Virgin - Tata deal against norms : Rivals

Last week, we reported about the launch of Virgin mobile in India in an association with Tata Tele services Limited (TTSL). Rival telecom operators in India sees this deal as a violation of telecom law and is a roundabout way for Virgin being the mobile operator in India. According to the deal, TTSL will pay the Virgin group for using its brand name to offer voice and value added services.

Cellular Operators Association of India (COAI) , which is representing GSM Operators in India has reported to DoT as this deal is against the norms. DoT has already asked TTSL to clarify the terms of the deal as Mobile Virtual Network Operator(MVNO) is illegal in India. But TTSL managing director claims that the deal is fully in compliance with the laws and regulations of the country and Tata motors alone will take care of Network, Billing and Revenues.

In the mean time, Telecom Secretary Siddhartha Behura have said in a surprising statement that India is thinking about the possibility of allowing MVNO’s and DoT may ask TRAI to give its recommendations on the issue. However it may take time , as TRAI will study global practices, seek stakeholders comments, hold an open house discussion, and then only submit its recommendations back to the DoT.