On March 2, 2008 Virgin announced its entry into the ballooning Indian mobile market via value added services targeting youth segment with a franchise agreement with Tata Teleservices. Virgin provides value added services in various mobile markets around the world. Virgin doesn’t actually hold any wireless licenses. It simply brands its services in partnership with mobile operators as value added. It is quite a common practice across the globe to buy bulk airtime, add new features and resell with custom branding.
On March 4, 2008 the DOT asked for clarifications from Tata Teleservices on this agreement and asked to stop any services under the arrangement with Virgin until the agreements are reviewed and in accordance with the license issued by the DOT.
The COAI also has been asking for clarity on this agreement and has written multiple letters to the DOT, and has clearly articulated that the Virgin-Tata value added services agreement was illeg…