise products / services provided by operators in the Middle East

include connectivity services, unified communications, cloud and hosting...
Benchmarks of products / services for the enterprise market
Category Etisalat (UAE) Omantel Ooredoo (Qatar) STC (KSA) Zain (Kuwait)
Connectivity ▪ Mobile voice and SMS ▪ Mobile voice and SMS

▪ Mobile voice and SMS ▪ Mobile voice and SMS
▪ Mobile data ▪ Mobile radio ▪ Mobile voice and SMS
▪ Mobile PBX ▪ Mobile data
▪ Mobile data ▪ Mobile data
▪ Mobile data ▪ Bulk SMS
▪ Bulk SMS
▪ Dedicated internet line ▪ DIA
(IDA)
▪ DIA ▪ DIA
▪ IP/MPLS VPN
▪ MPLS ▪ IP/MPLS VPN ▪ IPVN
▪ Ethernet VPN ▪ DIA
▪ VSAT
▪ Ethernet VPN ▪ L3VPN/VPRN
▪ Internet VPN ▪ VPN
▪ Managed LAN/Wi-Fi
▪ Fixed PBX ▪ DWDM
▪ Cisco Meraki ▪ MPLS
▪ SD-WAN (in development)
▪ Cloud-managed Wi-Fi ▪ Managed LAN
▪ Cloud-managed Wi-Fi
Unified ▪ Omantel audio conference
comm. ▪ email hosting
▪ Hosted conferencing
▪ Cisco Webex Teams
▪ Audio conferencing ▪ UCaaS in partnership
services
▪ Hosted SharePoint
services and file sharing with Cisco
▪ Managed video-as-a-service
(MVaaS)
Cloud and ▪Co-location
hosting ▪Cloud storage & backup ▪ Co-location and hosting
▪ Co-location
▪ Virtual and non-virtual ▪Cloud ERP ▪ Office 365 suite
▪ IaaS, PaaS, public and ▪ Co-location and hosting
private cloud ▪Disaster recovery-as-a- ▪ Cisco’s Hosted
private cloud services
service (DRaas) Collaboration Solution ▪ Cloud-based IP telephony
▪ Storage and hosted ▪ Virtual data centres
desktop office ▪ SAP Business One ▪ Storage and back-up
▪ Data centre managed
applications
▪ Cloud app marketplace services
▪ SaaS, IaaS ▪ Disaster recovery
▪ Cloud-based PoS system
▪ Robots-as-a-service ▪ SaaS and IaaS
2019142-382 | Confidential Education-as-a-service
Source: Analysys Mason Research
…security services, professional services and other services (such as IPTV)
Benchmarks of products / services for the enterprise market

Category Etisalat (UAE) Omantel Ooredoo (Qatar) STC (KSA) Zain (Kuwait)
Security ▪ Anti-DDOS service

▪ Anti-virus
▪ Managed security and ▪ Managed security
▪ Managed security ▪ DDoS mitigation
▪ Cloud-based network
monitoring and monitoring
services
security ▪ Video surveillance-as-a-
▪ DDoS mitigation ▪ DDoS mitigation
▪ Cyber-security services
service
▪ Managed security ▪ Back-up-as-a-service
▪ App, web and email ▪ email and web ▪ Incident management
▪ Cyber-security solutions
security security
(BaaS)
▪ Disaster recovery
▪ Firewall
▪ Security-as-a-service
(SECaaS)
Professional ▪ Consulting, design,
▪ System integration,
services installation and system
▪ ICT solution design, ▪ ICT solution design network integration, ▪ Fintech software
development and and delivery for the design and delivery of development through
integration
deployment healthcare, aviation, ICT solutions subsidiary FOO
▪ IT outsourcing
education and sports
▪ Business process ▪ Outsourced customer ▪ Smart-city consultancy
▪ Web and application
outsourcing sectors care and analytics through NXN
development
support
Others ▪ Electronic medical
▪ Domain and website records and
hosting ▪ Web domain registration management ▪ Critical
▪ IPTV ▪ Web hosting solution communications
▪ IT and office equipment ▪ SSL certificate ▪ IPTV ▪ Sale and leasing of ▪ Push-to-Talk over LTE
leasing ▪ TASIL analytics platform ▪ Office equipment office equipment and
▪ Online marketing ▪ IPTV leasing devices
services ▪ Payroll payment
services

As compared to benchmark enterprise products / services, Awasr’s current portfolio

is more focused on connectivity services and lacks non-connectivity services
Options for serving the enterprise market More relevant for large enterprises Awasr’s current focus
Category Benchmarks - products / services Awasr’s offerings Gap in Awasr’s offerings

Connectivity ▪ Fixed broadband ▪ IPTV/OTT ▪ Fixed broadband ▪ IPTV/OTT N/A
Dedicated connections Dedicated connections N/A
▪ Ethernet/FLL ▪ IP VPN/MPLS ▪ Ethernet/FLL ▪ IP VPN
▪ SD-WAN ▪ Managed Wi-Fi ▪ SD-WAN ▪ Managed Wi-Fi
Fixed voice Fixed voice Fixed voice
▪ VoBB ▪ IP-PBX ▪ VoBB ▪ Fixed PBX
▪ Fixed PBX ▪ IP-PBX
▪ Mobile voice ▪ SMS/Bulk SMS N/A ▪ Mobile voice ▪ SMS/Bulk SMS
▪ Mobile broadband ▪ Mobile broadband
+ unified communications ▪ Hosted voice or UCaaS solution N/A ▪ Hosted voice / UCaaS solution
+ curated set of basic Cloud services Cloud services Cloud services
solutions (such as Cloud ▪ SaaS - Business Applications such as Office365, N/A ▪ SaaS - Business Applications such as
and Security) backup / storage, ERP Security services Office365, backup / storage, ERP
▪ IaaS ▪ Anti-virus/malware ▪ IaaS
▪ PaaS ▪ PaaS
Security services Security services
▪ Anti-virus/malware ▪ Anti-virus/malware
▪ Network security / managed security ▪ Network security / managed security
+ wider range of solutions ▪ Consulting services N/A ▪ Consulting services
(such as sophisticated ▪ Migration to cloud, system integration & ▪ Migration to cloud, system integration &
cloud, hosting and management support management support
consulting services) ▪ Co-location and hosted data centres ▪ Co-location and hosted data centres
▪ Vertical market specific solutions ▪ Vertical market specific solutions
▪ Remote IT support and CCaaS ▪ Remote IT support and CCaaS

Apart from providing basic connectivity services, Awasr could consider adding non-
connectivity services such as unified communications, cloud and security services
Options for serving the enterprise market More relevant for large enterprises Awasr’s current focus
Category Benchmarks - products / services Pros Cons

Connectivity ▪ Fixed broadband ▪ IPTV/OTT
Dedicated connections
▪ Ethernet/FLL ▪ IP VPN/MPLS ▪ Simple-to-explain service proposition ▪ Limited differentiation and subject to strong
▪ SD-WAN ▪ Managed Wi-Fi ▪ Close to Awasr’s core proposition price competition
Fixed voice ▪ No risk of competing with channel partners
▪ VoBB ▪ IP-PBX
▪ PBX
▪ Mobile voice ▪ SMS/Bulk SMS
▪ Offer fixed-mobile convergence products ▪ High competition in the market
▪ Mobile broadband
+ unified ▪ Builds on the traditional core competency ▪ Limited revenue upside
communications
▪ Hosted voice or UCaaS solution
▪ Fits well with the capabilities of Awasr ▪ Requires training for sales/support
+ curated set of Cloud services
basic solutions (such ▪ SaaS - Business Applications such as
as Cloud and Office365, backup / storage, ERP ▪ Focus remains on products (relatively ▪ Very low margin on SaaS services
Security) ▪ IaaS simple) ▪ Customers’ apprehension toward cloud
▪ PaaS ▪ Increased revenue potential ▪ Requires training
Security services ▪ Possibly reduces churn ▪ Online sales channels typically unsuccessful
▪ Anti-virus/malware
▪ Network security / managed security
+ wider range of ▪ Consulting services ▪ Captures a larger share of the value ▪ Complex for Awasr given current capabilities
solutions (such as ▪ Migration to cloud, system integration & ▪ Moves away from telecoms price ▪ Could pressure margins
sophisticated cloud, management support competition ▪ Operators are not typically seen as IT providers
hosting and ▪ Co-location and hosted data centres ▪ IT is increasingly software and provided as ▪ Direct channel requires lots of training and
consulting services) a managed service online channels are typically unsuccessful
▪ Vertical market specific solutions
▪ Remote IT support and CCaaS ▪ Partners could market Awasr’s connectivity ▪ Channel partners have other IT providers

For GTM strategy of connectivity services, Awasr could evaluate options for proposition
development, packaging, marketing and sales
Preferred approach
Go-to-market strategy for connectivity services
1 2 3 4
Proposition development Packaging Marketing Sales
Common for
Market better customer
SMEs and large Fixed-mobile convergence
experience
enterprises
Partner with More focus More focus

Develop on Educate on the benefits of Mostly Mostly
SMEs technology on on
your own enterprise connectivity direct indirect
companies productised customized
Partner with More focus More focus

Large Develop on Mostly Mostly
technology on on
enterprises companies
your own
productised customised
direct indirect

Similarly for GTM strategy of non-connectivity services, Awasr could evaluate options
for proposition development, packaging, marketing & sales
Preferred approach
Go-to-market strategy for non-connectivity services
1 2 3 4
Common for
experience
enterprises
Proportional
mix of direct
Partner with More focus More focus and channel
Develop on Educate on the benefits of Mostly
SMEs technology on on partners
your own enterprise connectivity indirect
companies customised customised (such as
value-added
resellers)
More focus
on channel
partners
Partner with More focus More focus Enhance brand recognition by
Large Develop on (such as Mostly
technology on on partnering with well-
enterprises companies
your own
productised customised established ICT companies
value-added indirect
resellers
and system
integrators)

1 Several operators globally have explored partnerships with ICT players to expand
their portfolio of services in the enterprise segment
Enterprise-focused subsidiaries / Acquisition and integration of small ICT
Partnership with ICT players
business units players
Partnered 30+ advisory and SI players Setup dedicated unit, ‘Etisalat Digital’ in Has investments in enterprise
and ~40 software and hardware players 2016 to work on data centers, cloud, businesses, data centers (~80% stake
to provide ICT solutions cyber-security, IOT, etc. in Oman Data Park) and BPO services
(~45% stake in Infoline)
Partnered with technology solutions Has dedicated a business unit to manage
developers and incubated 4 startups in Strategic investment in ICT player, NXN,
the enterprise business
AI/blockchain to deliver joint projects which supports the deployment of end-
to-end smart-city solutions
Partnered with Microsoft, Amazon and Has portfolio of subsidiaries as part of In 2006, acquired Smart421, that has
Huawei to offer cloud-based services in its enterprise business that provides established its capabilities in software
Kuwait and across MENA core connectivity, specialized ICT and infrastructure
services, outsourced customer care and
Partnered with AWS (2010), Azure data centres Acquired multiple players in software
(2016) and Google Cloud (2018) to
development and SAP products to enter
develop cloud capabilities
healthcare and banking verticals
Has enterprise focused business unit
Partnered with AWS and Azure to offer with 5 data centers in Qatar Built STC solutions through merger of ICT
IaaS applications for large enterprises players including Awa IT services and
Arabian Internet and Communications
Partnered with ICT vendors; hosts
cloud-based ERP, security and Acquired ~20% stake in MEEZA which
managed connectivity in partnership provides managed cloud and security
Atos, Dell, Microsoft, etc. solutions using its 2 data centres
Given Awasr’s focus on asset-light business model, it could explore partnerships with ICT players to
develop its product portfolio for the SME and large segment

