Computers, Science, Technology


Computers, Science, Technology
Computers, Science, Technology

Mobile virtual network firms get green signal

Salmanayesha IF-Sizzlerz

Joined: 11 March 2006
Posts: 9059

Posted: 06 August 2008 at 7:57pm | IP Logged
Mobile virtual network firms get green signal
NEW DELHI; More than five months after the launch of the Tata-Virgin Mobile joint venture, the Telecom Regulatory Authority of India (Trai) has recommended allowing MVNOs (mobile virtual network operators) in the country.

According to Trai, there should not be any limit to the number of MVNOs attached to a mobile network operator. However, an MVNO can't get attached to more than one operator.

Some sections in the industry had called the recent Tata-Virgin venture an MVNO, something that is not permitted in India. The Tatas had maintained that their JV was only a franchise agreement, and not an MVNO.

It is believed that applications from many global MVNOs are with the department of telecommunications. Across the world, there are around 360 planned or operational MVNOs. UK-based Virgin Mobile also offers MVNO services in other parts of the world.  

While top government representatives had indicated way back in March that the government was open to the idea of allowing MVNOs, DoT sought Trai recommendations on the issue. Now with the regulator giving a green signal, the era of MVNOs seem to be round the corner. Interestingly, in its recent 3G (third generation) telecom policy, the government touched upon the issue of trading and buying of spectrum, something that is integral to the MVNO concept.

An MVNO is a licencee in any service area that does not have spectrum of its own for access service, but can provide mobile phone service to its own customers through an agreement with the licensed mobile network operator.

The regulator has justified opening up the telecom market to MVNOs by saying that India is witnessing exponential growth in the sector. India is the second-largest mobile telecom market in the world after China in terms of subscriber numbers. As of end of June, there were 325 million telephone connections in India, out of which 286 million were mobile users. The monthly addition is around 8 million subscribers in the country.

According to Trai, "to maintain such exponential growth, the challenge is to optimally utilise the available resources while ensuring competition and availability of services at affordable price." The regulator sees introduction of MVNOs as a natural progression towards enhancing free market principles and contributing to the efficient use of existing telecom infrastructure.

Trai has recommended introduction of MVNOs as a distinct service provider with its own licensing and 'light touch' regulatory framework. Although MVNOs can choose their own business models, they would not be allowed to set up radio access network and base stations etc.

A 20-year licence would be granted to an MVNO, the regulator has said. But, the validity of MVNO licence shall be co-terminus with the validity of the parent mobile network operator. MVNOs must follow the norms related to FDI limit, substantial equity and mergers, as applicable to telecom service providers now.

An MVNO must have at least 10% of the networth specified for a mobile network operator. It must also have 10% of the paid-up capital of the mobile network operator.
Trai has recommended that a mobile phone service provider would pay spectrum charges also on the revenue of MVNOs. And the subscribers of the MVNOs should be counted towards the parent MNOs for the purpose of spectrum allotment by the government.

To make things easy for MVNOs, the entry fee would be nominal. But, whenever an MVNO is offering a service, it would be responsible for the quality of service.

  • Page 1 of 1

Go to top

Related Topics

  Topics Author Replies Views Last Post
Nokia-to launch mobile banking

Author: anu_cooldude   Replies: 0   Views: 940

anu_cooldude 0 940 01 September 2009 at 7:24am by anu_cooldude
Wall Street virtual stock trade game

Author: verekele   Replies: 0   Views: 587

verekele 0 587 04 June 2009 at 11:35am by verekele
Virtual memory??

Author: .Saira.   Replies: 4   Views: 702

.Saira. 4 702 23 January 2009 at 10:28pm by aspardeshi123
EA, Endemol Develop ’Virtual Me’

Author: albusdumbledore   Replies: 0   Views: 787

albusdumbledore 0 787 17 April 2007 at 1:23am by albusdumbledore
Best BRITISH Mobile Network!???


Author: radha07   Replies: 10   Views: 1502

radha07 10 1502 08 April 2007 at 12:17pm by preetysadia

Forum Quick Jump

Forum Category / Channels

  • Please login to check your Last 10 Topics posted

Disclaimer: All Logos and Pictures of various Channels, Shows, Artistes, Media Houses, Companies, Brands etc. belong to their respective owners, and are used to merely visually identify the Channels, Shows, Companies, Brands, etc. to the viewer. Incase of any issue please contact the webmaster.

Popular Channels :
Star Plus | Zee TV | Sony TV | Colors TV | SAB TV | Life OK

Quick Links :
Top 100 TV Celebrities | Top 100 Bollywood Celebs | About Us | Contact Us | Advertise | Forum Index