Qatar's telecoms regulator brushed aside concern on Sunday over the entry of Virgin Mobile into the market, after a rival operator said it would sue the regulator over the issue.

Vodafone Qatar said last week it will take legal action against the regulator for allowing Virgin into the market as a third provider.

Virgin signed a partnership with Qatar Telecommunications earlier this month to launch Virgin Mobile Qatar in a brand licensing agreement to offer a prepaid mobile phone service.

The regulator, ictQATAR, said only two telecoms providers have licenses to operate in the Gulf Arab state: QTel and Vodafone Qatar, a unit of Vodafone.

"Any entity with concerns about this matter should file a formal complaint with ictQATAR, including evidence to support these concerns," it said in a statement, adding it will investigate any "properly filed" complaint and take appropriate action.

A spokeswoman for the regulator was not immediately available for comment.

Vodafone Qatar said it saw Virgin Mobile's entry as a violation of the conditions of its licence, which cost shareholders 7.7 billion riyals ($2.12 billion), and of the telecoms law in Qatar.-Reuters