2 Fixed–mobile integration takes a more value-based approach to bundling, providing

features that other UC providers cannot yet replicate
– Fixed–mobile integration has considerable potential to drive ▪ Elements of fixed–mobile integration for enterprises
the take-up of bundled services. It is natively a fixed–mobile
▪ Description: integration of fixed and mobile
bundle (it does not depend on third-party apps) which, handsets with the potential to extend to
importantly, is a feature that alternative UC providers such as other end-points like laptops and tablets
8X8 and Vonage cannot yet replicate ▪ Benefits for enterprises: unified
Integrated communication experience through features
– Fixed–mobile integration can be a compelling means of voice features such as having a single number for multiple
encouraging the take-up of bundled services. Benefits such as devices, having multiple numbers for a single
having a single number, simultaneous ringing, single voicemail device, single voicemail and simultaneous
ringing
and sharing minutes/data across devices are features that
enterprises will value and can incentivise them to take bundled
services ▪ Description: IP-based telephone system
delivered and managed by the operator
– Operators can also use fixed–mobile integration to nudge ▪ Benefits for enterprises: lower hardware,
enterprises to use UC features or to simply provide a more Cloud PBX maintenance and support costs;
comprehensive UC service as the standard approach to fixed– considerably reduces the required technical
capabilities enterprises need to get
mobile bundling for SMEs. Getting enterprises onto UC
advanced PBX features, such as routing calls
applications can generate familiarity with the features and between fixed and mobile handsets
create upselling potential for more advanced UC features
▪ Description: a simple application, accessible
– This approach has the potential to get enterprises to acquire
across fixed and mobile devices. Basic UC
fixed and mobile voice packages. Discounts could then be used features should be free
to encourage them to purchase fixed connectivity for a more UC application ▪ Benefits for enterprises: the application can
complete fixed–mobile bundle generate a uniform service across devices.
Enterprises receive access to basic UC features,
such as voice, chat, presence and file sharing

2 Multiple operators have used a customised approach for offering ICT products
bundled with connectivity for SMEs
Key operator examples
Customised products
▪ Rather than pursue a plan to build a full stack telco and IT solutions Orange developed a
largely network-independent digital solutions platform
(Spain)
▪ X by Orange, a unit that offers digital services to SMEs, currently aims to compete based
on its feature set and customer experience rather than on price
▪ It highlights its flexibility, simplicity and reliability and offers free service trials
Bundled connectivity with

ICT solutions ▪ Omantel offers ‘Office Out of the Box’ packages, bundling fixed broadband, mobile voice,
SMS and broadband and ICT services (such as Office365 and web hosting). SMEs are
allowed to choose from a range of options (packages) from each of the three categories –
fixed broadband, mobile voice and broadband and ICT services
▪ TDC bundled connectivity and ICT services for SMEs, based on unified communications
(UC) services – it bundles its UC services with other ICT services at no additional cost
– The objective is to migrate SMEs onto converged and premium packages, to boost
ARPU and reduce churn
▪ Vodafone offers ICT solutions specific to verticals bundled with broadband connectivity to
target SMEs in its key markets such as UK and Spain

3 Prominently highlighting high NPS on marketing communications may lead to

enhanced brand positioning and opportunities to up-sell and cross-sell
Build the brand image Operator example
▪ Enterprises that are dissatisfied with their core

telecoms services do not buy additional ICT
services, such as security or cloud services, from
their telecoms operator
▪ For example1, only 7% of SMEs that were
dissatisfied with their operator were buying
security solutions from it, compared to 14% of
those that were satisfied
Superior customer service positioning
compared to competitors
High cross-sell and
customer retention
Prominently highlights NPS score on website
Note: 1. Based on the results of a survey of 1600 enterprises in eight countries

3 Differentiating enterprise broadband packages from residential packages using

superior SLAs help migrate SMEs from residential packages
Customer support ▪ Customer support via a separate phone number for enterprise customers (and through a dedicated team of enterprise
broadband specialists if possible), example –
Offers 24/7 customer support
Fault repair times ▪ Fix enterprise broadband problems more quickly than those related to residential broadband, example –
Intervenes within 8 hours of a problem being Offers guaranteed broadband repair within 5 working
reported for enterprise broadband and within hours of a problem being reported in all enterprise
(France) 24 hours for residential broadband packages apart from the entry-level one
Guarantees ▪ Offer guaranteed upload / download speeds, as well as compensation schemes for downtime, example -
Lists guaranteed download and upload speeds for each of its enterprise packages
Implements price reductions or provides credit allowance for prolonged service interruptions (subject to certain conditions)
Wireless failover ▪ Supply wireless failover with their enterprise broadband products to counteract internet service interruptions that can
cause damage to businesses, example -
Offers free wireless failover on its fibre enterprise Offers wireless failover at an additional fee with all of its
broadband products enterprise packages
(France)
Differentiated superior SLAs needs to be appropriately highlighted in marketing materials, to make the benefits of choosing enterprise over
residential broadband clear to SMEs

3 HKBN uses acquisition and partnership with leading brands to grow market share in
the enterprise segment
Acquisitions and ICT partnerships to foster growth HKBN enterprise revenue (HKD million)
▪ Core connectivity market: acquired NWT in 2016; and WTT in Due to NWT 1,379
2018 to become the 2nd largest enterprise provider in HK integration
▪ Adjacent ICT market: Focuses on providing cloud, systems
1,208
integration and security solutions
▪ ICT acquisitions: ICG, a leading Managed Service Provider
(MSP) of Cloud powered solutions (May 2018); HK systems
integrator and cyber security specialist Jardine OneSolution
(Aug 2019)
▪ ICT partnerships: 811
– Cloud players: First in Hong Kong to partner Microsoft to
bring Microsoft 365 and Office 365 video-conferencing
solutions. HKBN launched a special enterprise broadband
bundle with Microsoft's collaboration suite licences. Also 476
an Amazon Direct Connect partner 423
– Conferencing solutions: Cisco suite of products 371
– Security solutions: Advanced threat protection technology
and management tools powered by McAfee
Key ICT partners
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
2019142-382 | Confidential Source: Company website, Telegeography, Analysys Mason Research, News articles
3 Partnering with well-established system integrators can help develop brand

recognition/trust and reduce the time to market
Criterion
Brand
Pro
Enhance the brand recognition through well-known
+ Operator example
recognition / system integrators and develop the trust of large
trust enterprises
Time to market Deliver a credible end-to end service for managed ▪ A joint venture with 750 of Vodafone’s staff
cloud and connectivity much more rapidly than by working in the B2B market transferring to
building its own capabilities
IBM (SI capabilities transferred to IBM)
Level of risk If not successful, exposure will be much more limited ▪ Vodafone leverages IBM’s ICT capabilities,
compared to investments in acquisitions to build
capabilities in cloud and SI such as cloud experience
Focus Would allow to focus resources on the core

connectivity business. As a challenger in the fixed Key benefits
market, Awasr still has growth potential in connectivity
Criterion
Future
Con
Risk of not gaining the expertise to take a greater role
– Knowledge sharing from the mix of expertise should fill gaps in
existing capabilities
opportunities in this product/service category in the future

Improve the quality and increase the value-addition of enterprise
Collaboration Risk of failure to accommodate different company products/services
cultures and ways of work, especially if Awasr has
limited control over the partner’s roadmap
Fit for target The tie-up may not provide a good fit for SMEs that do not Develop new innovative ICT solutions
segment want to deal with an organisation of the scale of a large
partner. Awasr may need additional local partnerships
Partnering with well-established system integrators can help enhance brand recognition/trust and reduce
time to market, especially in the enterprise segment
2019142-382 | Confidential Source: Business Insider, The Register, Silicon Republic, Telecoms.com, CIO, Analysys Mason
3 SMEs need to be educated on the additional benefits of enterprise broadband

4 packages and ICT services; direct sales channels are the most preferred channels
Percentage of SMEs purchasing their fixed service, by channel 1
Operator example
Direct sales channels
Indirect sales channels
44%
▪ Swisscom has made effective use of retail stores to target

SMEs. It has three fundamental assets that help it to provide
this product portfolio to SMEs
– A nationwide network of 40 “SME centres” with small
business professional advisers. SMEs can come into the
store to get advise on their ICT requirements and discuss
19% 20%
service options. They handle all the enquiries and on-site
17%
installations
– This is a people intensive business. Swisscom has invested in
acquiring enough technicians to support SMEs both remotely
and on-premises when needed
▪ It also experimented with an online marketplace where SMEs
Operator Operator website Operator Local / global could go to a platform containing a few hundred applications
sales person retail store technology and purchase any of interest to them. However, the digital sales
or call centre consultants channel has also been of little success to operators
and SIs
Direct sales channels such as retail stores, website and operator call centre are the most preferred sales channels for SMEs; A dedicated
team of technicians and business professional advisers can help educating SMEs on their ICT needs
Note: 1. Based on a survey of 1555 SMEs

4 WTT in Hong Kong was able to grow strongly in the SME space due to its focus on
direct sales and productised approach
WTT sales organisation Hong Kong SME fixed enterprise revenue market share %
100% 100%
1% 2%
SME sales Total sales force of >400 selling 13% 15%
force productised solutions to SMEs
10%
16%
Retention & Market share increase for WTT

Acquisition
Upsell
76%
67%
▪ SME products sold were primarily productised offerings – new products

and services that could be replicated followed a structured
“Productisation” go-to-market approach
▪ WTT had an established sales force of >400 employees across Hong
2011 2015
Kong (direct sales) and China (telesales), all of whom are well-trained
and dedicated to serve the complex needs of enterprise customers
▪ Upselling was primarily carried out by WTT’s call-centre employees HKT WTT HKBN Hutchison
based in Guangzhou and Jiangmen
2019142-382 | Confidential Source: Operator website, Analysys Mason

4 Operators have also adopted a mix of direct and indirect sales channels – channel
partners and system integrators to sell ICT services to enterprises
▪ Indirect sales accounted for 83% of TalkTalk’s enterprise revenue in 2017/2018; customers were indirectly reached
through partners, wholesalers, carriers and system integrators
▪ Virgin Media Business sells through indirect channels including resellers and IT system integrators. It also sells directly to
larger enterprises and the public sector, and has met with success in targeting local government
▪ KPN acquired RoutIT, an ICT reselling networking of around 1500 partners, to increase its ability to sell ICT solutions
– RoutIT has a university where it trains all of its reselling partners
▪ KPN also recruits larger resellers who have qualifications and certifications in selling and supporting ICT solutions
– KPN provides online courses on its products and sales techniques
▪ KPN also changed its incentive structures and trained resellers and its own sales people to sell ICT services
– Around 30% of bonus calculations are based on NPS, in order to drive customer satisfaction – a critical metric in
operators’ ability to sell ICT solutions
– Incentive structures have shifted from connectivity services to ICT solutions. There are few incentives for selling only
connectivity services
– KPN also got rid of sales personnel who could not adapt to the new solutions and incentive structures
2019142-382 | Confidential Source: Operator websites, Analysys Mason

We can evaluate the various product/service categories based on the criteria of size
of opportunity, cost/investment and ease of implementation
Assessment of product/service categories – To be filled by Awasr’s team
Products / services Size of opportunity (2023) Cost/investment Ease of implementation Overall
Fixed broadband
Already offered / under development
Dedicated
Connectivity
connections
• Large market demand

Fixed voice • ………………….. • …………………..
• Crucial to bundle with FBB
• Large market demand

Mobile • …………………. • ……………………
• Crucial to bundle with FBB
Hosted voice or
• • •
UC
Low revenue opportunity ………………….. …………………..

