Clarify on Virgin Mobile issue: COAI to DoT

Corporate Bureau
Posted: Friday, Feb 29, 2008 at 2245 hrs IST
Updated: Thursday, Feb 28, 2008 at 2305 hrs IST

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New Delhi, Feb 28 : The Cellular Operators Association of India (COAI) on Thursday urged the department of telecommunications (DoT) to clarify whether UK-based Virgin Mobile has been issued the first mobile virtual network operators (MVNO) licence.

Under MVNO, an operator does not have infrastructure, but buys minutes in bulk from a network operator and uses its own brand to sell it to users. The present policy doesn’t allow MVN operators or resale of airtime in the country.

In a February 27 dated letter to DoT secretary Siddhartha Behura, COAI director general TV Ramachandran said, “We are surprised to read in media reports that Virgin has been granted India’s first MVNO license and that the company announcing its launch /making an important telecom announcement when the president of Virgin Atlantic travels to India this week.”

COAI asked whether the policy has been amended to allow for introduction of MVNOs. It also sought details on whether licences were issued to any company for providing services under MVNO licence. The GSM lobby asked for the names of the operators who have been given such licenses and the terms and conditions of such licenses for MVNOs. Virgin Mobile, a part of the Virgin Group owned by Richard Branson, has reportedly been planning to join hands with Tata Teleservices to offer telecom services in India. However, the nature of the partnership and the services Virgin will offer is not clear yet.

During his visit to India last year, Virgin Group chairman Branson had said the company had finalised a local partner for its foray into the telecom sector. Virgin also provides brand licensing, technical and consultancy services to Essar Retail.

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