Vodafone Qatar said on Tuesday that more than 1 million customers are now using its network, three years after the company ended the monopoly of Qatar Telecom.
The telco said in a statement that it was a "significant milestone in the growth of the company".
Vodafone Qatar's CEO, Richard Daly, said, "We are very proud that in just three years of operations over 1 million customers have chosen to become Vodafone customers.
"To have 55 percent of the population using our services is a great achievement for our shareholders, staff and partners."
He added: "We are committed to fully support the country's objective to be a truly connected global leader by continuing to use our international expertise to bring innovative and exciting services to customers in Qatar."
Daly said 2012 was a great year of growth for Vodafone with the launch of its post-paid services.
Vodafone Group announced in November that it has extended a contract to manage loss-making affiliate Vodafone Qatar until 2018 and will take a smaller percentage of its revenues under the new terms.
Vodafone, which owns 23 percent of Vodafone Qatar, took over managing it in June 2008 for an initial period of five years.
The telco, which ended Qatar Telecom's (Qtel) domestic monopoly in 2009, has yet to make a quarterly net profit.
Vodafone Qatar began post-paid contract services in June, which the operator hopes will help woo subscribers from Qtel and improve margins.
Customers on post-paid phone contracts are typically wealthier and spend more on telecoms as well as being less likely to switch operators.