Tata Teleservices Limited (TTSL) has agreed to buy out the Virgin Group?s 50 per cent stake in Virgin Mobile
The Virgin Group had signed two business agreements with the Tata Group in 2008. One was a 50:50 joint venture for marketing mobile services on a revenue-sharing basis, and the other was a branding arrangement that allowed TTSL to use the Virgin brand against payment of royalty.
It is believed that while the joint venture is being dismantled, the two parties will continue with the branding arrangement. This means that TTSL will continue to pay a royalty fee to Virgin for three years.
