Telecom Regulator Recommends Introduction of Virtual Network Operators in the Telecom Space & DoT extends full MNP deadline

Telecom Regulator Recommends Introduction of Virtual Network Operators in the Telecom Space

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 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.

The TRAI in the recently issued recommendations has proposed introduction of a licensing regime for the VNOs, allowing them to offer all segments of telecom services, including voice, data and video. The VNOs are service delivery operators that provide telecom services without owning spectrum or network infrastructure, but rely on the network and support of infrastructure providers. The VNOs buy bulk quantum of talk-time and bandwidth and then sell the same to end users under their own brand name and tariff packages.

As per the recommendations issued by the TRAI, VNOs are to be introduced on the basis of the mutually accepted terms between a Network Service Operator and a VNO. TRAI also proposes that VNOs can be permitted to set up their own network equipment, in cases where there is no requirement of interconnection with other Network Service Operators. TRAI has taken the view that the terms and conditions of sharing infrastructure between network operators (such as Airtel, Vodafone and BSNL) and a VNO should be left to the market forces. Nevertheless, the TRAI or the DoT shall have right to intervene to protect the interests of consumers and the telecom sector.

With regard to the licensing regime, the TRAI has proposed a separate service authorisation under the Unified License, which is the single license for all telecom services in India. The term of the license for the provision of VNOs is proposed as 10 years, extendable by further periods of 10 years.

In India, Tata Teleservices had partnered with Virgin Mobile for MVNO type venture. The UK based partner later pulled out from the partnership and the brand Virgin Mobile was been merged into Tata Docomo.

DoT extends full MNP deadline

As readers may be aware from our earlier posts, the Department of Telecommunications (“DoT”) had fixed May 3, 2015 as the deadline for implementation of full / inter telecom circle Mobile Number Portability (“MNP”) in India. The said deadline for the implementation has been extended by two months. The DoT has directed the implementation of full MNP across the country by July 3, 2015.

The Cellular Operators Association of India (COAI) had sought extension on the basis that the telecom operators are required to make technical modifications to their networks due to changes in National Numbering Plan for the implementation of full MNP, which would take time of about eight weeks.