With a 52 per cent market share Vodafone Malta is the market leader. Its revenue share is "even higher" and the rate of erosion of its market share is more stable - to the extent that Mr Dowidar predicts that the trend will be reversed in 2006 with an actual gain.

"This is a great achievement for Go Mobile, despite being a local business," he said. "I have a lot of respect for them."

Vodafone currently operates five retail outlets and is looking to developing its business further with 25 specialist dealers.

Mr Dowidar said some 1,600 outlets sell mobile-related products - mainly top-up cards - in Malta and Gozo. Of these, 300 sell mobiles in some form.

Vodafone's strategy is to penetrate the market through the combination of its retail outlets and the third-party dealers selling its products.

Vodafone provides specialist training to the specialist dealers and even retails its Vodafone-branded handsets at these outlets. "We want our customers to get the same Vodafone experience, accompanied by an equally high level of quality service," Mr Dowidar said, "and we are looking to developing the Vodafone business with these dealers."