It looks like the competition is finally getting to Qtel.

The telecommunications company, which has been slashing rates to compete with Vodafone, posted a 13 percent drop in net profit for the third quarter of $155.7 million. 

Reuters reports:

Two analysts polled by Reuters forecast Qtel would post a quarterly profit of between 750 and 814 million riyals.

Qtel, which owns controlling stakes in Kuwait’s Wataniya and Oman’s Nawras, said consolidated revenue was 8.13 billion riyals in the quarter, up from 6.97 billion riyals a year earlier.

“Seasonal promotions and foreign exchange losses impacted Q3 2011 net profit,” said the statement, which referred to an “environment of ongoing competitive and market challenges” in 2011.

Despite the loss in net profits, Qtel – the subject of a boycott campaign by some Qatar residents this summer – did post a gain in revenue and boosted its customer base about 20 percent from a year ago.

Since its inception, Vodafone has reported losses for eight consecutive quarters – though it has narrowed the amount of money it is losing over time.

The competitor also won a small victory this year when ictQatar ordered Qtel to shut down its Virgin Mobile-branded service for engaging in anti-competitive behavior.

Image courtesy of Qtel’s Facebook page.