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India’s telecoms regulator about to allow MVNOs

India’s telecoms regulator about to allow MVNOs

India’s telecoms regulator, the TRAI has released a consultation paper on allowing MVNOs in the country. The governmental Department of Telecommunications (DoT) has earlier sought TRAI’s recommendations on the need and timing for introduction of MVNO as well as terms and conditions of the license to be granted to such operators.

The issue of MVNO came up during the earlier consultation process on infrastructure sharing, and was heightened when Virgin Mobile attempted to set up a MVNO with Tata Teleservices.

The regulator says that an enabling regime should be set up in order to promote MVNOs - and while the barriers to entry should be lowered, the regulator warned that it didn’t want them lowered too far so as to ensure only “serious” companies can enter the market.

The Consultation Paper also discusses the possible business strategies of the MVNOs such as offering services with low price, focusing on specific customer segment, offering differentiated Value Added Services and International clustering.