ictQatar, the telecoms regulator in the state of Qatar ruled that although Qtel, Qatar’s largest telecommunications company, did not break the law in going into a JV with Virgin Mobile, it had broken the terms of its licence.
Vodafone Qatar, which…
ictQatar, the telecoms regulator in the state of Qatar ruled that although Qtel, Qatar’s largest telecommunications company, did not break the law in going into a JV with Virgin Mobile, it had broken the terms of its licence.
Vodafone Qatar, which started operating in the Emirate in 2007, had been embroiled in a long-running dispute with Qtel over a ‘brand franchise agreement’ with Virgin Mobile.
The UK telco had paid US$2.1bn for the country’s second licence and had thought it was entering a duopoly. However, this May Qtel entered a ‘branding agreement’ with Virgin Mobile which Vodafone Qatar argued amounted to a third licence.
The regulator stated that the branding agreement was presented: “in a manner which misled or deceived people about who was providing the services. Some people were misled into thinking that Virgin Mobile was a new telecoms operator or service supplier in Qatar.”
The regulator concluded: “This had the effect of distorting competition, as it presented another apparent third operator or service supplier option to customers or potential customers.”
Vodafone Qatar announced that they would be claiming damages against Qtel.
