UPDATE 1-Indonesia's Indosat subscribers up a third in H1

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JAKARTA, July 25 (Reuters) - Indonesia's second-largest mobile phone firm, PT Indosat Tbk (ISAT.JK) (IIT.N), said on Friday it signed up 7.9 million new subscribers in the first six months of this year, a 32 percent rise from the end of 2007 and almost hitting its full-year target.

The company, which had previously targeted 8 million new subscribers this year, said it had 32.4 million subscribers by the end of June, up from 24.5 million at the end of last year.

Indonesia has a rapidly growing telecoms market where the number of mobile phone subscribers is expected to soar to 120 million by the end of 2008 from some 90 million last year.

However, increasing competition among operators and the entrance of new rivals is expected to push margins down.

The company did not give data on average revenue per user.

PT Telekomunikasi Selular, 65 percent controlled by PT Telekomunikasi Indonesia Tbk (TLKM.JK) and 35 percent owned by Singapore Telecommunications Ltd (STEL.SI), is the largest mobile phone operator in Indonesia controlling over half the market.

Qatar Telecom (QTel) QTAL.QA QTel bought a 40.8 percent stake in Indosat from Asia Mobile Holdings for $1.8 billion in June, and plans to hold a tender offer for the remaining of Indosat shares. (Reporting by Harry Suhartono, editing by Ed Davies)