Vodafone Granted Extra Time to Expand its Qatari Network

Qatar's telecoms regulator, ictQATAR has amended the license recently granted to Vodafone to grant the company an additional six months to achieve national coverage. Under the terms of its license Vodafone Qatar was required to achieve 98% population coverage and launch full services by 1 March 2009. The revised terms require 98% coverage by 1 September 2009 and the launch of services, including two-way phone mobile and SMS, by 1 July 2009.

Last year Vodafone and Qatar Foundation Consortium was granted the country's second mobile operator license for a payment of US$2.12 billion.

ictQATAR says that it made the decision to amend the license due to unforeseen delays experienced by Vodafone Qatar such as acquiring sites for mobile base stations. Last month, Vodafone signed a tower sharing deal with Qatar Telecom (Qtel).

To date, the company has switched on its network, achieved interconnection with Qtel, and has launched a trial service to establish the effectiveness of its network.

Announcing the revised license terms, Dr. Hessa Al-Jaber, ictQATAR Secretary General said "Despite the fact that Vodafone Qatar has not met the initial target dates set out in its license, ictQATAR is satisfied with the progress that has been made on network development and interconnection with Qtel, and looks forward to the launch of competitive telecommunications service in Qatar in the near future".

Following amending the license terms, ictQATAR has decided not to cash the performance bonds it holds against Vodafone Qatar's coverage obligations amounting to QAR 110million. ictQATAR will continue to hold these performance bonds as security to ensure the revised coverage obligations are met.

Qatar Telecom is the incumbent monopoly operator in the country. According to figures from the Mobile World, the company ended last year with 1.68 million customers -  which represents a population penetration level of 180%. This is boosted by a high number of foreign workers though.

On the web: ictQATAR - Mobile World

Posted to the site on 5th April 2009