Qtel to be penalised over Virgin Mobile launch

Qatar’s regulator has announced that Qtel will face a fine and appropriate action in regards to its launching of Virgin Mobile-branded services in May. It was determined by ictQATAR that Virgin Mobile’s services did not constitute a third mobile licensee and therefore breach the terms of Vodafone as second licencee, however, the way it was marketed did deceive consumers as to its genuine nature.

“IctQATAR  has concluded that Virgin Mobile services were represented by Qtel to the public between May 13 and 18 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 telecommunications operator or service supplier in Qatar,” a statement by the regulator read.

“This had the effect of distorting competition, as it presented another apparent third operator or service supplier option to customers or potential customers. In reality, there are only two licensed telecommunications service providers in Qatar who are permitted to sell mobile services to the public – Qtel and Vodafone Qatar.”

Vodafone ended the state-owned operator’s monopoly in 2007 when it paid US$2.1 billion for the right to be the nation’s second telecommunications provider.

IctQatar has referred the case to the Office of the Attorney General where an appropriate penalty against Qtel will be settled upon.

On May 17, four days after the launch by Qtel of Virgin Mobile services, the regulator issued orders to Qtel requiring certain changes in the marketing and presentation of Virgin Mobile services, followed by further instructions on May 20 on the same matter. On July 15, Qtel was ordered to “correct any wrong or misleading perception created by Qtel about Virgin Mobile services, and to ensure compliance with the telecommunications law”.

The requirements imposed upon Qtel dealt with branding and naming of the services, the use of logos in advertising materials, the branding and use of retail outlets, call centres and information presented to the public in person and on websites.