Date:29/02/2008 URL: http://www.thehindubusinessline.com/2008/02/29/stories/2008022952511200.htm

Back Virgin’s entry into India telecom space near certain

Our Bureaus

Mumbai/ New Delhi, Feb. 28 The UK-based Virgin Group’s entry into the Indian telecom space is now near certain, with the Chairman, Mr Richard Branson, scheduled to announce its India plans this Sunday.

Sources said the Virgin Mobile may be tying up with Tata Teleservices for bringing its products and services to India.

But already, industry hackles are raised on the type of operations that Virgin — a mobile virtual network operator (MVNO) in other countries — would provide in India.

The Cellular Operators Association of India shot off a letter, on Thursday, to the Department of Telecom (DoT) seeking clarity on whether or not MVNOs are allowed. An MVNO is a mobile operator that neither owns spectrum nor has its own network infrastructure. Instead, it buys airtime from cellular operators in bulk and resells it under its own branding.

“As far as we are aware, the present telecom policy does not either permit MVNO or the reselling of airtime. In light of the above, we would appreciate if you could inform us whether and when the policy has been amended to allow for introduction of MVNOs,” the COAI letter said.

India would become the seventh market for Virgin Mobile, after Australia, Canada, France, the UK, the US and South Africa. In all these geographies, Virgin acts as an MVNO.

India has emerged as a hotspot destination for the Virgin group. Mr Branson had earlier told Business Line that the company intends to start a domestic airliner in the country. Currently, Virgin Atlantic, the overseas carrier of the group, has flights operating to London from Delhi and Mumbai.