Vodafone Qatar sues local regulator over Virgin

Vodafone Qatar has sued the country’s regulator for allowing Virgin Mobile to enter the market in partnership with the incumbent Qtel.
The telco argues that ictQatar failed to reveal that it would allow a third company to launch mobile phone services in…

Vodafone Qatar has sued the country’s regulator for allowing Virgin Mobile to enter the market in partnership with the incumbent Qtel.

The telco argues that ictQatar failed to reveal that it would allow a third company to launch mobile phone services in Qatar.

Vodafone Qatar only received the country’s second mobile licence in June 2008. Qtel announced its partnership with Virgin at a surprise launch party on 13 May.

Under the terms of the agreement between the two telcos, Qtel will sell Virgin-branded mobile phones and services. The two have structured the deal as a franchise agreement rather than calling Virgin a mobile virtual network operator.

Qtel has permission to operate as a franchise under the terms of its own licence, says a Qtel spokesman.

“Qtel’s Virgin Mobile Qatar service is a brand franchise agreement between the Qtel Group and Sir Richard Branson’s Virgin Group and is fully compliant with the terms of Qtel’s existing licence,” said the spokesman. “The launch of the service addresses a key market segment in Qatar enhancing consumer choice in the market. It is also an important step in the development of Qtel’s group wide multi-brand strategy.”

Vodafone Qatar paid QR7.7bn ($2.1bn) for its licence. The Vodafone Group owns 30% of the company, the Qatar Foundation, a state-owned charity, owns a further 30% stake, and minority shareholders own the remaining 40% which is listed on the Qatar Exchange.

Vodafone Group declined to comment and Vodafone Qatar could not be reached. The regulator also declined to comment.