The government is set to usher in mobile virtual network operators (MVNOs), allowing players without telecom licences to provide services by buying bulk airtime from licensees and reselling it to consumers. Regulator Trai on Monday issued a consultation paper soliciting the views of various stakeholders on the subject.
The proposed move would open up a whole new avenue for companies in the telecom space with newer value-added features, and potentially accelerating the pace of subscriber addition that could help the country achieve 500 million users ahead of the 2010 target. The total telecom market in India by revenues, which currently stands at Rs 1.31 lakh crore, is growing annually at almost 30%.
?For promoting the MVNOs, an enabling regime should be there. The entry barrier should not be such that the genuine MVNOs are not able to make it. At the same time, there should be some provision so as to encourage only serious players,? a Trai statement said.
The Trai consultation paper comes after the department of telecommunications (DoT) sought its recommendations on the need for and timing of MVNO introduction, as well as the terms and conditions of the licence to be granted. Though Trai had earlier allowed operators to share passive and active infrastructure, it had stopped short of permitting MVNOs fearing new players would not invest in building networks.
The recent Tata Teleservices Ltd franchise agreement with British MVNO major Virgin Mobile kicked up a major hue and cry, with rival operators claiming it amounted to a backdoor MVNO entry. Though DoT did not stop Virgin?s services, both it and Trai are examining the alliance. Around the time, DoT secretary Siddhartha Behura had said the country could go for MVNOs.
