In a move that benefits consumers but may spell trouble for competitor Vodafone, Qtel has permanently cut its “Pay As You Surf Mobile Internet” prices from QR10 to QR.55 per MB.

The price cut is sure to hurt Vodafone, which charges QR2 per MB and has been struggling to reach profitability since entering Qatar’s telecom market as Qtel’s only competitor in 2009.

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.

But this price cut seems rather dramatic on Qtel’s part.

What do you guys think?

Will the new rates affect your mobile Internet choices?

And could this be another way for Qtel to price Vodafone out of business?