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New Delhi, May 5 The Telecom Regulatory Authority of India (TRAI) has kick-started the process for introducing Mobile Virtual Network Operators (MVNOs) in the country by issuing a consultation paper to discuss the policy regime for the new breed of operators.

MVNO is an entity that does not have spectrum but can provide mobile services to customers by sharing the spectrum of the mobile operators. Such companies may have their own infrastructure to offer the service. The concept has gained popularity in the last few years and there are over 300 MVNOs registered throughout the world. MVNOs operate through commercial arrangements with licensed operators and buy bulk minutes of traffic and resell them to their own subscribers.

TRAI has sought comments from stakeholders on various issues such as entry fee, licence fee, different MVNO models, FDI limit, tariff and roll out obligation for MVNOs.

Explaining the need to introduce MVNOs, TRAI said “The introduction of MVNO is seen as a natural progression towards enhancing free market principles and contributing to the efficient use of existing telecommunication infrastructures.

Following this growing trend of mobile market, various categories of users are emerging with different preferences. It often becomes difficult for a large operator to service such diverse requirements effectively. Such varied requirements could get better addressed by niche operators who can cater to specific customer segments. They may have better knowledge of the local market. In short, the framework of wholesale and retail becomes important.”

A number of telecom players including Tata Teleservices, Spice and the new operators are in favour of permitting MVNOs.

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