The Telecom Regulatory Authority of India (Trai) has recommended that any firm which wishes to become a mobile virtual network provider (MVNO) should also be granted a universal access service licence (UASL) without any spectrum.
MVNOs are otherwise unlicensed operators who buy bulk airtime from licensed telecom operators and then sells it to the consumers. The Trai has now recommended a UASL for them since in May last year it had suggested that in future all telecom licences be de-linked from spectrum. Hence in such a scenario any company wishing to become an MVNO may acquire a telecom licence and subsequently enter into a spectrum sharing arrangement with an operator having spectrum.
As part of the recommendations the Trai has also said MVNOs should fulfil all the obligations of a telecom licensee.
Contrary to the recommendation made in August 2008, the regulator has said an MVNO may be allowed to use the spectrum of the main operator (mobile network operator) and also to set up infrastructure including Radio Access Network (RAN)/Base Station Subsystem, if required.
An MVNO should also pay spectrum charges as per the slab applicable to the parent firm and for counting the roll out obligations, the MNO can take into account the roll out done by the MVNOs attached to it.
As part of its consultation paper, the regulator has once again highlighted that the Universal Services Obligation Fund or USOF should be separated from the DoT and empowered in a way similar to the NHAI.