MUMBAI: In another major buy out deal in the global telecom arena, UK cable company Ntl:Telewest has agreed to buy Virgin Mobile for 984.9 million pounds ($1.7 billion).

The new company will operate under the Virgin brand following a 30 year licensing agreement.

Richard Branson, whose Virgin Group owns 71.2 per cent of Virgin Mobile, has agreed to receive a mix of cash and Ntl:Telewest stock worth 378 pence per share for his stake, plus a licence fee for the Virgin brand worth about 9 million pounds a year.

Reportedly, Branson will be the largest shareholder in the combined company with a stake of about 10 per cent, and he will have a representative on the Ntl:Telewest board.

Virgin Mobile's operating business will continue to be led by members of Virgin Mobile's current management team, and it is intended that a marketing director from Virgin will join Ntl:Telewest, bringing Virgin's brand expertise to the Ntl:Telewest management team.