UCaaS solution
Cloud services
• Reasonable market
• ………………….. • …………………..
solutions
demand
Basic
Security services • Limited market demand • ………………….. • …………………..
Sophisticated cloud • Reasonable market

• ………………….. • …………………..
solutions demand
Wider range of
solutions
Co-location and
hosted data centres
• Sizeable market demand • ………………….. • …………………..
Consulting /
managed services
• Low revenue opportunity • ………………….. • …………………..
Least Most
For GTM strategy of connectivity services, Awasr could evaluate options for proposition
development, packaging, marketing and sales for SMEs & large enterprises
Go-to-market strategy for connectivity services To be filled by Awasr’s team
1 2 3 4
Common for
experience
enterprises
Productised
Customised
your own
Develop
Indirect
Partner
Direct
Educate on the benefits of
SMEs
enterprise connectivity
Productised
Customised
your own
Develop
Indirect
Partner
Large
Direct
enterprises
Key
your own
Develop
Partner
Denotes that the proposition of partnering with technology players is more preferable, for example.

For GTM strategy of non-connectivity services, Awasr could evaluate options for
proposition development, packaging, marketing & sales for SMEs & large enterprises
Go-to-market strategy for non-connectivity services To be filled by Awasr’s team
1 2 3 4
Common for
experience
enterprises
Productised
Customised
your own
Develop
Indirect
Partner
Direct
Educate on the benefits of
SMEs
enterprise non-connectivity
Productised
Customised
your own
Enhance brand recognition by

Develop
Indirect
Partner
Large
Direct
partnering with well-
enterprises established ICT companies
Key
your own
Develop
Partner
Denotes that the proposition of partnering with technology players is more preferable, for example.

Understanding Awasr
MVNO
Next steps
Annexure
There exists an addressable market of 309K subscribers for Awasr outside of OB

network split by three technologies – majority of demand lies with FWA
FBB connections opportunity in 2023 excluding OB connections (‘000)
Driven by Omantel’s rollout

of FTTH beyond OB network
coverage across Oman Driven by Omantel’s and
Ooredoo’s FWA network
309
across Oman
33
Driven by Omantel’s ADSL

network across Oman
142
133
Total FBB market Omantel own FWA ADSL

excluding OB connections FTTH connections

Awasr could choose one or multiple technologies to target market not addressed by
OB network – each technology presents strategic options for Awasr to choose from
Strategic options by technology for Awasr to target market not targeted through OB network
Fixed broadband
Build Partnership Other requirements
technology
• Build own infrastructure either • Partner with Omantel to get • Increase in sales force and
as: access to its fibre in areas where branding outside of OB
• Access network leveraging OB is not present coverage area
FTTH the nearby OB network as a
backbone
• Full infrastructure including
the backbone
• Acquire the relevant spectrum • Partner with Omantel or Ooredoo • Increase in sales force and
and rollout own infrastructure to get access to their FWA branding outside of OB
network coverage area
FWA • Additional efforts in terms of
developing and marketing FWA
proposition
• Not relevant • Partner with Omantel to get • Increase in sales force and
access to its ADSL network branding outside of OB
coverage area
ADSL • Additional efforts in terms of
developing and marketing ADSL
proposition

Selection of the identified strategic initiatives could be driven by evaluation of each

on three parameters – size of opportunity, costs, and ease of implementation
Assessment of strategic options to drive growth in residential market – to be reviewed and validated by Awasr team
Strategic option Size of opportunity Cost/investment Ease of implementation Overall
Build own FTTH

• Opportunity to drive fibre • Rollout of capex intensive • Complex and time intensive
coverage and penetration FTTH network process
FTTH
Partner with Omantel • Addressable: 30-40K subs; • Similar to the current • Striking partnership will be
for FTTH share likely to be low investments tough
Build own FWA

• Addressable: 150K subs; • Rollout of capex intensive • Complex and time intensive
share likely to be very low network + branding process
Partner with Omantel • Addressable: 150K subs; • Deployment of active • Striking partnership will be
FWA
for FWA share likely to be low equipment + branding tough
Partner with Ooredoo • Addressable: 150K subs; • Deployment of active • Striking partnership will be
for FWA share likely to be low equipment + branding tough
• • •
ADSL
Partner with Omantel Addressable: 150K subs; Deployment of active Striking partnership will be
for ADSL share likely to be marginal equipment + branding tough
Least Most
Understanding Awasr
MVNO
Next steps
Annexure
For going ahead with MVNO, Awasr would have to make two key strategic choices –
type of MVNO business model and target segment
Strategic choices for MVNO
1 2
Type of MVNO
Target segment
business model
Branded Service Fixed Mobile

Light MVNO Full MVNO Enterprise
reseller provider consumer consumer
Awasr has already been awarded a

license for light MVNO
Awasr could choose from a number of MVNO business models ranging from
1
Branded reseller to a Full MVNO
Types of MVNO business models
Branded Network Inter Application & Billing & Handset Marketing &
Radio access Customer care
reseller routing connection service collection management sales
Service Network Inter Application & Billing & Handset Marketing &
Radio access Customer care
provider routing connection service collection management sales
MVNO
Network Inter Application & Billing & Handset Marketing &

Light MVNO Radio access Customer care
routing connection service collection management sales

Full MVNO Radio access Customer care

MNO Radio access Customer care
Managed by host MNO Managed by MVNO

The Light MVNO model offers the benefit of reasonable control over service and can
1
be implemented with limited/medium investment
Control over
Investment MVNO responsibility
service
Licensed
Increasing control over service ……

▪ Sells pre-packaged services
…….. but increasing investment

Reseller Low Low
▪ Offers distinctive brand and controls

Service Provider
customer care
Low Medium
▪ Higher degree of control over tariffs

MVNO Light and service design.
Medium Medium ▪ Difficult to change host network
Full ▪ Full control over all aspects of service

MVNO design, SIM MNC and implementation
Medium High High
Awasr has already been awarded a

license for light MVNO
Awasr could use the MVNO offering solely for enterprise customers, or it could
2
expand the scope to include fixed and mobile consumers as well
Potential options for target customer segments
Enterprise only
Increasing size of opportunity……
…….. but increasing investment

Enterprise + Fixed consumer
Enterprise + Fixed consumer + Mobile consumer
Mobile services help penetrate the fixed enterprise segment as a significant share
2
of enterprises purchase fixed and mobile services from the same provider
Percentage of SMEs purchasing fixed & mobile services from the
same provider1
▪ A significant share of enterprise customers purchase fixed
The differences by country are partly
structural. The UAE only has two
and mobile services from the same provider
providers, both of which offer fixed and
mobile services. The UK and USA have a – As many as 39% of SMEs use different providers for their
lot of providers, many of which have fixed and mobile services (see chart on the right) due to the
historically only provided one service benefits of using a single provider for all telecoms services
▪ Operators can encourage the take-up of bundles and capture a

greater share of their customers’ spend
▪ Bundles may also help to reduce churn and provide a base for
selling other IT services, as operators’ chances of selling
security, cloud and other services improve if they are already
providing all telecoms services.
MVNO can also be used to offer fixed-mobile convergence and

help Awasr capture a larger share of the fixed enterprise
market in Oman (OMR126 million by 2023)
Further, they would help capture a share of the enterprise and consumer mobile
2
markets, which are expected to reach OMR64 million and OMR452 million by 2023
Enterprise mobile market service revenue in Oman (OMR million) Consumer mobile market revenue in Oman (2018-2023)
+1%
64 +2% 452
62 63 444
61 60 61 434
421
411
402
2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023
X% CAGR (2018-23) X% CAGR (2018-23)
We can evaluate the various target segment options based on the criteria of size of
opportunity, cost/investment and ease of implementation
Assessment of potential options of target segments for MVNO - to be filled by Awasr team
Products / services Size of opportunity Cost/investment Ease of implementation Overall
• Help increase penetration of

fixed enterprise market
Enterprise only • Sizeable opportunity in terms
of revenue from enterprise
mobile market
• Offering fixed-mobile
convergence would make the
Enterprise + product portfolio more
Fixed consumer attractive and increase share
of gross adds
• Would help reduce churn
Enterprise + • Offering MVNO services to all

mobile consumers could help
Fixed consumer +
capture a small share of the
Mobile consumer mobile market
Least Most
Understanding Awasr
Next steps
Annexure
Next steps 140
We propose to follow the below process over next couple of weeks to finalize the
strategic initiatives for Awasr
Workshop w/c 29 September w/c 06 October
▪ Analysys Mason to present the list of ▪ Division Heads to evaluate and assess ▪ Analysys Mason will process the inputs
strategic options for Awasr supported by each of the strategic options based on received to finalize the shortlisted
background analysis the evaluation framework options and present it to the Awasr’s
team
▪ Analysys Mason to provide a framework
▪ Analysys Mason and the finance team
will conduct separate meetings with
for Awasr team to evaluate and shortlist
each division heads and their respective
options
teams
▪ Awasr team to contribute in terms of ▪ The objective will be:
validating the analysis done by Analysys
– to clarify any questions and
Mason and evaluating the options based
provide relevant details
on the proposed framework
– to get each division’s
assessment and evaluation of
each of the strategic option
based on the criteria
▪ Division Heads to provide inputs to the
Finance team to update the business
plan
Understanding Awasr
Next steps
Annexure
Case studies – Residential
Case studies - Enterprise

Definitions
Case study 143
Bahnhof offers a unique selling point that emphasises on providing privacy and
security
Country Market background Operator Technology Subscribers Area of focus
▪ 91.5% household BB penetration (1Q19) ▪ FTTH/B ▪ 332 000 ▪ Active in the ISP segment since 1994,
▪ 70% FTTH/B, 17% cable, 15% xDSL under (1Q19) Bahnhof operates broadband internet
▪ 3 integrated players with 70% subs share, Telia’s open ▪ ~10% and enterprise ICT services
Sweden and 2 fibre-only retail service providers fibre access market share
▪ Market ARPU: USD30 network
▪ Emphasis on privacy and security Performance

– Bahnhof provides various types of VPN and encryption services as well as other security
services to create a secure internet for subscribers customers in various ways, whether it is Bahnhof signed a 15-year agreement
private individuals, authorities or companies. with Telia’s wholesale unit Skanova for
– All broadband connections comes with free basic VPN services, that protects the device additional fibre backbone capacity,
through replacing IP address, and providing connection via an unencrypted PPTP. In securing and/or expanding the
addition, Bahnhof also offers free antivirus software for 3 months for new subscribers availability of capacity in ~57 cities
Residential strategy
9.5%
400
Bahnhof SAFE – anti-virus software Bahnhof branded wireless router
with telephony / SIP support 350 319
6.8%
Subscribers (‘000)
300
250 4.5%
208
200
150 125
100
50
0
2013
2014
2015
2016
2017
2018
Subscribers Market share
Offer emerging products

2019142-382 | Confidential Source: company website, Telegeography, Analysys Mason Research, news articles
Case study 144
HKBN uses aggressive pricing and quad-play offering to grow market share in the
residential segment
▪ 114% household BB penetration (1Q19) ▪ FTTH/B ▪ 836 000 ▪ Predominantly focused in residential
▪ 70% FTTH/B, 25% xDSL, 5% cable, ▪ ~30% space, but expected to increase focus in
▪ Four player market market share enterprise market due to acquisition of
Hong Kong ▪ Market ARPU: USD21 enterprise network competitor, WTT in
SAR 2018
▪ Aggressive pricing strategy for customer acquisition Performance

– In the second half of 2015, HKBN started a price war in the residential broadband market to
attract more residential broadband subscribers ARPU declined in 2016-2017 as
subscribers are bound to two-year
– After adding 100,000 subscribers (or ~2% in subscriber share), it increased its tariffs in
contracts signed under the
2017 but have maintained a stable customer base despite the price hike promotional prices offered in 2015
ARPU (USD)
▪ MVNO launch in 2016 with focus on providing ‘value for money’ quad-play services 40
23 21 21 22
– Goal to provide unprecedented household savings and service convenience to disrupt the 20
legacy broadband, fixed-voice, content and mobile standalone segments 0
– Launch price for quad-play plan bundling mobile, fixed-line telephony, fiber broadband and 2015 2016 2017 2018
OTT services started at prices as low as HKD248 (USD32) per month. It was estimated to Successful customer acquisition from
cost a typically subscriber HKD1000 to subscriber to all four services from other operators aggressive pricing strategy
1,500
30% 32% 32% 31%
1,000 780 861 868 861
500
0
2015 2016 2017 2018
Competitive pricing and quad play

