The Hindu Business Line : Tata Tele counters COAI objections to Virgin tie-up

Sparring is on
Tata Tele: Does not payment on erlangs basis mean active access to infrastructure, network to foreign cos?
COAI: If Virgin Mobile is franchisee, then it has to use only Tata brand, not its brand.

Thomas K Thomas

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New Delhi, March 4 The battle between GSM operators and Tata Teleservices has gone a notch higher with both sides seeking an investigation by the Department of Telecom into their respective partnerships with other service providers and technology suppliers.

While the Cellular Operators Association of India has shot of another letter to DoT seeking a clarification on Tata Teleservices’s tie-up with Virgin Mobile for offering branded cellular services, Tata Teleservices has shot off a missive alleging that Bharti Airtel had violated the licence norms by outsourcing network and IT management to foreign companies.

“We understand that the payments for some of these elements made by the licence holders to the foreign companies are based on the total traffic generated on erlangs (a measure of usage of spectrum) basis, which amounts to the complete outsourcing of infrastructure. We request you to please advise us as to the clause of the licence under which this outsourcing is permitted and also whether we can also go ahead with this arrangement of giving access to active infrastructure and network to foreign companies, to manage and operate capacities on real time basis,” said the Tata Teleservices letter to DoT.

The letter is being seen as a counter to the objections raised by COAI against the recently announced partnership with Virgin Mobile. COAI, in its letter to DoT, said, “On going through the presentation (made during the launch), it may be noted that there is absolutely no mention of Tata Teleservices or the Tata Indicom brand in the entire presentation nor is there any information as to the capacity in which Virgin Mobile is entering the Indian mobile market.

“It may be appreciated that if the company is acting /operating as a franchisee of Tata Teleservices, then its services can be retailed only under the Tata Indicom brand. It is evident from the launch presentation that this is not the case. We would deeply appreciate if you could kindly look into this matter and clarify as to in what capacity Virgin Mobile is entering the Indian market and the terms and conditions thereof.”

Meanwhile DoT said that it was examining the allegations made by COAI and may ask Tata Teleservices to clarify on the nature of service.