DoT has permitted mobile virtual network operators (MVNOs) to provide services in India. The detailed guidelines for MVNOs will be issued by DoT after it receives the Telecom Regulatory Authority of India’s (TRAI) inputs on some issues. According to sources, the Telecom Commission is planning to impose a licence fee of Rs 850 million for pan-Indian MVNO operations.

The maximum entry fee for metro and Category A circles has been pegged at Rs 50 million, for Category B circles it is pegged at Rs 30 million and for Category C circles it is Rs 10 million. The floor price has been set at Rs 10 million, Rs 5 million and Rs 2.5 million respectively. MVNOs will have to pay spectrum charges similar to what existing operators pay. In addition, they will have to give a performance bank guarantee equivalent to 5 per cent of what existing mobile players have paid.