Case study 145
TalkTalk transitioned to selling non-core products, such as TV, in a capital light way,
through partnerships with OTT video providers
▪ 91.5% household BB penetration (1Q19) ▪ xDSL ▪ 3.4mn ▪ Integrated provider with residential and
▪ DSL 78%, 20% cable, 2% fibre ▪ FTTH (1Q19) enterprise focus
▪ 4 integrated players with ~95% subs ▪ ~17%
UK share market share
▪ Market ARPU: USD25
▪ OTT video partnerships to develop content portfolio in a capital-light manner Performance

– TalkTalk transitioned to selling non-core products, such as TV, in a capital light way, through
Increased ARPU as a result of
partnerships with OTT video providers adoption for higher bandwidth services
– Between 2018-2019, TalkTalk inked partnerships with major SVOD providers Amazon Prime
ARPU (USD)
Video to provide their services via the TalkTalk set-top box. It is also the first operator in UK 20 15 13 13
16
to partner Rakuten TV and Hopster (preschool learning and entertainment) 10
– This enhances TalkTalk’s TV offering, which already includes premium content from Sky, BT
0
Sport and Netflix 2016 2017 2018 2019Q1
Increase in subscribers due to focus on

fixed connectivity
Subscribers (milliong)
– This allows TalkTalk to focus on fixed connectivity, unencumbered by having to defend 6 12.0% 11.9% 12.6% 12.7%
premium TV or mobile
4 3.1 3.1 3.4 3.4
0
2016 2017 2018 2019Q1
Video and TV
Case study 146
Jio has invested heavily in acquiring content players, creating a robust content
ecosystem and has bundled the offerings with Jio Fibre plans
Jio has invested heavily in creating a content ecosystem to create a long term strategic differentiator
Investment / acquisition of content players

By investing and acquiring content players Jio is creating a
sustainable content ecosystem offering strategic differentiator
• Invested INR 4.1 bn to acquire 25% stake in Balaji
Telefilms
• Content creation for JioTV and JioCinema JIO’s content Music Videos News/Books
ecosystem
• Acquired Saavn, leading online music player for

INR 6.7 bn
• The music OTT player is merged with Jio music
offering seamless customer experience
• Acquired 5% equity stake in Eros International

• Plan to co-invest INR 10 bn to co-produce content
for Indian consumers
Co-exclusive agreement and partnerships
• Jio has signed up five year cricket content Opportunity to monetize the currently free content, as
agreement with Star making Jio co-exclusive
customers get habituated in the future, and thereby
partner of digital rights with Hotstart
increase customer stickiness and ARPU
• Jio has signed up alliances with TV and film
producers to offer movies that can be seen by
subscribers on the same day they debut in cinemas
Video and TV
2019142-382 | Confidential Source: Analysys Mason, Nokia Mbit report, Press release, HDFC securities, company websites
Case study 147
StarHub successful partnership with Google contributed to a turnaround in

subscriber acquisitions in 2018
▪ 94.1% household BB penetration (1Q19) ▪ FTTH/B ▪ 530 000 ▪ Integrated operator, with both residential
▪ Fibre-only NBN network1 (Jun 2018) and enterprise focus
▪ 3 incumbent OpCos (~90% subs share), ▪ ~35%
Singapore and 8 challenger OpCos market share
▪ Market ARPU: USD33
▪ Using exclusive partnerships to enhance product portfolio for customer acquisition, retention Performance
and upselling
Stable ARPU, based on NLT (NetCo)
– StarHub had been losing subscribers due to increase competition in the fixed broadband regulated wholesale pricing
market in Singapore, with traditional Pay-TV solution no longer sufficient to attract
ARPU (USD)
customers onto its network 40 29 30 29 29
– StarHub signed an exclusive retail partnership agreement to carry Google’s suite of home 20
solutions (Google Wifi, Google Home)
0
– These products are then bundled with higher tier quad-play packages, and given to 2015 2016 2017 2018
recontracting or new customers free-of-charge to attract, retain and upsell StarHub’s
residential solutions Increase in subscribers in 2018 due to
exclusive Google Home partnership
800 34.9% 35.3% 34.7% 35.0%
600 514 514 510 521
400
Google home mini Google Wi-Fi
200
0
2015 2016 2017 2018
Smart home and quad play Subscribers Market share
Notes: (1) Shutdown of xDSL network commenced in 2017, while cable networks to shut down in Sep 2019
2019142-382 | Confidential Source: company website, IMDA, Analysys Mason Research, news articles
Case study 148
du is pursuing a digitalistion strategy to optimize its core business and catalyse

growth beyond traditional connectivity
▪ 62% household BB penetration (1Q19) ▪ FTTH ▪ 244 000 ▪ Residential and enterprise (large
▪ Mostly FTTH,< 2% xDSL ▪ ~16% enterprises and government) segments
▪ Two player market market share
UAE ▪ Market ARPU: USD115
▪ Enhance customer experience and cost optimisation through digitisation Performance

– Initiatives include simplifying website and product offering and launching a mobile app and
online shop to alleviate in-store traffic and cope with the fast subscriber growth from du’s ARPU declined from 2016, as EITC started
expansion into new residential areas in 2018 to offer nationwide broadband based on
– Using robotics to automate around 200 processes across the entire organisation, enabling a Etisalat’s infrastructure in 2015
more efficient way of working. Digitalisation efforts from automating ~20% of corporate 197 198
ARPU (USD)
200 161 134
process has resulted in an average reduction in processing time of around 70-80% per 124
transaction. This allows du to reallocate its staff from transactional support activities to 100
activities more meaningful to customers 0
▪ Growth beyond core connectivity business, through partnerships with ICT vendors 2014 2015 2016 2017 2018
– Digital Lifestyle and Innovation Division opened in 2018, to seek growth opportunities in Faster growth due to expansion
domains adjacent to traditional connectivity services into new residential areas
– Initial focus on smart home: automation, monitoring, lighting, sensors and entertainment
400 17%
– Three packages available: 1) a made-to-order custom solution, 2) a ready-to-go bundle 15% 15% 15% 16%
partnership with Fibaro and 3) a Plug & Play Smart Home products 300
217 238
Home automation Monitoring Lighting Sensors Home entertainment 200 172 184 197
100
0
2014 2015 2016 2017 2018
Smart home, digitalisation, new sales channel

Case study 149
MyRepublic Singapore’s market strategy focuses on targeting niche segments, and

looks towards MVNO launch for next residential growth momentum
▪ 94.1% household BB penetration (1Q19) ▪ FTTH/B ▪ 80 000 (Jun ▪ Residential-focus at launch in 2012
▪ Fibre-only NBN network1 2018) ▪ Developed in enterprise segment since
▪ 3 incumbent OpCos (~90% subs share), ▪ ~5% market 2016, with focus on cloud WAN, and
Singapore and 8 challenger OpCos share retail, F&B and hospitality customer
▪ Market ARPU: USD33 segments
▪ Niche target segment – Gamers Performance

– Specific packages for gamers since launch, with dedicated IP address to allow engineers to
Initial growth catalysed by gaming
set up the best custom routes for overseas game servers, reducing the latency of the
proposition, focusing on MVNO for
connection next growth spurt
– Special access to a priority 24/7 support hotline 150
– BB bundles including gaming peripheries, e.g. routers, gaming console Sony Playstation 4 5.4%
100 80
Pro and the SecretLab OMEGA gaming chair
1.7%
– Promotion that allows new subscribers on higher tier GAMER broadband packages to claim 50 0.7% 25
10
up to SGD240 to offset the cost of terminating their current broadband plan 0
2012 2014 2018
▪ MVNO launch in Jun 2018, with unique ‘value and a worry-free experience’ proposition Subscribers Market share
– Unique proposition of "boundless data" - subscribers would be put on a lower connection
speed rather than pay an additional fee or have their access cut off when they exceed their Higher ARPU due to more
monthly data quota expensive GAMER subscriptions
– Cross sell opportunities - BB subscribers enjoy bonus data when they sign up for mobile Forecast
– Allows MyRepublic to offer LTE Backup for their enterprise solutions 50 45
ARPU (SGD)
50
June 2018
30 32
0
Broadband Mobile
Customized packages MyRepublic Market Average
Notes: (1) Shutdown of xDSL network commenced in 2017, while cable networks to shut down in Sep 2019
2019142-382 | Confidential Source: company website, IMDA, Analysys Mason Research, news articles
Case study 150
Hiper is a sub-brand that targets tech savvy youth, allowing TDC entry into the
segment without diluting their main brand positioning
▪ 96% household BB penetration (1Q19) ▪ FTTH ▪ TDC: 1.3mn ▪ TDC is the incumbent integrated
▪ 33% FTTH, 33% cable, 33% xDSL ▪ Cable (50% share) operator
▪ 4 main players with 70% subs share, and ▪ xDSL ▪ Hiper: 51k ▪ Hiper is a no-frills fibre-only subsidiary of
Denmark many fibre-only retail service providers ▪ (based on (~2% share) TDC, focused on youth segment
▪ Market ARPU: USD31 location)
▪ Niche target segment – tech-savvy youths Performance

– Hiper was launched in Dec 2015, with a no
nonsense product targeted at youths who Acquisition of Hiper allowed TDC to grow
choose to stream the majority of the series, both its ARPU and subscribers in 2018
films and sports events they see instead of
relying on traditional TV channels 190 197
1,400
– Hiper providers super fast broadband at low
prices, and capable of delivering agile and 1,200 1,064

1,034
innovative products on self-developed digital 1,000 51
platforms 800
– This includes real-time updating of service
600
outages and resolution status on their 1,013
website to better inform customers on 400
operational issues 200
0
▪ TDC uses sub-brands to target specific segments without diluting their main brand positioning 2017 2018
– TDC’s main brand, YouSee is a quad-player provider with a family focus
Other TDC susbcribers
– TDC acquired Hiper and added it to its sub-brand portfolio in Oct 2018
– This follows TDC’s strategy of launching sub brands or acquiring competitors to target Hiper subcribers
specific segments without diluting their main brand positioning ARPU
Customized packages
Case study 151
Comcast is using Wi-Fi as the basis for a number of

Comcast
additional services including connected home security
Comcast launched xFi for its broadband clients in May 2017. xFi is Components of Comcast’s home Wi-Fi strategy
a way of managing the home Wi-Fi network that is accessible via
an app, online portal or Comcast’s X1 voice remote.
Feature Description
xFi offers features that are common to other operators such as
parental access control and the ability to troubleshoot issues Partnerships to resell third-party- No
without calling customer service. Comcast is also seeking to branded mesh Wi-Fi network
hardware
continually add new functionality to the app and in December
2018 announced that when customers added multiple devices of
Advanced Wi-Fi hardware including Yes – Comcast xFi Pods
the same type to their home network a new xFi feature would own-branded mesh Wi-Fi
automatically import the names given to the different devices.
Operator-branded app for home Wi- Yes – xFi app
Comcast’s xFi platform allows control of different services Fi management
However, the functionality of Comcast’s platform goes beyond
Offer professional Wi-Fi installation/ No
that offered by other fixed broadband operators. The xFi platform advice service
allows users to control Comcast’s smart home automation
service. At the start of 2018, Comcast began offering built-in Service-level guarantees for Wi-Fi No
connected home automation functionality in its more advanced
routers for free. The xFi app allows for control of smart home
Additional services based around Yes – connected home (including
devices and the home network. Wi-Fi security), Wi-Fi part of MVNO,
homespots
Comcast also launched its connected home security service in
January 2019. xFi Advanced Security protects all connected
devices including those that cannot run antivirus software.
Importantly, the service requires no additional hardware or
software, and notifications are sent through the xFi app.
Case study 152
Orange has increased its share of higher-value customers in

