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TRAI’s nod for MVNOs, Virgin Mobile and Tata Fight over the Brand

This is interesting! – Virgin Mobile partnered with Tata Teleservices (TTSL) in order to enter the Indian market. And now that TRAI has given it’s nod to MVNO and has also asked the government to allow MVNOs, Virgin Mobile and TTSL partnership seems to be under some stress.

TRAI’s Recommendation on MNVO

  • Entry fee for MVNOs be fixed at a maximum of Rs 5 crore for Metro/Category A, Rs 3 crore for Category B and Rs 1 crore for Category C service areas.
  • A MVNO will have to pay a maximum of Rs 75 crore for launching nationwide MVNO services in comparison to the Rs 1,651-crore entry fee paid by an operator who sets up its own physical network throughout the country. [ET]
  • 74% FDI alllowed

And now, Virgin is revisiting it’s strategy and wants to play the game, as it intended to – i.e. as MNVO!Earlier, operators raised concern regd. Virgin’s MVNO status and DoT declared that Virgin is not a MVNO and TTSL is using Virgin’s brand for marketing TTSL’s services.

Things seem to be a little confusing now as Virgin, with all the heavy marketing campaign will try to unhook itself from TTSL (now that govt. is okay with MVNO’s entry ), which obviously doesn’t go well with Tatas

The company has exclusive rights over the Virgin brand. It is now up to Virgin to approach the company if they want to operate as mobile virtual network operator, or MVNO. Virgin can’t approach third party for MVNO without Tata Teleservices’ nod.[source]

Recommended Read: vBling, Future Group to foray into MVNO space

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