Telecom shares dip due to royalty hike

Muscat: Shares of two telecommunication service providers in Oman have dropped on Sunday, after the government decided to raise royalty paid by these firms to 12 per cent of revenues in 2017, from 7 per cent earlier.
Omani Qatari Telecommunications Company (Ooredoo) shares plunged by 7.27 per cent to 612 baisas, amid 1.63 million shares changing hand. Likewise, Oman Telecommunications Company (Omantel) shares dipped by 4.29 per cent to OMR1.45 amid 387,342 shares changing hands.
A severe drop in oil revenue has prompted the government to find alternative sources of revenue, through new levies and increase in existing taxes. Although there was a serious discussion on raising telecom royalty in January 2016, the government did not take a decision at that point of time.