Vodafone Qatar sues over entrance of Virgin Mobile

Mobile operator Vodafone Qatar is taking legal action against Qatar’s telecoms regulator, ictQATAR, following the entrance of Virgin Mobile on the market effectively as a third operator. Earlier this month Virgin Mobile signed a brand licensing contract with Qtel allowing the British firm to provide prepaid cellular services as a mobile reseller.

Vodafone paid QAR 7.7 billion (US$2.12 billion) for the second mobile licence in 2007 and views the ‘unlicensed’ launch of Virgin Mobile as breaching the conditions of its contract.

“We are taking legal action for the damages this has caused our shareholders,” said Vodafone Qatar chairman Sheikh Abdulrahman Bin Saud al-Thani in a statement.

"We are simply protecting their interests; 82,000 of which are individual Qataris that paid 40 percent of the second mobile licence fee."

Vodafone Qatar reported revenue of QAR 361.5 million for the 2009-2010 financial year ending March 31, and a net loss of QAR 673.4 million. Since launch it has garnered almost 465,000 subscribers.