The Department of Telecommunications (DoT) is likely to seek Telecom Regulatory Authority of India?s (TRAI) recommendations on implementing mobile virtual network operator (MVNO) policy. The department plans to seek clarity on various issues while introducing the MVNO policy under the new unified licensing regime.
DoT plans to seek the regulator?s views on need and timing for the entry of MVNOs, terms and conditions to be followed by such players and the cap on the number of MVNO operators in the industry. MVNOs are resellers of talk time and data bandwidth to end users. An MVNO buys bulk talk-time and bandwidth from an operator and then sells it to end users, thereby helping an operator sell services.
Earlier too, in 2011, TRAI had shared its recommendations regarding the role of MVNO in the telecom industry. The regulatory body had earlier suggested that a unified licence holder which does not hold spectrum should be allowed to work as MVNO, however, the player will cease to be an MVNO in case it acquires spectrum.
Further, the regulatory body had recommended that MVNOs be allowed to set up their own infrastructure and fulfill all obligations being currently met by service providers. TRAI, however, had suggested restricting the number of operators that an MVNO could partner with. It had stated that an MVNO should not partner with more than one operator within a district.