Orange
its fixed broadband base thanks to Wi-Fi based differentiation
Orange’s Ma Livebox application includes a range of Wi-Fi-related Respondents who cited routers and service reliability as factors
functionality such as Wi-Fi performance optimisation, the ability to that are important in fixed broadband packages, by operator,
set up the home Wi-Fi network, a guest network, internet access France, Analysys Mason’s Connected Consumer Survey 20181
control and visibility functionality. Orange also offers a Wi-Fi
installation service – for EUR89 a technician makes a diagnosis 60%
of Wi-Fi coverage in the home and connects the devices.
50%
Results: positive indications for Orange
Percentage of respondents
One indication of the success of Orange’s strategy is the take-up 40%
of its higher-value fixed broadband offers, which have better Wi-Fi
equipment. Orange only launched its Livebox Up and Livebox fibre 30%
offers in October 2018 and they replaced the Zen, Play and Jet
20%
offers. Only the Play and Jet packages included the latest Livebox
4 CPE. The proportion of customers taking the Play and Jet offers
10%
grew over time. At the end of 2017, 43% of retail broadband
customers were on the Play and Jet high-end offers compared 0%
with 40% at the end of 2016. The growth was due to the superior
Orange
Bouygues Telecom
Numericable/SFR
Free
Wi-Fi offer in the higher-value tiers but also because the
expensive packages included other improved features such as
higher speeds.
According to Analysys Mason’s Connected Consumer Survey
2018, Orange fared well in terms of the low number of customers
who wanted a “new and better router” (see Figure 9). Only 13% of New and better router
Orange customers gave this reason compared with 17% in France Greater service reliability
as a whole and 22% across all countries in the survey.
1Questions: “Which one of the following factors would most attract you to a new fixed broadband package?” and “How could your
current plan be improved?”; n = 909.
Case study 153
BT is using Wi-Fi as a prominent part of its fixed broadband

BT
packages and offers a Wi-Fi service-level guarantee
BT is placing home Wi-Fi at the heart of its fixed broadband Components of BT’s home Wi-Fi strategy
strategy. BT’s home Wi-Fi initiatives build upon the operator’s
strong presence in the public Wi-Fi market as well as its
pioneering Wi-Fi homespot deployment in partnership with Fon. Feature Description
BT’s Complete Wi-Fi proposition includes a Wi-Fi service-level Partnerships to resell third-party- No
guarantee branded mesh Wi-Fi network
hardware
BT launched its Complete Wi-Fi mesh Wi-Fi proposition in
November 2018. As part of BT Complete Wi-Fi, the operator Advanced Wi-Fi hardware including Yes – sells BT-branded mesh Wi-Fi
includes one mesh Wi-Fi access point as standard. BT has own-branded mesh Wi-Fi as part of the Complete WiFi offer
promoted the fact that a four-bedroom house could receive a
speed boost of up to 25% with just one mesh Wi-Fi access point. Operator-branded app for home Wi- Yes – Wi-Fi functions in My BT app
In case this still leaves coverage gaps, the BT Complete Wi-Fi Fi management
guarantee then obliges the operator to send up to two additional
Offer professional Wi-Fi installation/ No
mesh Wi-Fi access points in order to ensure a strong signal advice service
throughout the subscriber’s premises. If there are still coverage
problems, the subscriber receives a one-off GBP20 discount on Service-level guarantees for Wi-Fi Yes (for more detail, see description
their bill. on this slide)
BT is attempting to directly monetise its Complete Wi-Fi roll-out. It Additional services based around Yes – homespots
initially only offered Complete Wi-Fi to BT Plus customers for an Wi-Fi
optional additional GBP5 a month. (BT Plus refers to combined
fixed and mobile plans that include a 4G hub if the customer
suffers a wireline broadband outage). However, BT extended the
availability of Complete Wi-Fi to all its FTTx plans for an additional
GBP10 per month from January 2019. Legacy ADSL offers do not
come with Complete Wi-Fi and so this offer can therefore serve to
help drive fibre migration.
Understanding Awasr
Next steps
Annexure
Definitions
Case study 155
Omantel’s enterprise strategy – Omantel started focusing on digital services in

2016 and has taken a number of initiatives over the last couple of years
Omantel’s Enterprise initiatives in 2018 and 1H 2019
▪ Omantel initiated its transformation programme ‘Omantel 3.0’ Metrics Details
in 2016 to transition from being a traditional telecoms provider
Analytics Omantel launched an IBM-powered analytics platform,
to a full digital services provider TASIL, in partnership with Polish technology firm Tuatara,
▪ Omantel has worked with multiple advisory and systems to deliver targeted digital marketing messages using
location-based data. In March 2019, the TASIL platform
integration partners and software and hardware partners to was deployed by Carrefour (part of Majid Al Futtaim
provide ICT solutions. It has also invested in various JVs to gain Retail) to push customised offers.
access to key ICT products, expertise and client bases (see
Blockchain Government-owned company, Blockchain Systems and
next slide) Solutions (BSS), in partnership with Omantel, introduced
▪ Omantel’s clients include government authorities, banks, a software platform to enable academic institutions,
software developers and entrepreneurs to deploy their
energy companies and universities. It provides integrated ICT
own blockchain environments.
solutions (IT software, hardware and professional services)
underpinned by connectivity ERP Omantel deployed a hosted ERP solution developed by
SAP for Al Tasnim Group, a local construction company.
▪ It has also started targeting the SME market with its ‘office in
the box’ packages Innovation Omantel works with the Oman Technology Fund, an
incubator for technology start-ups, and collaborates with
the Sultan Qaboos University to establish a ‘Living Lab for
Key data for Omantel, 2018 IoT and Smart Cities’. Omantel’s subsidiary, Momkin, is
expected to equip the lab with IoT solutions.
Metrics Details
Smart city Omantel is the founding partner of Oman’s ‘Smart City
B2B and ICT ICT and ‘near-core’ generated OMR4.5 million Platform’, a knowledge-sharing consortium to drive smart-
city initiatives and test smart solutions. Omantel is also
revenue (USD11.7 million), up from OMR2 million in 2017.
involved in the development of a pilot project at
Key enterprise Al Mouj, ATE/Al Tasnim Group of companies, Knowledge Oasis Muscat (KOM) to deploy IoT-based
customers (2018) Carrefour, Ministry of Tourism and Oxy. solutions for smart-city services.
2019142-382 | Confidential Source: Operator website, Analysys Mason Research

Case study 156
Omantel’s enterprise strategy - Omantel grew its ICT portfolio rapidly using
investments & partnerships; however, it lacks some basic services such as IoT
Omantel’s Enterprise business: Strengths and weaknesses
▪ Omantel has invested in data centres: it owns an 80% stake in Strengths Details
Oman Data Park (ODP). ODP’s revenue increased by 7% in 2018
International Omantel operates 14 submarine cables with 5 separate
to OMR5.4 million (USD14 million) connectivity landing stations
▪ Omantel also has a 45% stake in Infoline, a BPO services Investment in Omantel set up a subsidiary, Oman Data Park, in 2012
provider that majorly has clients in the public sector, financial data centres with 4Trust LLC to offer data centre services. In 2018, it
services, energy and utilities and logistics verticals established another JV with Equinix to build a data centre
in Barka (near Muscat) and create a regional
▪ However, Omantel lags behind most of its peers in MENA in interconnection hub for operators, content providers and
terms of the provision of some basic services. For example, it cloud providers.
lacks an IoT service portfolio, the development of which is the Synergies Omantel’s acquisition of a 21.9% stake in Zain Group in
first step for many operators looking to build integrated solutions with Zain 2017 increases its addressable market and provides
around connectivity. Its subsidiary, Momkin, has not yet Group access to Zain’s ICT experience and subsidiaries.
commercialised LPWA services (as of August 2019)
▪ Pursuing multiple initiatives with unproven demand carries the Weaknesses Details
risk of spreading resources too thinly. For example, some of the
technologies that Omantel invests in (for example, blockchain Spreading Omantel has invested in new technologies with unproven
resourcing potential in the local market such as AI, blockchain and
and robots-as-a-service) are too advanced for a market such as across robots-as-a-service. Omantel may end up missing out on
Oman’s multiple key opportunities because of the limited resources that
initiatives can be devoted to any single initiative.
▪ Omantel needs to focus its efforts and investments on fewer
propositions. This will help the operator to develop products that Underdevelop Omantel lacks IoT products and capabilities due to which
meet the immediate needs of local businesses and ensure that ed IoT it may lose out on potential opportunities
propositions
its resources are primarily devoted to easy wins such as IoT.

Case study 157
Etisalat has established its own dedicated unit, Etisalat Digital, that provides ICT
services such as data centres, cloud and cyber security to enterpises
Etisalat’s Enterprise initiatives in 2018 and 1H 2019
▪ Etisalat aims to offset its stagnant core revenue by investing in Metrics Details
and providing an extended ICT services portfolio to businesses Blockchain Etisalat (along with eight banks) developed UAE Trade
▪ In 2016, Etisalat established a dedicated unit, ‘Etisalat Digital’, Connect (UTC), a new nationwide blockchain-based
trading platform to validate financial transactions and
to exploit its expertise and assets (such as data centres, cloud, prevent fraud.
cyber-security and IoT) to help local businesses and
government entities to implement digital transformation Connectivity Etisalat signed a contract with the Dubai 2020 Expo
organiser stating that it will provide 5G connectivity
projects as part of UAE Vision 2021 infrastructure as well as IT applications and systems
▪ Etisalat offers some professional services such as consulting, (such as command and control and a ticketing system).
design, installation and system integration for large projects, IoT Etisalat won a contract with the Ministry of Interior to
as well as app and web development and office administrative equip 400 000 villas with smart fire alarms using NB-IoT.
support for SMEs. In 2018, it inaugurated the ‘SMB Awards It collaborated with Emirates Transport to build a large
connected public transport fleet. It also built the largest
2018’ to recognise the achievement of SMEs and start-ups
connected outdoor digital advertisement network in the
across different industries in the UAE. Since 2017, Etisalat has UAE for petrol station operator ADNOC.
also organised open events for SMEs in order to showcase the
Innovation Etisalat established the ‘Future Now’ initiative in 2018.
potential benefits of its new offerings in cloud and security
This includes the ‘Open Innovation Centre’ for showcasing
B2B solutions, the ‘Scale up’ innovation programme to
Key data for Etisalat in the UAE, 2018 bring four start-ups in AI and blockchain together to
deliver joint projects and the ‘IoT Partnership’ programme
Metrics Details that invites developers to build and test their applications
on Etisalat IoT platform.
B2B and ICT
B2B and ICT revenue is not disclosed. Professional Etisalat introduced the ‘Hello Business Hub’ in 2018 to
revenue
services support businesses and entrepreneurs with services such
Abu Dhabi Investment Authority, Abu Dhabi Police, as registration, insurance, banking, VAT consultation and
Key business
Al Ain hospital, EY, Ministry of Foreign Affairs and office equipment.
customers (2018) Ministry of Interior.

