The Department of Telecommunications (DoT) is likely to seek TRAI recommendations on mobile virtual network operators (MVNO).
The entry of MVNO means Indian mobile subscribers will be able to buy wireless packages from more telecom operators. The industry is already worried about the presence of more than 10 mobile service providers in India. Though the industry has been waiting for consolidation, several telecoms are not keen to give up their valuable spectrum without adequate price.
India has more than 850 mobile subscribers and the expectations are that the market will further grow because there is a huge untapped market. MVNOs will be looking at offering specialized or targeting marketing. For instance, MVNOs can focus on youths / rural markets.
“Trai had given recommendations on MVNO on April 12, 2011. DoT may again request TRAI to give its recommendation on the entire issue of resale at service level under various service authorizations under Unified Licence,” said a DoT official.
It had said that a Unified License holder who does not possess spectrum should be allowed to work as MVNO but will cease to be in that category on procuring spectrum.
The regulator had recommended that MVNOs be allowed to set up their own infrastructure and fulfill all obligations like a full-fledged telecom operator.
TRAI, however, had restricted that they should not partner with more than one telecom operator within a district.
DoT is likely to seek TRAI’s view on need and timing for introduction of new service provider, terms and condition of such service provider and number of operators.
TRAI recommendation will be considered by DoT while preparing guidelines for MVNOs.
MVNOs will help the bleeding telecom operators to sell their service and lower the burden of operational expenditure.
Richard Branson promoted Virgin Group had started providing mobile services in partnership with telecom operator Tata Teleservices. Industry body COAI objected to partnership between them and called Virgin mobile a MVNO, said agency reports.
Telecom license conditions did not allow MVNOs to operate in India. The DoT later gave clean chit to TTSL-Virgin Mobile after scrutinizing deal but Virgin exited from partnership in 2011.
TelecomLead News Team