Virgin Mobile + Tata Indicom force to issue MVNO licenses
Finally, the executives in the Tata boardroom have woken up and took a bold step to let UK’s Virgin Mobile operate on their CDMA network without waiting for any MVNO license from DoT 
Tata Teleservices will benefit from the deal as their mobile network is currently underutilized. Exactly a month ago, in a somewhat lengthy post, I had said Telecom is not a viable business for everybody and instead ambitious business houses should take the MVNO route.
Analyzing the deal closely, Virgin will act as a franchisee of Tata Teleservices [It is not TTSML] and resell its CDMA-based mobile services. However, the exact difference between a MVNO and a franchisee are not clear 
Virgin expects to add some 5 mn subs in the next three years (about 1.1% market share in 2010). Company also expects to break even in three years indicating that a 1.1% market share and this pricing would be sufficient for break-even levels.
Virgin mobile is mostly popular in the pre-paid segment amongst the youth in countries where it operates, a direct competition to Vodafone in India. Virgin is pricing outgoing calls at Rs1/minute for the first two minutes and Rs0.50/min after that. his compares with current rates of Rs1/minute for incumbents. I really doubt if the Indian youth will go the Virgin way as most of them don’t like to get locked on to unappealing CDMA handsets [one of the worst characteristics]. Virgin should also consider striking a deal with one of the GSM operators.
As usual, empty vessels [COAI] were making noises to block the deal but looks like there are no stops for the Ferrari lover Ratan Tata
Tags: Virgin Mobile, Tata Indicom, MVNO, Mobile India
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