Case study 158
Large enterprises in the public and private sector comprise a majority proportion of
its customer portfolio
Etisalat’s Enterprise business: Strengths and weaknesses
▪ Etisalat’s strong relationship with large public and private Strengths Details
enterprises provides opportunities to upsell IT services, but
Connectivity Etisalat has a nationwide fixed network and global
makes it difficult to exploit smaller opportunities with SMEs portfolio connectivity links with a level of control that its main
competitor du (EITC) cannot match.
▪ Etisalat has an extensive infrastructure and a sizeable customer
base of large enterprises. It has exploited its position as the Customer Etisalat is the incumbent and is state-owned so it is well
national fixed connectivity provider to upsell IT services base entrenched in government institutions and large
enterprises that have the biggest IT budgets.
▪ Etisalat Group has established subsidiaries to address its Data centres Etisalat operates more than 10 data centres in the UAE.
internal IT requirements and to support its telecoms divisions in In 2018, Microsoft announced two new data centres in
MENA and their business clients the UAE in partnership with Etisalat to deliver Azure,
Office 365 and Dynamics 365 services.
▪ However, Etisalat (UAE)’s IT and professional services have had
less traction with small private companies. There are several
reasons for this
– They may be located in areas that have historically been Weaknesses Details
served by EITC (du) (for example, Dubai Internet City) Wide choice The UAE is the regional hub for most global IT vendors as
of well many local IT players. This means that local
– Their IT requirements are not particularly sophisticated partnerships businesses have a wide choice of providers. Etisalat
needs to carefully select which popular solutions to
– These companies may be subsidies of international incorporate into its ICT offerings to remain competitive.
organisations and are thus less likely to use Etisalat
Private data There is a risk that Etisalat’s current cloud service
– They prefer to opt for IT players that can provide a wider range centres providers (such as Amazon and Microsoft) will consider
of services more cost-effectively building their own data centres in the future which would
disintermediate Etisalat from its clients.

Case study 159
Ooredoo in Qatar has majorly developed its ICT service portfolio through partnerships
with various technology players
Ooredoo’s Enterprise initiatives in 2018 and 1H 2019
▪ Ooredoo plans to grow its ICT portfolio due to the expected Metrics Details
potential for revenue growth in the B2B sector, especially in the Cloud Ooredoo launched ‘Cloud Connect Service’, a hybrid cloud
context of the 2022 FIFA World Cup solution that allows businesses to connect their private
cloud with global cloud service providers through the Colt
▪ It targets SoHos, SMEs, LEs and the government with its ICT IQ Network.
portfolio. The government contributes the most to B2B
revenue, but Ooredoo intends to grow the SME contribution Connectivity Ooredoo claims to have launched the first commercial 5G
services for businesses in the world in May 2018. In
▪ Ooredoo has mainly developed its ICT capabilities organically January 2019, it connected Qatar National Bank (QNB) to
through partnerships rather than through investments in ICT its pre-standardised 5G network services.
companies. This could be because the ICT market in Qatar is Innovation Ooredoo launched a ‘Service Delivery and Assurance Lab’
not sufficiently developed to provide acquisition targets for to test business solutions before rolling them out and
Ooredoo providing proofs of concepts (PoCs).
▪ Ooredoo has a growing range of cloud-based services (see next

slide). It has focused its efforts in recent years on accelerating
the deployments and upgrades of its five data centres IoT Ooredoo launched ‘IoT Builder’ as a cloud service running
on the Cumulocity IoT platform. The platform facilitates
the development of applications and the integration of
connected devices.
Key data for Ooredoo in Qatar, 2018
Metrics Details
Revenue not disclosed. The group reported more Smart Ooredoo has been involved in the design and deployment
B2B and ICT stadiums of the connectivity and IT platforms for the stadiums that
than USD1.5 billion in B2B revenue in 2017, which
revenue represented 16.7% of the total revenue. will be used during the 2022 World Cup. Ooredoo ran a
demo of an AI-driven ‘smart stadium’ solution during
Key business Doha Bank, Ministry of Public Health, Qatar Central MWC 2019 that uses Dell EMC’s AI and cloud
customers (2018) Bank and Qatar First Bank. technologies to detect hazardous objects.

Case study 160
Large and public sector enterprises form a major proportion of its enterprise clients
Ooredoo’s Enterprise business: Strengths and weaknesses

▪ Ooredoo is the primary ICT provider for the public sector and Strengths Details
large corporations, but there is potential to improve its traction
5G Ooredoo was the first operator in MENA to launch 5G. It
within the SME market connectivity has invested in its infrastructure in order to support
future use cases that are geared towards businesses
▪ Ooredoo is heavily involved with building the ICT infrastructure (Ooredoo has already tested 5G connected buses and
for the World Cup 2022 (it is the main ICT provider for the new drones in Qatar). In 2019, it signed an agreement with
stadiums). The operator is also mandated by the government to Nokia to build a 5G cloud-native core network that will
support Qatar’s ‘National Vision 2030’ and boost the private be deployed in Ooredoo’s data centres.
sector’s contribution to the economy, especially that from SMEs1 Data centres Ooredoo operates five data centres, in addition to
having a 20% stake in MEEZA, a state-owned cloud
▪ Ooredoo has a monopoly over data centres in Qatar, allowing it service provider. These investments help to position
to dominate the cloud market and secure important contracts Ooredoo as the de facto provider of cloud services to
with oil and gas companies, banks and public authorities. In the government and large enterprises in the country.
addition to its five data centres, it has also a 20% stake in Support the Ooredoo will benefit from development programmes
MEEZA which provides managed cloud and security solutions to government’s and private sector growth in the context of the World
public and semi-public institutions using its two data centres. plans Cup 2022 and Qatar National Vision 2030.
▪ Ooredoo has used its data centre infrastructure to host cloud- Weaknesses Details
based ERP, security and managed connectivity services from
Business Ooredoo’s business performance is tied to the economic
international IT vendors (Atos, Dell, Microsoft and SAP). These attractivenes outlook for Qatar. Due to the ongoing economic embargo,
services primarily target large enterprises, but Ooredoo has also s multinational companies may be less inclined to have a
introduced managed cloud-based solutions (such as Office 365, local presence, which will affect Ooredoo’s B2B revenue.
Cisco’s Meraki and HCS) to attract SMEs Focus on Ooredoo has dedicated its resources to serving its largest
large public and private customers with tailored ICT projects,
enterprises giving less attention to SMEs, despite its ambition to
support the development of this segment.
Note: 1. According to the Qatar Development Bank (QDB), SMEs represented 96% of the 25 000 private businesses registered
in Qatar at the beginning of 2019
Case study 161
STC has a dedicated Enterprise Business Unit that offers connectivity and ICT
services to enterprise clients
STC’s Enterprise initiatives in 2018 and 1H 2019
▪ STC’s Enterprise Business Unit is well-positioned to be the Metrics Details
prime provider of ICT services to large government businesses. AI/ STC worked with UiPath to deploy its robotic process
However, it has taken steps to increase the appeal of its ICT automation automation (RPA) platform. STC Solutions also signed a
offerings to the SME segment partnership with UiPath to introduce the first ‘RPA-as-a-
service’ to Saudi Arabia.
▪ STC provides core connectivity services, but it relies on its
Blockchain STC signed an MoU with the National Unified
subsidiaries, especially STC Solutions (STCS), to offer more- Procurement Company (NUPC), a local supplier of
specialised ICT services. STCS was formed from the merger of medical equipment and pharmaceuticals, to optimise its
earlier local ICT acquisitions including Awal IT Services and supply chain.
Arabian Internet and Communications Services. BPO STC subsidiary, Contact Center Company (CCC), signed a
▪ STCS provides cloud, managed services, systems integration 3-year contract with the National Water Company (NWC)
to outsource its call centres and provide professional
and IoT services for various industry verticals. One of the services to improve customer experience. CCC served 18
solutions is a cloud ‘marketplace’ that offers hosted companies in 2018.
applications for different business functions such as HR,
Cloud STC signed an MoU with Oracle to provide cloud-based
accounting and procurement, which are deployed by local and services. It also signed an agreement with Zenoss to
global IT vendors provide SaaS, IaaS and service assurance to STC’s
managed telephony services customers.
Key data for STC in KSA, 2018
Data centres STC inaugurated a new data centre in Riyadh which it
Metrics Details claims has the largest capacity in MENA. It also plans to
open 12 new data centres within the next 3 years to
B2B and ICT support its digital ambitions.
B2B and ICT revenue is not disclosed.
revenue IoT STC is involved in smart-city projects in Medina and
Key business Many government entities such as ministries and Riyadh that use IoT for smart parking, smart waste
customers (2018) large corporations such as SABIC. management services and environmental sensors. It has
also introduced an enterprise medical imaging (EMI)
solution to the King Fahd Hospital.

Case study 162
Being the incumbent in KSA allows it to have a strong foothold in the public sector
STC’s Enterprise business: Strengths and weaknesses

▪ STC exploits its infrastructure, subsidiaries and close Strengths Details
relationship with the government to provide services in the B2B
Scale and STC has the scale and infrastructure needed to grow in
market. However, more efforts are needed to attract the SME ambition the enterprise segment. It has also a much larger
segment addressable enterprise market than the other operators
featured in this report. Its strong relationship with the
▪ STC operates in the largest government-driven economy in government and large enterprises will enable it to
MENA. It has established itself as the preferred connectivity capitalise on national development projects.
provider for government institutions and large corporations by Connectivity STC has a large fibre network that competitors cannot
investing in infrastructure and data centres and expanding its IT infrastructure match. STC manages more than 90% of the connectivity
capabilities projects in Saudi Arabia.
▪ In addition to STCS, it has built a portfolio of subsidiaries to offer Portfolio of STC operates various companies that can serve the
specialised business services including outsourced customer companies needs of business customers that do not fall under the
core communication service umbrella.
care and back-office services and critical communications
▪ STC is committed to supporting the government’s plan to Weaknesses Details
stimulate private sector growth. It sells a variety of hosted Extensive ICT By rapidly expanding its ICT portfolio, STC risks spreading
applications and services to SMEs. It was also responsible for portfolio its resources too widely, making it difficult to develop its
incubating 28 start-ups in the ICT and digital sectors (as of May propositions to maturity.
2019) in partnership with Amazon, IBM and Microsoft, among Reliance on STC derives most of its B2B and ICT revenue from the
others, through its Inspire U programme the public public sector which may be less amenable to adopting
sector the more-advanced solutions proposed by STC.
▪ However, its dependency on big ICT projects and the continued
expansion of its ICT portfolio may overstretch resources and limit Amazon’s Amazon is looking to offer AWS from Saudi Arabia. This
entry in the will challenge the existing cloud-based services offered by
its ability to refine its propositions and develop off-the-shelf data centre STC in partnership with SAP and Oracle.
offerings to target SMEs market

Case study 163
Zain Kuwait also focuses on selling ICT services such as security solutions and cloud
services, to large enterprises and public sector
Zain’s Enterprise initiatives in 2018 and 1H 2019
▪ Zain Kuwait expanded its ICT product portfolio to increase the Metrics Details
share of wallet from its existing business customers 5G Zain’s fixed-wireless access subsidiary, MADA, secured
▪ It has focused on selling converged ICT solutions to connectivity 100MHz of unpaired spectrum in the 3.4–3.8GHz band
government institutions and large enterprises. It has also and plans to launch 5G-based fixed-wireless services in
2019.
achieved sizeable revenue and market share growth in the
SME segment over the last 2 years by offering bundled fixed– Cloud Zain signed a partnership agreement with Microsoft to
mobile communication services and tailored cloud solutions offer cloud-based services in Kuwait.
▪ Zain is a key partner in achieving the objectives of the ‘New Amazon and Huawei have also selected Zain Group as a
Kuwait Vision 2035’, which aims to use ICT to improve security, strategic partner to provide their cloud services in Kuwait
the economy, infrastructure, living standards, mobility and and across MENA.
health in the country. This compels Zain to accelerate its Innovations The company launched Zain Drone in Kuwait in 2018.
transformation into being an integrated ICT provider The new unit will initially support the group in the
▪ One of the most recent projects won by Zain in Kuwait is the inspection of its tower infrastructure, but Zain plans to
planned deployment of 880 000 smart electrical meters and offer its services to other sectors including agriculture, oil
and gas, utilities, construction, security and real estate.
300 000 water meters for the Ministry of Electricity and Water
(MEW) by 2021 Zain also opened the Zain Innovation Center (ZINC) in
Kuwait in 2018 to promote youth entrepreneurship. The
Key data for Zain in Kuwait, 2018
centre will provide office space as well as mentors
including those from Zain and its technology partners.
Metrics Details
B2B and ICT
B2B and ICT revenue is not disclosed.
revenue
Key business
The Ministry of Electricity and Water.
customers (2018)

