Virtual Network Operators Bring Competition and Innovation to the Indian Telecom Industry.

Secondary authorisation includes non-telecom services such as data analytics, cybersecurity, and digital content.

Understanding the Concept of Virtual Network Operator

The concept of a virtual network operator (VNO) has been gaining traction in the Indian telecom industry. A VNO is a company that provides telecom services without owning the underlying infrastructure. Instead, they lease the infrastructure from a major telecom operator and resell the services to their customers. This model allows VNOs to offer a range of services, including voice, data, and internet services, without the need for significant upfront investments.

Benefits of Virtual Network Operator

The introduction of VNOs in the Indian telecom industry is expected to bring several benefits, including:

How VNOs Will Operate in India

The DoT has accepted TRAI’s recommendation to provide companies with the option of obtaining authorisation as a VNO. This means that companies can apply for authorisation to provide telecom services without owning the underlying infrastructure.

The DoT has rejected the recommendations and asked TRAI to reconsider and send in revised recommendations within 15 days.

The Background

The Telecom Regulatory Authority of India (TRAI) is an autonomous body that regulates the Indian telecommunications industry. TRAI is responsible for ensuring that the industry operates in a fair and transparent manner, and that consumers are protected from unfair practices. In recent years, TRAI has been working on a number of initiatives aimed at promoting competition in the industry.

The TRAI Recommendations

TRAI recently recommended two new Virtual Network Operators (VNO) authorisations. VNOs are companies that provide mobile services without owning any infrastructure. They lease infrastructure from existing operators and provide services to their customers. TRAI’s recommendations were aimed at promoting competition in the industry and increasing consumer choice. Key features of the TRAI recommendations: + Two new VNO authorisations + VNOs would be allowed to provide services on a pan-India basis + VNOs would be required to meet certain technical and financial standards

The DoT Response

The Telecom Department (DoT) has rejected TRAI’s recommendations.

The Government’s Plan to Restructure Access Services

The government has announced a plan to restructure access services, aiming to improve the efficiency and effectiveness of the current system. The proposed changes will have a significant impact on the way access services are delivered, and it is essential to understand the key aspects of the plan.

Key Objectives

The government’s primary objective is to ensure that access services are provided at the national or circle level, rather than at the district level. This change is expected to improve the quality and consistency of services, as well as reduce costs. The government aims to eliminate the need for district-level authorisations, which are currently used to grant access services to specific areas. The proposed restructuring will also lead to a reduction in the number of access service providers, as some districts may not be able to sustain themselves in the new system.*

Benefits of Restructuring

The restructuring of access services is expected to bring several benefits, including:

Challenges and Concerns

While the restructuring of access services is expected to bring many benefits, there are also some challenges and concerns that need to be addressed.

The Need for Rationalisation of Fees and Charges

The Telecom Regulatory Authority of India (TRAI) has proposed a significant change in the way fees and charges are structured for companies seeking Telecom Circle/Metro level authorisations. This move aims to promote wider participation in the telecom sector, particularly for new entrants and small players.

The Role of Small-Scale VNOs and ISPs in Internet Access

The role of small-scale VNOs and ISPs in internet access cannot be overstated. These companies play a crucial part in bridging the digital divide by providing internet services to areas that are underserved or unserved.

VNOs face new licensing hurdles in India.

The VNO Licensing Conundrum

The Telecom Regulatory Authority of India (TRAI) has issued a clarification on the licensing of Virtual Network Operators (VNOs) in the country. The clarification has sparked a debate among industry stakeholders, with some arguing that it is a step in the right direction, while others see it as a hindrance to innovation.

The Current Landscape

In the Indian telecom market, VNOs are entities that offer mobile services without owning any infrastructure. They partner with existing telecom operators to use their network and offer services to customers. However, the licensing framework for VNOs has been a subject of controversy in the past. The TRAI has clarified that VNOs can only pair with telcos based on the license they have.