Virgin Mobile in India with Tata Teleservices

MUMBAI, March 2 (Reuters) - Virgin Mobile, a unit of British communications group Virgin Media (VMED.O: Quote, Profile, Research, Stock Buzz), has launched youth-focused services in India through telecom operator Tata Teleservices, officials from the companies said on Sunday.

Tata Teleservices, India's No. 2 CDMA mobile operator, will launch Virgin Mobile in 50 cities initially and in more than 1,000 cities by the year end, Virgin Group [VA.UL] Chairman Richard Branson said.

It expects to get 5 million subscribers over the first three years with special value-added services and handsets priced at 2,000-5,000 rupees ($50-$125), he said at a news conference.

"This is Virgin Mobile's seventh launch globally and Virgin's largest investment to date in India," he said, without specifying financial details.

"The Indian market is growing like no other market in the world," he said, referring to the nearly 8 million new mobile users who sign on every month, drawn by very low call rates.

India is the world's fastest-growing mobile services market, attracting foreign firms including Vodafone Plc (VOD.L: Quote, Profile, Research, Stock Buzz) and SingTel (STEL.SI: Quote, Profile, Research, Stock Buzz), which has a stake in leader Bharti Airtel (BRTI.BO: Quote, Profile, Research, Stock Buzz).

Virgin Mobile estimates there are 215 million urban youth mobile subscribers and an additional 50 million urban youth subscribers over the next three years.

It expects revenue in this segment will be in excess of 350 billion rupees in 2010, said Jamie Heywood, deputy CEO of Virgin Mobile in India.

Foreign ownership in mobile service providers is capped at 74 percent in India.