Case study 164
The acquisition of NXN, a smart city advisory and consulting services provider,
helped Zain build its IoT capabilities
Zain’s Enterprise business: Strengths and weaknesses
▪ Zain’s B2B services portfolio in Kuwait is relatively new Strengths Details
compared to that in other countries such as Jordan. This is due
Smart-city Zain has access to smart-city solutions and technical
to the predominance of mobile in Kuwait and the operator’s solutions know-how through its UAE-based subsidiary NXN. The
limited access to fibre infrastructure. As a result, MPLS, DIA, VPN latter is already involved in the deployment of smart
and co-location services were only introduced in 2017 meter solutions across Zain’s footprint.
▪ Zain Group has built IoT capabilities through its acquisition of Synergies Zain can use its B2B experience and initiatives in other
between opcos markets across its footprint and adapt them to the
NXN which was involved in smart-city projects in the UAE and Kuwaiti market. To this end, it has been organising
Saudi Arabia. The experience of its subsidiaries in leading smart annual B2B conferences with representatives from the
meter projects in Bahrain, Iraq and Jordan has also helped. opcos to discuss local developments and share best
Indeed, this experience resulted in Zain winning the smart practices.
meters project in Kuwait in 2018. The operator also has access Access to IT Jordan has a young and digitally literate population, as
to IT staff in Jordan that can be used to support internal IT talent in well as a dynamic IT market that helps to nurture IT
projects. Jordan talent. Zain set up a start-up hub in Jordan in 2014 to
tap into these resources in order to add to its
▪ However, Zain’s dependency on large contracts within the public centralised IT teams.
sector comes with the long-term commitment of resources and
the risk of delays and slow progress. For example, the Weaknesses Details
government only released the RFP for the smart meters project Limited Zain has extensive fibre backhaul infrastructure but lacks
in Kuwait in February 2019, and the project is not due to be over access to access to the national broadband infrastructure which
until 2023 fibre limits its ability to provide converged packages.
infrastructure
Limited fixed Zain has limited fixed infrastructure and does not have
business wired broadband business customers to cross-sell IT
customers services to. This puts Zain at a disadvantage over
Ooredoo and VIVA that acquired local wired broadband
providers.

Case study 165
Macquarie positions itself as delivering superior customer service contributing to

+5% enterprise connectivity revenue growth in a flat market
▪ Macquarie positions itself as delivering superior customer
service compared to its competitors. It emphasises predictable
billing and customer satisfaction as key differentiators.
Macquarie Net Promoter Score (NPS) compared to customer
▪ Macquarie prominently highlights its NPS score (which stood at retention, cross-sell and debtors (DS) 2013 vs 2017
+70 points in 4Q of FY 2018) on its customer-facing website,
and aims to keep above +60 points across all of its business
units.
– There is a lot of focus on measuring customer satisfaction
and improving measures such as response rate. There is
also a focus on NPS for staff, and in hiring, with bonuses
linked to customer satisfaction.
– Macquarie Telecom sees a strong relationship between NPS
and other metrics such as cross-sell and customer retention
Macquarie prominently displays its NPS score on its website
▪ B2B specialists such as Macquarie are often able to achieve

high NPS scores, particularly those focused on the large
enterprise market with dedicated account managers and sales
teams. However, Macquarie is particularly successful in this
respect
▪ There is also a trend among Australian operators to report NPS
and churn more prominently and more often than operators in
other countries. This may be partly in response to Macquarie’s
very active marketing in this area.
2019142-382 | Confidential Source: Operator website, Analysys Mason, press releases
Case study 166
Swisscom acquired various technology players to develop its capabilities in the ICT
market
▪ Swisscom is Switzerland’s incumbent and first entrant into the
mobile market. Despite strong competition it has managed to
Operator summary
maintain surprisingly resilient market share, accounting for
more than half of fixed and mobile connections. Swisscom is the fixed incumbent and dominant
Company details mobile operator in Switzerland. It also operates in
▪ Swisscom has made a myriad of acquisitions to help it become Italy as a challenger under the brand Fastweb
one of the largest IT providers in Switzerland. It has made a
few acquisitions targeted at gaining people with specific skills Swisscom targets all sizes of business, including
in areas such as software development and SAP products. It Target market public sector
has also used acquisitions to enter new markets in healthcare
and banking. Geographical ▪ Switzerland
▪ Swisscom has made effective use of retail stores to target coverage ▪ Italy
small businesses. It has also attempted to develop digital ▪ Open Web Technology (2016) – Technical
marketplaces and use of digital sales channels, but this has support and software development
Selected
met with little success. ▪ H-Net AG (2015) – Healthcare
acquisitions ▪ Entris Operations (2013) – Banking
2018 growth rate ▪ Resource Group AG (2009) – SAP specialists
KPIs 2018 value
(YoY%)
Total revenue USD9 billion -2.7%

Mobile Fixed broadband
Enterprise revenue as a
percentage of total 26% -4.0%
Share of connections,
revenue
consumer and business 60% 50%
ICT revenue as a market in Switzerland,
percentage of enterprise 45% -3.9%
3Q 2018
revenue

Case study 167
Swisscom’s network of SME centres with small business professional advisers is a

key strength
▪ Swisscom is an example of one of the most comprehensive
approaches to bundling for SMEs. It offers an end-to-end
Swisscom Smart ICT bundle
managed ICT service, ranging from provision of hardware to
operation and maintenance of office applications and servers. Service Description
This approach is not easy to replicate. Swisscom has three
fundamental assets that help it to provide this product portfolio Cloud or on-premise servers,
operated, maintained and managed
to SMEs, which was launched at the beginning of 2018: Servers
by Swisscom. Includes automatic
– A nationwide network of 40 “SME centres” with small backup and storage
business professional advisers. SMEs can come into the Ranging from a simple broadband
store to get advise on their ICT requirements and discuss Internet or corporate network lines to managed LANs and VPNs
service options. They handle all the enquiries and on-site for SMEs with multiple sites
installations.
– Swisscom has made considerable investments into its cloud Wireless failover 4G services in the event of a failure
portfolio, which includes acquiring technology, software
developers and technical support personnel. Office365, workplace applications
Cloud software package
– This is a people intensive business. Swisscom has invested such as UC and antivirus
in acquiring enough technicians to support SMEs both
remotely and on-premises when needed. Hardware PCs, mobiles and laptops
▪ Swisscom (along with several other operators such as
Vodafone) experimented with an online marketplace where
SMEs could go to a platform containing a few hundred Mobile and fixed telephony Optional add-ons
applications and purchase any of interest to them. We know of
no examples of this succeeding – most operators have
IT help desk Subscription to remote IT support
significantly scaled back their app offerings to only several well
chose applications. The digital sales channel has also been of
little success to operators.

Case study 168
Vodafone has partnered (outsourced) with IBM to deliver managed cloud and
professional services to large enterprises
Key benefits
Knowledge sharing from the mix of expertise

should fill gaps between existing products
Improve the quality and increase the

• Vodafone has expertise in IoT, 5G and value of B2B services and solutions • IBM has expertise in multi-cloud,
edge computing industry and professional services
• The deal resembles a joint venture with • IBM will have access to Vodafone’s
750 of Vodafone’s staff working in the networks in 25 different countries and
B2B market transferring to IBM (SI leverage this access to attract a wider
capabilities transferred to IBM) Develop new innovative solutions range of clientele
• Vodafone will be able to leverage IBM’s in 5G, AI and IoT • Deal worth USD550 million over eight
AI and cloud experience years
Criteria
Speed to
Pro
Vodafone is able to deliver a credible end-to end service

+ Criteria
Future
Con
Vodafone will not gain the expertise to take a greater

–
market for managed cloud and connectivity much more rapidly opportunities role in cloud services in the future if the combination of
than by building its own capabilities cloud and connectivity is a success
Level of risk If not successful, Vodafone’s exposure will be much Joint-working Vodafone and IBM will have to accommodate different
more limited than if it had invested in acquisitions to company cultures and ways of work, and Vodafone will
build capabilities in cloud and SI only have limited control over IBM’s roadmap
Focus The deal will allow Vodafone to focus resources on the Target The tie-up may not provide a good fit for SMEs that do not
connectivity business without the distraction of cloud. customers want to deal with an organisation of IBM’s scale.
As a challenger in the fixed market, and a leading IoT Vodafone may need additional local partnerships.
player, it still has growth potential in connectivity.
2019142-382 | Confidential Source: Business Insider, The Register, Silicon Republic, Telecoms.com, CIO
Case study 169
KPN acquired an ICT reselling network to boost its sales capabilities in the ICT
market
▪ KPN is the Netherlands’ incumbent and first entrant into the
mobile market. In the face of strong competition and declining
Operator summary
revenues, KPN pulled out of its other markets to focus
exclusively on the Dutch market. KPN has been making KPN is the fixed incumbent and dominant mobile
acquisitions to boost its capabilities in ICT services operator in the Netherlands.
Company details It sold its Belgian business, BASE, in 2015 to focus
▪ KPN has made some acquisitions in cloud and security, but we more on the Dutch market.
focus here on its acquisition of RoutIT, an ICT reselling network
that gives KPN the ability to cross-sell ICT services to almost KPN targets all sizes of business, including public
Target market
every business in the country sector
▪ KPN has had to adapt its sales and training schemes for both
direct and indirect resellers to sell ICT services Geographical
▪ The Netherlands
coverage
▪ RoutIT (2016) – ICT reselling network
Selected ▪ DearBytes (2017) – Security
2018 growth rate acquisitions ▪ Qsight IT (2017) – Security and cloud
KPIs 2018 value consultancy
(YoY%)
Total revenue USD6.4 billion -1.9%

Mobile Fixed broadband
Enterprise revenue as a
percentage of total 38% -1.8%
revenue Share of connections,
consumer and business 47% 40%
ICT revenue as a
market in the
percentage of enterprise 15% 12.4%
revenue Netherlands, 3Q 2018

Case study 170
KPN has comprehensive training schemes and incentive plans to drive ICT solutions
through its channels
▪ KPN acquired RoutIT, an ICT reselling networking of around
1500 partners, to increase its ability to sell ICT solutions. KPN Structure of KPN ÉÉN, mostly sold through RoutIT as a channel
now claims to have the largest partnership network in the
Netherlands with the potential to cross-sell ICT services to
almost every business in the country
▪ KPN had to change its incentive structures and train resellers
and its own sales people to sell ICT services. KPN also recruits
larger resellers who have qualifications and certifications in
selling and supporting ICT solutions
– Around 30% of bonus calculations are based on NPS, in
order to drive customer satisfaction – a critical metric in
operators’ ability to sell ICT solutions
– RoutIT has a university where it trains all of its reselling
partners
– KPN provides online courses on its products and sales
techniques
– Incentive structures have shifted from connectivity services
to ICT solutions. There are few incentives now for selling only
connectivity services
– KPN got rid of sales personnel who could not adapt to the
new solutions and incentive structures

Case study 171
Talk Talk is the challenger operator in the UK market and majorly leverages indirect
sales channels to cater to the SME segment
▪ TalkTalk Business provides basic fixed voice, data and mobile
services. TalkTalk Business’s revenue (excluding carrier) has Operator summary
grown steadily, and increases in Ethernet and next-generation
voice have offset declines in legacy voice services. TalkTalk positions itself as the leading value-for-money
consumer and B2B telecoms provider in the UK. It
▪ Indirect sales accounted for 83% of TalkTalk’s business Company details relies on wholesale inputs for fixed services and
revenue in 2017/2018; customers were indirectly reached operates as an MVNO
through partners, wholesalers, carriers and system integrators.
▪ SoHos and SMEs
▪ TalkTalk had planned to transfer its 80 000 direct B2B Target market
business customers to Daisy (a UK-based operator specialising
in ICT services for SMEs) in 2018 in order to reduce costs and Geographical
to prioritise the indirect channels where it believes its strength UK domestic businesses
coverage
lies. However, the parties were unable to agree final terms
TalkTalk corporate revenue, by service, 2014–20181
2018 growth rate

