The Telecommunications Regulatory Authority (hereafter “TRA”) is empowered to regulate the telecommunications sector of the Sultanate of Oman and to prepare suitable conditions for competition among the licensees to ensure the provision of telecommunications services at reasonable costs and prices.

The cost of capital is one of the factors influencing the valuation of reasonable prices for various telecommunications services. It represents a return that a business must earn if it continues to attract funds in a market where financial resources have many alternative uses. It represents the rate of return a company should earn on its invested capital to provide sufficient returns to the investors financing the investment.