TRAI has released set of recommendations for starting MVNO services in the World’s second fastest growing telecom market. Here are the key highlights,
- MVNOs will not have their own spectrum in any given circle in India
- MVNOs will be dependent on operators for spectrum in 2G + 3G + BWA
- MVNOs to be governed under the Telegraph Act of India and get a license for period of 20 years
- MVSNos have no rollout obligations
- MVNO can operate on three distinct business models in India – Full, Intermediate or Thin, as shown below. [Courtesy TRAI]
- A telecom service provider can have any number of MVNOs operating under it
- Entry fees upward cap – Rs 5 crore / category A, Rs 3 Crore for Category B and Rs 1 crore cor Category C circle respectively
- Annual license fees payable to the government is the same as that of service provider.
- Number allocation and portability to be guided by the service provider
- 74% FDI allowed
Remember, these are just the fist set of recommendations, DoT under the IT Ministry will have the final say and structure, if you are intending to be a MVNO in India, get your folks start lobbying in Delhi right away.
