Self-styled billionaire and founder of the UK-based Virgin Group, Sir Richard Branson, has said it won't be long before they enter the Indian telecom space. The group is planning on a marketing-branding partnership with Tata Teleservices, the details of which will mostly be announced early next year.
What is known about the tie is that Virgin-branded handsets will be distributed to Tata customers, and Virgin's vast experience in telecom marketing and technology will be leveraged to advantage. Surprisingly, the collaboration, which is expected to materialize soon, may not involve huge investments by the Virgin Group. Typically, Virgin Mobile does not maintain its own network; rather, has contracts with other providers to use their existing networks. Hence, it is known as the world's first mobile virtual network operator (MVNO). However in India, MVNOs are not yet permitted despite repeated recommendations by the Telecom Regulatory Authority of India (TRAI). As such, when it actually does, Virgin Mobile will not operate as a MVNO in the country. Instead, it will be an agent of Tata Teleservices, and its branded services will be made available over the Tata Teleservices network. All said, what is interesting about the Virgin-Tata Teleservices tie-up is that it comes when Virgin's rival, Vodafone, has taken over Hutch's stake in Hutch-Essar.
What is known about the tie is that Virgin-branded handsets will be distributed to Tata customers, and Virgin's vast experience in telecom marketing and technology will be leveraged to advantage. Surprisingly, the collaboration, which is expected to materialize soon, may not involve huge investments by the Virgin Group. Typically, Virgin Mobile does not maintain its own network; rather, has contracts with other providers to use their existing networks. Hence, it is known as the world's first mobile virtual network operator (MVNO). However in India, MVNOs are not yet permitted despite repeated recommendations by the Telecom Regulatory Authority of India (TRAI). As such, when it actually does, Virgin Mobile will not operate as a MVNO in the country. Instead, it will be an agent of Tata Teleservices, and its branded services will be made available over the Tata Teleservices network. All said, what is interesting about the Virgin-Tata Teleservices tie-up is that it comes when Virgin's rival, Vodafone, has taken over Hutch's stake in Hutch-Essar.
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