KPIs 2018 value
(YoY%)
Total revenue USD2.2 billion -3.6%
Corporate revenue as a
-6.0%
percentage of total 22%
(+9.0% excl. carrier)
revenue
Note: 1. Corporate revenue breakdown not available prior to 2015/16

Case study 172
Virgin Media Business is the challenger operator in the UK market that targets
SoHoS and SMEs leveraging indirect sales channels
▪ Virgin Media’s business services include fixed and mobile
voice services, business broadband, dedicated Internet and
Operator summary
VPN solutions. It also provides security services, unified
communications, contact centre solutions and simple business Virgin Media is the UK’s main cable network operator.
applications such as Office 365 Its DOCSIS3.0 network covers approximately 46% of
Company details British premises. It also operates as an MVNO on the
▪ Virgin Media is a cable operator with a significant Pay-TV EE and O2 networks. It is fully owned by Liberty Global
business, and is primarily focused on the consumer market. It
has a 12% share of the residential fixed call and access ▪ SoHos and SMEs
revenue in the UK, and a 20% share of all broadband Target market ▪ Public sector and large enterprise
connections. However, it has less than a 3% share of business

calls and access revenue, as tracked by Ofcom Geographical
UK domestic businesses and local government
▪ Its business proposition centres on providing SOHO and small coverage
businesses with high network speeds, low prices and ‘business
customer’ support. Hosted voice, contact centre services, ▪ Virgin Media Business sells through indirect channels including
basic cloud apps and mobile services are also offered. resellers and IT system integrators. It also sells directly to larger
▪ Revenue growth in 2018 was driven by an 18% increase in the enterprises and the public sector, and has met with success in
SoHo subscriber base targeting local government
▪ Virgin Media launched SD-WAN in early 2019 with a relatively
2018 growth rate simple offer based on proven technology from Versa. The
KPIs 2018 value solution is mostly targeted at new customers, though it will also
(YoY%)
be sold into the existing base. Retail, construction and public
Total revenue USD1.7 billion 2.4% sector are all seen as potential targets. Virgin plans to deploy
Enterprise revenue as a universal CPE which will simplify inventory and enable remote
percentage of total 15% 3.2% (rebased) updates which reduce the need for truck-rolls
revenue

Case study 173
TDC makes effective use of unified communications to bundle services for SMEs
▪ TDC Business One is built upon a concept of user profiles, with

each profile including a different set of features. Businesses Structure of TDC Business One
select the number of each profile they want and receive all the
features for a single price. User profiles
▪ For every profile, all of the features are integrated into TDC’s Features Combo Mobile Recep- Office
UC application: TDC Communicator Extra, which is powered by user user tionist user
BroadSoft. In contrast to most operators who sell UC solutions
as an optional add-on at additional cost, TDC does not view UC Fixed voice line ✓  ✓ ✓
as a separate service, but rather the means to integrate Mobile package
connectivity and ICT services – an important distinction. (22GB per ✓ ✓  
▪ TDC has managed to migrate almost 20% of its SME client month, pooled)
base onto this product, far exceeding the typical penetration
UC (TDC
we see for most operators which are generally in the lower
Communicator ✓ ✓ ✓ ✓
single digits.
Extra)
▪ This approach is effective for several reasons:
Email ✓ ✓ ✓ ✓
– It is simple. The solutions are standardised, which results in
predictable and stable pricing. The simple structure also Virtual
  ✓ 
makes it easy for sales staff and SMEs to understand. It switchboard
does not require specialist knowledge to sell, use or
Personal
support. ✓ ✓  
assistant
– The bundle includes ICT services such as security which are
of interest to SMEs for no extra cost. Call recording ✓ ✓ ✓ ✓
– It is cloud-based, which limits the hardware, maintenance Security ✓ ✓ ✓ ✓
and support required from the SME.

Case study 174
TDC has a small ICT portfolio addressing large enterprises, focusing on managed
Microsoft and unified communications
▪ TDC has developed a relatively small ICT portfolio for large
enterprises. Instead of offering a wide range of ICT solutions TDC business portfolio and growth in Skype for Business seats
for enterprises, TDC has invested in specialising in UC and (taken from 2018 annual report)
Microsoft solutions
▪ Since 2016, TDC has acquisitions aimed at gaining Office365
specialists and Azure specialists. Through these acquisitions,
TDC has around 80 Microsoft specialists who can manage and
support Microsoft and UC solutions. The acquisitions were
primarily aimed at gaining specialised personnel who are
experienced in supporting these services
▪ Even for relatively small ICT portfolios, some professional
services capabilities are needed to sell services like Azure. TDC
is able to help enterprises migrate to the cloud and then
manage these services in Azure. It can also integrate Skype for
business with office applications such as Office365
▪ TDC’s portfolio essentially makes it an end-to-end provider of
Microsoft’s services. This is a product portfolio that does not
require substantial investment and also addresses the large
portion of businesses who use Microsoft’s solutions
Connectivity, Azure, UC and Office365 are also complimentary
services producing a fairly comprehensive bundle for large
enterprises

Understanding Awasr
Next steps
Annexure
Definitions
Definitions 176
Glossary of terms
Enterprise fixed services
1 Connectivity services
Fixed voice Narrowband including PSTN lines, ISDN channels, fixed–wireless voice channels and non-VoBB cable telephony
VoBB – either paid-for native VoIP services that use a broadband access connection, or VoIP services as part of a paid-for bundle
including broadband access
Fixed broadband DSL technologies, including ADSL and its variants and SDSL and its variants, irrespective of downstream speed; Retail fibre to the
premises, excludes Ethernet over FTTP; Broadband fixed–wireless access;
Dedicated connections Any dedicated connection such as Ethernet (including Ethernet via FTTP, EFM or FTTC), digital leased line, MPLS, ATM, or frame
relay services
Managed services Managed voice and data services provided to enterprises
2 Non-connectivity services
Unified Communications Applications relating to the provision of unified communications services within an organisation, across multiple sites where
necessary, accessed over the public Internet service
Public cloud SaaS and IaaS accessed via the public Internet or other shared connections
Security Security services provided to enterprises including complete managed services and individual services
Private cloud Bespoke cloud services accessed via a private WAN
Co-location and hosting Hosting of and access to enterprise-owned servers and other equipment within data centres; leased provision of IT infrastructure
(for example, servers) on a dedicated or shared basis
Enterprise mobility Mobile device management services
Desktop management Remote management of multiple desktops

Definitions 177
Glossary of terms
Indirect sales channels Definition
Channel partners Value Added Resellers (VARs) or other small-sized resellers, developers, or integrators – that typically conducts business locally
(within a single town/city)
System Integrators Systems integrators/IT consultants with multinational/regional presence such as Accenture, Capgemini, and Wipro
Product packaging Definition
Customised offering A-la-carte product offering that customers can select to suit their specific requirements
Productised offering Standard product bundles that customers can use to plug-and-play directly

Contact details
Sameer Gupta Cambridge Lund New York

Tel: +44 (0)1223 460600 Tel: +46 73 614 15 97 Tel: +1 212 944 5100
[email protected] [email protected] [email protected] [email protected]
+971 50 909 5224 Dubai Madrid Oslo

Tel: +971 (0)4 446 7473 Tel: +34 91 399 5016 Tel: +47 920 49 000
[email protected] [email protected] [email protected]
Dublin Manchester Paris
Tel: +353 (0)1 602 4755 Tel: +44 (0)161 877 7808 Tel: +33 (0)1 72 71 96 96
Siddharth Thakkar [email protected] [email protected] [email protected]
[email protected] Hong Kong Milan Singapore

+852 9313 7552 Tel: +39 02 76 31 88 34 Tel: +65 6493 6038
+971 50 690 7084 [email protected] [email protected] [email protected]
Kolkata New Delhi Stockholm

Tel: +91 33 4084 5700 Tel: +91 124 4501860 Tel: +46 8 587 120 00
[email protected] [email protected] [email protected]
London
Tel: +44 (0)20 7395 9000
[email protected]
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What is the objective of the presentation?

What is the objective of the presentation?

What are the different sections covered in the presentation?

What are the different sections covered in the presentation?

Workshop to assess potential strategic options

3-year strategy for Awasr

Sameer Gupta, Siddharth Thakkar, Tanmay Jaipurkar, Nikita Jindal

Objective and structure of the presentation

Expectations from Awasr’s division heads

Workshop 26 September w/c 29 September w/c 06 October

2019142-382 | Confidential Source: EIU, Euromonitor

The number of urban households is expected to grow over 2018-2023; Muscat is

576 598 611 631 Dhofar 9% 4.6

Ash Sharqiyah South 7% 26.3

106 104 98 94 93 90 86 82 83 78 Ash Sharqiyah North 6% 13.3

Adh Dhahirah 5% 6.1

2019142-382 | Confidential Source: Euromonitor, NCSI

95% 96% 96%

43% 44% 45% 45% 44%

57% 56% 55% 55% 56%

Omani popualtion Expat population

Notes: 1. % of people aged 15 and above

Note: 1. At current prices

Oman fixed broadband market overview

Demand side market overview

Supply side market overview

2014 2015 2016 2017 2018 2Q2019

Total connection HH penetration %1 Residential Enterprise

Note: 1.HH penetration is based on the NCSI latest approved population

High penetration in small

2019142-382 | Confidential Source: Telegeography, TRA

CAGR ▪ All fixed broadband technologies have seen double digit

2019142-382 | Confidential Sources: NCSI, TRA, Euromonitor, TeleGeography

Oman 2023: 86% 68% 607

▪ Oman’s FBB household penetration is expected to reach 86% by 2023

2019142-382 | Confidential Source: Analysys Mason, Telegeography, Euromonitor, TRA

Muscat contributes to 45% of total broadband connections and has a high

The top 5 governorates account for ~85% of FBB

In terms of future growth, governorates outside Muscat are expected to grow at a

2Q2019 2019 2020 2021 2022 2023

Muscat Outside Muscat X% CAGR

2019142-382 | Confidential Source: Analysys Mason, TRA

2019142-382 | Confidential Source: NCSI, TRA, Analysys Mason

FTTH connections in 2023 are estimated based on bottom up analysis of expected

▪ Based on roll-out plan of OB after removing vacant tags

Take rate on OB network

Number of FTTH connections on ▪ FTTH connections connected on OB network is estimated based on

2019142-382 | Confidential Source: Analysys Mason, OB, Awasr

FTTH take-up in Oman is benchmarked with global markets and is expected to be

In developed countries with intensive Fibre Take up is Muscat is expect to get

Note: 1 Take-up rate = Number of FTTH connections/Number of premise passed

OB network roll-out plan in

Awasr entry- Omantel entry- Ooredoo FWA Omantel ADSL

Examples of Internet Augmented

Bands required by stream type

1 Some Kbit/s 320Kbit/s 1–2Mbit/s 6–8Mbit/s 15–25Mbit/s 30–80Mbit/s 50–600Mbit/s 0.1–2Gbit/s

2 Some Kbit/s 640Kbit/s 2–4Mbit/s 12–16Mbit/s 30–50Mbit/s 60–160Mbit/s 0.1–1.2Gbit/s 0.2–4Gbit/s

3 Some Kbit/s 960Kbit/s 3–6Mbit/s 18–24Mbit/s 45–75Mbit/s 90–240Mbit/s 0.15–1.8Gbit/s 0.3–6Gbit/s