TRAI has released the recommendations for the entry of mobile virtual network operators (MVNOs), according to which MVNOs should have their own licensing and regulatory framework.

TRAI has released the recommendations for the entry of mobile virtual network operators (MVNOs), according to which MVNOs should have their own licensing and regulatory framework.

While they should not be permitted to set up radio access network/base station subsystems, they should be allowed to choose their business model. TRAI has also recommended that MVNOs be allowed to offer services within the circle of the mobile network operator (MNO). Separate licences, valid for 20 years, will be required for each service area. However, the licence would stand void if the MNO’s licence expires within the 20-year period. According to TRAI, the maximum entry fee for MVNOs should be Rs 50 million for metros and Category A circles, Rs 30 million for Category B circles and Rs 10 million for Category C circles. An equity holder having 10 per cent or more stake in one MVNO will not be allowed to have more than 10 per cent stake in another MVNO. A foreign direct investment (FDI) limit of up to 74 per cent has also been recommended.

There shall be no rollout obligation for MVNOs.