The mobile phone retailer and Virgin will each have a 48.5 per cent stake in the project, with management holding the final 3 per cent.
Operating under the Virgin Mobile brand, the venture will use the Orange network and will include Carphone Warehouse's existing MVNO operations in France.
The likely financial implications of the move will be announced on April 11 as Carphone Warehouse briefs investors and analysts.
Geoffrey Roux de Bezieux will step down from the Carphone Warehouse board and his role as chief operating officer, distribution, to take up the position of chairman and chief executive of Virgin Mobile France.
The retailer also announced that UK chief executive Andrew Harrison has been appointed to the board as an executive director.
Carphone Warehouse has also appointed Andrew Catterson to the position of UK managing director of Retail. He will be responsible for 650 stores and report to chief operating officer Richard Walker. Catterson has previously held managing director roles at Phones 4 U and Office World.
Virgin Mobile launches in France today.
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