The Department of Telecommunications (“DoT”) is considering permitting the entry of Mobile Virtual Network Operators (“MVNOs”) that are presently not allowed to operate in India. Recent media reports suggest that the DoT is likely to seek views of the Telecom Regulatory Authority of India (“TRAI”) on MVNOs in India.
The concept of MVNOs is established in the telecom industry worldwide and is common in countries such as the US, UK and Australia. It is expected that once MVNOs are introduced and implemented in India, the operational expenditure of the telecom operators and service providers would reduce. This might also increase the level of competition in the telecom industry.
The TRAI, in 2011, had provided certain recommendations on MVNOs. TRAI provided that a Unified Licence holder who do not possess spectrum should be allowed to work as MVNO, however, such license holder shall cease to be an MVNO on procuring spectrum. Further, the TRAI had also recommended that MVNOs be allowed to set up their own infrastructure and fulfill all obligations like full-fledged telecom operators, although restricting that a MVNO should not partner with more than one telecom operator within a district.
As per recent reports, DoT is again considering to seek TRAI’s view / recommendations on MVNOs. The DoT is likely to seek TRAI’s views on the need and timing for introduction of MVNOs in India, the terms and conditions for operations and the number of such operators / service providers.
The TRAI’s recommendations would be considered by the DoT while preparing guidelines for MVNOs.
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[…] Recently, the Telecom Regulatory Authority of India (“TRAI”) has issued recommendation for introducing Virtual Network Operators (“VNOs”) in the telecom sector vide press release no. 30/2015 dated May 1, 2015. Last year, the Department of Telecommunications (“DoT”), while exploring the possibility to permit entry to the VNOs, had sought the views of the TRAI. Our previous post on the subject can be accessed here. […]
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